South African Expat Will Guide: Living in the UK (2026)

The UK is home to an estimated 200,000 South African-born residents — one of the largest SA diaspora communities in any single country. Many South Africans in the UK remain financially connected to South Africa through property, investments, business interests, and family. This dual-country financial footprint creates a complex estate planning challenge: the potential for two countries' death taxes to apply simultaneously, with no treaty between them to prevent double-taxation.

This guide explains how SA Estate Duty and UK Inheritance Tax interact, how situs rules determine which assets are taxed where, and the practical steps South Africans in the UK should take to protect their estates.

South African Estate Duty: The Basics

South Africa levies Estate Duty under the Estate Duty Act. The tax applies to the estate of every person who was ordinarily resident in South Africa at the time of death, as well as to non-residents' SA-situs assets.

Rates and Abatements

• Rate: 20% on the dutiable estate up to R30 million; 25% on the dutiable estate above R30 million
• Abatement: R3.5 million per person (2026 figure — subject to legislative change)
• Spousal exemption: Property passing to a surviving South African-resident spouse is generally exempt from Estate Duty. Any unused abatement of the first spouse to die may be transferred to the surviving spouse's estate.
• Deemed property: Life insurance proceeds may be included in the estate depending on policy structure

The Critical Question: Are You SA Tax Resident?

SA Estate Duty on worldwide assets applies if you are a South African tax resident — specifically, if you are ordinarily resident in South Africa. Being ordinarily resident means South Africa is the place you consider your "real home" — the place you return to after your travels.

Many South Africans in the UK remain ordinarily resident in South Africa in SARS's view, even after years abroad, because they maintain ties (property, family, intent to return). If SARS considers you SA-ordinarily-resident at death, SA Estate Duty applies to your worldwide estate — including your UK property, UK investments, and UK pension.

UK Inheritance Tax: The Domicile Question Again

UK IHT applies to the worldwide assets of UK-domiciled individuals. A South African who has lived in the UK for an extended period may have acquired a UK domicile of choice — particularly if they have settled permanently with no intention of returning to South Africa. If you are UK-domiciled, UK IHT at 40% applies to your worldwide assets above the nil-rate band (£325,000 plus the residence nil-rate band).

The Dual Domicile Risk

Here is where South African expats in the UK face a uniquely uncomfortable scenario: you may be considered ordinarily resident in South Africa by SARS (for SA Estate Duty purposes) and domiciled in the UK by HMRC (for UK IHT purposes) simultaneously. There is no UK-SA estate tax treaty, so there is no formal mechanism for credit relief. Both taxes could apply to the same assets.

In practice, whether this double-imposition actually occurs depends on the facts of each case. But the risk is real, and it makes specialist cross-border tax advice essential for South Africans with significant assets in both countries.

Situs Rules: Which Assets Are Taxed Where

Regardless of domicile or tax residency, SA Estate Duty applies to SA-situs assets held by non-residents. The situs of common asset types:

• SA immoveable property (real estate): SA situs
• SA bank accounts: SA situs
• SA-listed shares and investments: SA situs
• SA-registered vehicles: SA situs
• UK immoveable property: UK situs
• UK bank accounts: UK situs (if held at a UK branch)
• UK government bonds/gilts: UK situs

For a South African in the UK who is UK-domiciled but not SA ordinarily resident, SA Estate Duty applies only to SA-situs assets, while UK IHT applies to worldwide assets (including SA assets). Credit may be available under UK domestic rules for tax paid in a foreign country on the same assets, but the mechanics are complex.

South African Succession Law and Will Requirements

South African succession law is governed primarily by the Wills Act 7 of 1953. A valid SA will must:

• Be in writing
• Be signed by the testator at the end of the will
• Be signed by two competent witnesses present at the same time
• Neither witness may be a beneficiary or the spouse of a beneficiary

South Africa also has the Intestate Succession Act 81 of 1987, which governs distribution if no valid will exists. Under intestacy, a surviving spouse and children share the estate — but the distribution may not match your intentions, and SA intestacy has complex rules for blended families.

Maintaining a Valid SA Will from the UK

Many South Africans in the UK have a SA will that was valid when they left South Africa, but which may be outdated — covering property they no longer own, naming executors who have died, or failing to address UK assets. Reviewing and updating your SA will is essential, even from abroad.

Practical Steps for South Africans in the UK

1. Clarify your SA tax residency status with a specialist SA tax adviser — are you still ordinarily resident for SARS purposes?
2. Clarify your UK domicile status with a UK tax adviser — have you acquired UK domicile of choice?
3. Create or update your SA will for your South African assets using LegalWills.co.za or a SA-admitted attorney.
4. Create or update your UK will for your UK assets — ensure it doesn't revoke the SA will.
5. Review SA Exchange Control implications if you have funds offshore — SA Exchange Control regulations affect how assets can be moved and may affect estate planning.
6. Nominate beneficiaries on SA retirement annuities, RAs, and employer group life schemes — these don't pass under your will.
7. Get cross-border tax advice on the SA-UK dual tax exposure and available mitigation strategies.

Frequently Asked Questions