Money held in South Afica

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  • #38768
    lyndah
    Participant

    I have a customer who has sold his proerty in S. Africa but is having problems getting it transferred to the UK. I can’t see that we can disregard the capital, does anyone know if there are any provisions that have been made that I have overlooked?

    #109548
    John Boxall
    Participant

    Why cant he transfer it?

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #109549
    lyndah
    Participant

    He stated he has to get a certifcate from the S AFrican revenues service. I’m wondering if he had some unresolved issued when he moved over here and this is now part of it.

    #109808
    Jan Talbot
    Participant

    There are no restrictions regarding money transfers from SA to UK as far as i am aware. Sounds like he needs to get confirmation that he has paid all the appropriate taxes in SA (like our stamp duty etc) before he can transfer the balance to the UK.

    If he intends to buy in the UK and is in the process of buying, the the capital should be subject to the normal disregards anyway. If he is not intending to buy then it should be treated as capital, once the net amount is known.

    Does any of that help?

    #109809
    lyndah
    Participant

    Many thanks for that.

    #122532
    Abigail_Harvey
    Participant

    I have a similar query. Clmt says he has savings in excess of £16k but they are held in S.Africa and he is unable to get access to them as they are frozen. Should these be disregarded? I would have thought that frozen or not, he is the beneficial owner of this money and so it should be treated as capital. Any thoughts?

    #122533
    John Boxall
    Participant

    Why are they frozen? There are Exchange Control Regulations or is there another reason?

    Dont forget Reg 48

    Capital which a claimant possesses in a country outside the United Kingdom shall be calculated—
    (a) in a case where there is no prohibition in that country against the transfer to the United Kingdom of an amount equal to its current market or surrender value in that country, at that value;
    (b) in a case where there is such a prohibition, at the price which it would realise if sold in the United Kingdom to a willing buyer, less, where there would be expenses attributable to sale, 10 per cent. and the amount of any encumbrances secured on it.

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #122534
    Abigail_Harvey
    Participant

    He’s not provided any proof of not being able to access them so I think that we should at least see proof of this if we are to disregard?

    #122535
    Abigail_Harvey
    Participant

    So, as this is savings and not property or shares etc… to be sold, under Reg 48 we would be looking at the value taking into account the exchange rate?

    #122537
    John Boxall
    Participant

    Basically it’s a question of whats it worth here.

    If he cant take it out of South Africa then it’s probably nothing

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #122538
    Abigail_Harvey
    Participant

    OK thanks, so we’ll ask for proof that he can;t take it out of S.Africa and take it from there…

    #122541
    Jan Talbot
    Participant

    Definately definately get proof that he cant get the money out. It must be something to do with him directly if he cant, and he will be able to provide that evidence.

    As I mentioned before, there are no general restrictions on money travelling from SA to UK. But doesn’t it sound convincing to say “my money is stuck in SA and i cant get at it”. Unfortunately some people tell a few porkies to get benefit and will assume that the benefit offices wont check.

    His documents should already be in English too, so you wont have an issue of him saying he needs them translated.

    Good luck.
    (Ooohhh, I’d offer to go get the docs for you – its a truely STUNNING part of the world – but alas, I have no money in any country :(( )

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