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Emigrated to the UK? Time to transfer your SA pension

By March 3, 2016October 24th, 2023Pension

Emigrated to the UK? Time to transfer your SA pension

March 3, 2016

Getting money back from the taxman is not something you hear often, especially not if that figures comes in at around R150 000 for simply moving your pension across borders. But this is exactly the opportunity that may be available to you what you may stand to gain if you move your South African retirement savings into your UK pension.

SA to UK pension fund transfers

Increase the value of your pension

Consider Gordon Smith for instance. Gordon immigrated to the UK a few years ago from South Africa. He’d not given a thought to his South African pension, having always planned on returning to South Africa to retire. That was until Gordon spoke to and discovered the benefit of investing transferring his South African retirement savings into his UK pension. This ‘benefit’ is in the form of tax relief from HMRC which is designed to encourages and rewards those who make contributions to their pension.

Two years ago Gordon’s South African pension was worth R2 638 113 (£175 874). After receiving advice he surrendered it, paid R796 721 (£53 115) in tax to SARS, and transferred the net amount of R1 841 392 (£122 759) to the UK. Gordon then invested the full amount into his UK pension and the effect of tax relief increased the value of the contribution from £122 759 to £191 812. In sterling terms Gordon has increased the original gross value of his South African retirement savings by £15 938, simply by moving funds from South Africa to the UK.

At the time the GBP/ZAR exchange rate was 15.00 and Gordon was a 45% taxpayer in the UK.

Returning to South Africa

Gordon’s plans to retire in South Africa may seem like a spanner in the works but, in actual fact, it presents a further opportunity – his UK pension will be transferred to an approved offshore scheme, still based in sterling and this will enable him to receive his monthly pension in South Africa, tax free.

If you’re living and working in the UK and left retirement funding behind in South Africa this is an opportunity you’d be wise to investigate.

Move your money today!

To see if you stand to gain and by how much if you transfer your South African retirement savings to the UK, simply leave your details for an obligation-free consultation.


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