Bringing money into UK from South Africa

BL181

Hi there,

I have South African Rands to bring into the UK (from a house sale)

Is there a limit to the amount I can bring in, and what are the tax implications?

Will it be best to bring a lump sum, or spread it over 2 or 3 years?

I am self employed, so do I declare it in my annual self assessment?

Thanks so much!

Thrugelmir

Easiest in a lump sum as the receiving bank is going to question the funds. 

You'll need to declare the disposal to the HMRC though presumably you'll suffer a tax liability in SA as well. May well be worth you consulting expert advice. 

bostonerimus

It depends on your tax residency when you sold the property.

wmb194

South Africa still has capital controls. The issue always used to be getting money out. This FAQ I found has some information. Seems like up to R1m, c.£50k, per calendar year should be relatively easy, though.
https://www.resbank.co.za/en/home/what-we-do/financial-surveillance/FinSurvFAQ

murmeltier

I've transferred larger amounts out of the CMA in the past.

When the funds finally arrived, they were never questioned by HSBC.

I did, however, usually call them in advance advising them of the incoming amounts - they kept telling me this wasn't necessary, but it made me feel better.

I had more issues with the sending banks - as capital controls are in place, exemptions had to be applied for and granted by the Central Bank. This required filling in forms and chasing them constantly to ensure the correct departments were dealing with this. 

In the end, it always worked, but it was always a bit nail biting while the funds were in transit.

maxsteam

There is a double taxation agreement between UK and RSA so you should not worry too much about declaring the details to both tax authorities. You should not be asked to pay twice.

bostonerimus

If you are a UK tax resident taxed worldwide on an arising basis and cannot claim Residential Relief then HMRC will charge CGT on the sale of your house in RSA. Article 13 of the double tax treaty allows RSA to also tax the sale according to its rules. So you will pay RSA and take a credit against UK tax due.