I am living abroad and get a disability income from Discovery Life every month paid into my South African account. If I want to transfer the money over a UK bank account, how do I do it? Also, are there tax implications in the UK then as well as South Africa when bringing it in?
Does Discovery withhold any tax before paying it into your SA account?
Katherinesays: 12 May 2016 at 11:18
I do fall within the South African tax law and therefore Discovery does "tax me" even though the tax law changed last year regarding disability income in that it no longer gets taxed. Does this make sense?
Katherinesays: 12 May 2016 at 11:19
Apologies, so the answer is yes, Discovery does tax me under South African law.
TaxTimsays: 12 May 2016 at 14:38
So when you now receive the disability income it will not be taxed and then you will not have any problem taking the money out of South Africa. You would either use your foreign allowance or normal allowance. Your bank will help facilitate this.
We are not experts in the UK tax law, but it shouldn't be taxable there given it would be seen as a sort of a "'pension" from another country which are not usually taxed.
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