Moving back to SA? 8 things to know

Every expat has their own reasons for heading home, but one thing they all have in common is wanting to know the financial implications of their move.

Julian Adshade ● May 20, 2025

A significant number of South Africans are returning home from the UK, driven by various factors, including wanting to be closer to family, enjoying the outdoor lifestyle and having a more affordable cost of living. However, the financial and tax implications are key concerns for those coming home – or even just considering the move.

Earlier this year our Wealth team offered complimentary one-on-one consultations, providing expert financial advice to South Africans considering returning from the UK. Here are some of the mostly commonly asked questions we received.

What expats heading home want to know

How will my UK rental income be taxed?

Your UK rental income will be taxed in South Africa because South Africa taxes residents on their worldwide income, if you are resident for tax purposes.

South Africa has a Double Taxation Agreement (DTA) with the UK. This allows the UK to tax the income first, whilst allowing you a foreign tax credit for the tax you may have already paid.

If UK tax is lower than what you would owe in SA, you'll pay the difference to SARS.

If the UK tax is equal to or higher, then no additional tax is due.

I have a UK Ltd company drawing salary and dividends. What are the key considerations?

Firstly, if you own more than 50% of the UK Ltd company, SARS may treat it as a Controlled Foreign Company.
In such a case, net profits may be included in your SA taxable income.
There are some exemptions, so specialist advice will be required.

Private medical aid – how to obtain it and what are my options?

Medical aid in South Africa is a necessity.
You would need to choose between a hospital plan, a comprehensive plan which will likely cover both in and out of hospital, or a savings plan which uses savings to cover out-of-hospital expenses.
Most schemes will apply a general waiting period of three months and a condition-specific waiting period of 12 months for pre-existing conditions. No claims will be allowed during this period.
Later-joiner penalties may apply if you have not been a member of a South African medical scheme and are over the age of 35 – this can be up to 75% of the premium.

Do I need to cash out my UK pensions?

No, you do not need to cash out your UK pensions when you leave the UK.
You can still access them when you reach retirement age, currently 55, increasing to 57 from 2028.
Some providers may limit the type of access that you have, and a review is often recommended.

How will my pensions be taxed?

UK pensions in South Africa may be taxed differently depending on the source.
Workplace pensions are generally taxed in the country of residence (South Africa), whereas personal pensions are taxed in both countries, with tax relief for any foreign tax paid in South Africa.
You will need to review each pension to understand the tax position.

Should I keep my Individual Savings Account (ISA)?

ISA's are tax-free in the UK, but not in South Africa.
Depending on the value of the ISA, you will need to consider whether to retain the ISA and pay tax on income and growth or move the funds to a better-suited vehicle.

How will inheritance tax work?

The UK recently adopted a residence-based system for Inheritance Tax purposes.
If you are ordinarily resident in South Africa, you will be taxed on your worldwide estate.
Specific circumstances will determine who has tax rights. However, South Africa and the UK have an Estate Duty agreement in place to avoid double taxation.
There are several planning opportunities to mitigate inheritance tax, and specialist advice may be required.

What do I need to tell HMRC and SARS?

SARS

If you meet the ordinary residence test (i.e. SA is your permanent home) or the physical presence test, SARS will treat you as a tax resident, and you are then taxed on worldwide income from the date of your return.
You should notify SARS via e-filing or by visiting a branch.
If you have previously ceased tax residency, you should notify SARS of your return to reactivate your resident taxpayer status.
Depending on your income sources, you may need to register as a provisional taxpayer.

HMRC

You must tell HMRC if you leave the UK to live abroad permanently.
If you don’t usually submit a self-assessment, you will need to fill in a P85 form.
If you usually submit a self-assessment, you can inform HMRC through the residence section (SA109) of your self-assessment.

Due to the overwhelming response to our exclusive in-person or virtual consultations in March, we’re bringing them back. They are happening from 30 June - 4 July in London, Cape Town or virtually. Spots are free but limited, so book now to make sure you don’t miss out.