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Am I correct in what I propose doing?

Posted 2 March 2015

I have dual citizenship. I have resided in the UK for the last 5 years with my children. Income from living annuity is being limited to 3%. I plan to sell my shares over 8 years and remit the proceeds together with the annuity to cover my living expenses and then increase my annuity to cover future shortfalls on my living expenses. I am 75 years old. My intention is to keep my taxable income below the tax threshold. I pay 15% WHT on dividends. I earn no income from any other source in South Africa or the UK. My taxable income converted to £ is below the personal allowance. I do not wish to officially emigrate to avoid paying capital gains tax in one go.

TaxTim TaxTim says:
3 March 2015 at 10:55

The shares that you currently hold, are the in companies where more than 80% of the assets of the company are property related?

Jeepers says:
3 March 2015 at 16:32

No they are all listed companies on the JSE

TaxTim TaxTim says:
3 March 2015 at 21:36

Non-residents for tax purposes do not pay CGT on assets other than those related to immovable property such as a house or shares of a property company so your plan would be better than formally emigrating at this point.

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