In brief (TL;DR): The SDA covers transfers up to
R2 million per person per year with no SARS approval needed. The FIA adds another R10 million but requires an AIT from SARS first. A couple can move up to R24 million combined. Tell us the amount and we will confirm which route applies.
One of the most common questions we get from South Africans in the UK is a simple one: which allowance do I use?
The short answer is that it depends on how much you are moving and whether SARS needs to be involved before the transfer goes ahead. Here is how to think about it.
The SDA - simple, fast, no pre-approval needed
The Single Discretionary Allowance (SDA) is the easiest route. Every South African resident adult can transfer up to R2 million per calendar year offshore without any prior SARS sign-off. No application, no waiting, no approval letter - just the standard transfer documentation and a valid SA ID or passport.
This is the allowance that covers most regular transfers: monthly living expenses, gifts, once-off payments, small investments, and top-ups to your UK or EU account. In 2023, SARS introduced Approval International Transfer (AIT) as the single application route replacing the previous Foreign Investment Allowance and Emigration TCS application types. The TCS PIN still exists as the verification mechanism - once your AIT is approved, SARS issues a TCS PIN that the authorised dealer verifies before processing the transfer. WBForex prepares and submits the full AIT application to SARS on your behalf - you do not need to navigate the eFiling process yourself.
SARS turnaround on AIT applications typically takes a few weeks, though this varies. Once approval is in place, the actual currency conversion and transfer happen quickly.
The FIA is designed for larger once-off transfers: property purchases, significant offshore investments, large savings remittances, and amounts that go beyond what the SDA covers in a given year.
Can you use both in the same year?
Yes. The SDA and FIA are separate mechanisms and you can use both in the same calendar year. A single person could therefore move up to R12 million in a calendar year - R2 million under the SDA (no pre-approval) plus R10 million under the FIA (with AIT approval).
A couple, both SA residents with their own allowances, can potentially move up to R24 million between them.
What about amounts above R12 million?
Transfers above the combined R12 million ceiling are possible but require separate approval from the South African Reserve Bank's Financial Surveillance Department (SARB FinSurv), supported by a SARS Letter of Compliance. This is assessed case by case and typically applies to significant inheritance transfers, large property sale proceeds, or the externalisation of substantial wealth.
WBForex manages this process end-to-end where applicable.
What if you are no longer a South African tax resident?
If you have formally ceased your SA tax residency - through the tax emigration process - the standard SDA and FIA rules no longer apply to you in the same way. Non-residents can often remit funds with different documentation requirements, which vary depending on the source and nature of the funds. Get in touch and we will walk you through exactly what applies to your situation.
Tell us how much you want to move and roughly when. We will come back to you the same day with a clear answer on which allowance applies, what documents you need, and how long the process is likely to take. No forms before you are ready - just a conversation.
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