Many high net-worth South Africans own property offshore, particularly in the United Kingdom.
When owning an asset in a foreign jurisdiction, the investor in question should be au fait with the regulatory regime applicable to that asset. More specific to the topic of this post, in collaboration with our colleagues at Andersen in the UK, we provide guidance on The Register of Overseas Entities (ROE) which is linked to The Economic Crime (Transparency and Enforcement) Act 2022 which was passed by the UK Parliament in March 2022.
Many foreign jurisdictions, including the United Kingdom and the United states for example, have inheritance tax which is applicable to assets owned by non-residents. If these taxes are not factored into the analysis regarding the return that the asset will achieve, they could impact the economic outcomes of that investment.
In this ROE overview we set out some technical updates relevant to any South African owning property in the UK.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.