The clients never thought they would leave South Africa. They had been successful in business, and had worked with a leading Financial Planner to build a retirement portfolio with this parameter in mind.
But the children moved to London, married, and along came grandchildren, and the center of gravity changed. The choice was spend more time on overnight flights, or move to the Grandchildren –and the rain!
So, slightly apprehensively, they made the move.
Which would have been great, but now their tax, residence and investment position changed as well. And their completely legal offshore investments in US Dollars that had worked whilst in South Africa, simply didn’t work in the UK.
The position was made a little more complex in that there were still South African assets, in Rands, that needed looking after.
Fortunately, we know the Planner concerned, and were able to work with them in partnership. So, after a ‘transition’ process of moving assets to the UK, using every tax allowance possible, the outcome was:
- The initial ‘scary’ tax bill calculated by the UK tax consultant was greatly reduced
Future tax liability was reduced
As this was now a UK onshore portfolio, rather than an offshore portfolio, it was possible to reduce the ongoing charges on the investment portfolio
And, importantly, the client benefitted from ‘joined up’ advice that understood the multi-faceted nature of their assets, income and tax liabilities
They are largely cushioned against currency movements, as they have their assets and expenditure in the same currencies. This applies to the UK and South Africa
The portfolio pays them a monthly income – easier to budget!
The result? Safe, comfortable clients, who can focus on being grandparents, and spoiling the grandchildren.