Question:
How much money could we take with us if we returned to the UK?

I am a South African national with a British passport and my husband is British with residency in South Africa.

Answer:
Moving overseas is not just about how much money you can take offshore. There are many other aspects to consider. There are several ways to move overseas and each has its own set of legal and financial requirements.

I am not an expert on this subject and you should seek advice from a consultant who specialises in this area. Got to www.maitlandgroup.co.za for advice on how to go about this.

Also, if you log onto www.reservebank.co.za and look at their exchange control manual you will find comprehensive information about what is required from you.

Here are some basic guidelines:

Qualification for emigration facilities. People regarded as South African residents for exchange control purposes who are leaving the Republic to take up permanent residence in any country outside the Common Monetary Area (CMA) may, before departure, apply to an authorised dealer for emigration facilities.

Applicants must complete form M.P.336(b) (an application for foreign capital allowance) furnishing full details of the nature and value of their assets, both in and outside the RSA as well as similar information pertaining to any liabilities which will be outstanding in the Republic after their departure.

What emigrants qualify for. A cash allowance (equal to a travel allowance), a foreign capital allowance and the export of certain items are permitted. This can be up to R160 000 for a single person while a family unit is allowed R160 000 per adult and R50 000 per child under 12 years.

Foreign capital allowance. A single person is allowed up to R2-million and a family unit up to R4-million. Emigrants can, on application, request to transfer blocked assets in excess of the limit of R4-million per family unit or R2-million per single person, subject to an exiting schedule, at the discretion of the Exchange Control Department of the South African Reserve Bank and an exit charge of 10 percent of the amount.

People who have emigrated, but have not fully utilised the current authorised foreign capital allowance, may be accorded additional capital transfers, provided the total amount availed of does not exceed the current limits.

A widow or widower with dependants may also be regarded as a family unit. The aforementioned allowances may be provided irrespective of the destination of the emigrant.

Export of household and personal effects as well as motor vehicles may be attested within the overall insured value of R1-million per family unit or single person. This covers the export of things like cars, caravans, trailers, motorcycles, stamps and coins (excluding coins that are legal tender in the Republic).

Emigrating will officially allow you to take everything out of South Africa with relative ease. However, it may not be the smartest thing to do if you are not absolutely sure that you are going to stay. It may prevent you from returning, if things don’t work out.

Another option is to simply relocate without going through the motions of emigration.

If there is no money to transfer as a settling-in allowance, because your assets are no more than those needed for air fares and travel allowances, there is probably no reason to go through formal emigration.

You could go as a temporary non-resident. It leaves your citizenship residence rights intact and you are not subject to the investment restrictions that apply to blocked Rands. It can allow you exchange control permission to remit capital and income overseas.

As you can see there is no easy path and getting the right advice from experts may well be worth the fees they charge.