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bigduckontax
bigduckontax, Accountant
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I invested £30 000 in a South African shipping company

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Hi, I invested £30 000 in a South African shipping company in 2012. I am due to receive £100 000 very soon. I am married. I also have dual nationality. British and South African. All money transactions are traceable. How much tax do I need to pay on this money from shares sold in south Africa? I have done some research but nothing that applies to me directly. Please help.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer and pleased to be able to help you with your question. In which country do you reside? I need to know this before I can respond.
Customer: replied 1 year ago.
Hi Keith, I reside in UK.
Expert:  bigduckontax replied 1 year ago.
Your capital gain is 100K - 30K = 70K. Deduct your non cumulative Annual Exempt Amount (AEA) of 11.1K leaves 58.9K exposed to UK Capital Gains Tax (CGT) at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. Worst case scenario is a tax bill of a tad under 16.5K. Under the Double Taxation Treaty between the UK and South Africa any tax payable in SA on this gain is allowable as a tax credit against a similar charge in the UK. The Treaty precludes such items being taxed in both jurisdictions, but does not protect you from differences in rates of taxation. I do hope that you find my reply of assistance.
Customer: replied 1 year ago.
HI Keith, thank for this, but I did say that I am married. Is my wife able to accept and money? I earn £28500 per year.
Expert:  bigduckontax replied 1 year ago.
Unless she owned the shares, unfortunately no. So sorry to have to rain on your parade.
Customer: replied 1 year ago.
she did invest some money. but not the majority.
Expert:  bigduckontax replied 1 year ago.
If those shares were in her name then the gain would be shared, but if not then there is no respite from CGT.
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Customer: replied 1 year ago.
thank you for your help Keith
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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