Donations tax question

Corelli said:
Yes they may have to pay UK donations tax (not sure if they have but I am sure). Otherwise it can be seen as money laundering or a bribe.

It depends why they buy you a house, and what your connection is. But looking at it, it will raise a lot of red flags.
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There's no UK donations tax.
 
Do also consider...
1. If you are a foreigner can own property in that country. In some countries its not allowed. (Thailand, Indonesia and China as an example - you have to lease it from a developer).
2. Tax is based on residency
3. The reason why they are buying you a house. We have strict money laundering laws and so do they. So questions will be asked as to why. I know we used to have any amounts over 24999 but now its 49999 they will be asking questions. But this will be based on their country.

If your story is straight and you follow the donation tax rules, etc. Then there shouldnt be a problem. If its inherited the estate pays the tax and transfer and not you.
 
rh1 said:
Some time ago on blouberg beach, I saw an old taanie on the beach. A foreign young man (Nigerian/Congolese etc) looked at her, began to strip to his underwear and went to talk to her. I could her an UK accent. And they seem to hit it off.

Now he is getting a house for free.
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Happens all the time, well not the stripping. But many elderly old ladies and gentlemen never had kids, so they tend to leave it for someone else. I know my neighbour is giving her house to a kid she used to babysit when he was small. His mother even flew her to China for holidays etc. She felt its the right thing to do. She doesnt have kids.
 
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Sinbad said:
So someone in Aus wants to buy someone in SA a house in the UK?

man, I need friends/family like this.
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If your family is good then happens quite often. My one distant cousin inherited from his aunt, and his direct family got together. He paid off all the bonds of the family that had it. And bought a property also in the UK for anyone to study or go on holiday there. But that family is very close. They keep the money always within the family and help each other out during tough times. Many families dont and only think about themselves, compared to growing the wealth of the family together.
 
chopsky said:
Yo!

Question for those in the know...

If a person (foreign) purchases a UK property for a South African resident, do they need to pay SARS a % as donations tax?

Cheers!
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You will not be taxed in South Africa on the receipt of the property, under donations tax. The person making the donation should look at their country's taxation laws on donations. But once the home is in your name, it becomes apart of your estate, and if you were to sell it, it could attract capital gains tax.
 
Corelli said:
Only if they are non-resident. If they have residency here, they will be paying tax. Its based on your residency and not your citizenship.
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Well, since we're nitpicking - then only if they have tax residency. A residency permit by itself wouldn't make them tax resident.
 
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