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Estate Duty Implications of Assets in both SA and the UK

Do you have assets in both South Africa and the United Kingdom and are you concerned about Estate Duty Implications?

South Africa and the United Kingdom entered into an agreement in 1978, otherwise known as a Double Taxation Agreement. This agreement is to eliminate double taxation in relation to Estate Duty (Inheritance Tax).

Although the agreement does have certain limitations, if the deceased was not tax resident in South Africa and did not reside in South Africa for the preceding 10 years before he/she died then the estate will not pay estate duty, inheritance tax (IHT), in South Africa.

In order to obtain this relief, a First and Final Liquidation Account would need to be filed with the Master of the High Court in South Africa and this official SARS (South African Revenue Service) form would need to be completed by the relevant authorities in both South Africa and the United Kingdom.

Legislation affecting taxation is forever changing so please ensure that you obtain professional advice.