It’s not often that the taxman gives you money, but that’s exactly what will happen if you transfer the proceeds of your South African retirement annuities and preservation funds into your UK pension, and the sooner you act, the sooner you benefit.
The benefit comes in the form of tax relief and the impact can be significant. To illustrate, let’s look at the effect on a £16,000 pension contribution by a 40% taxpayer:
|Amount contributed to pension||The tax man immediately adds||Claim back up to an extra 20% tax relief||Total investment in your UK pension|
In short, you invest £16,000 in a UK pension and the taxman adds a further £8,000 – no other investment grants the same benefit.
We believe this is the most attractive option available if you still have cash tied up in retirement annuities or preservation funds in South Africa. It even ticks the right boxes if you return to South Africa as it allows you to receive the income in retirement tax free, as the source is an overseas pension.
To find out what it could mean for you speak to one of our financial consultants – it’s completely free and without obligation!