Restrictions on exporting foreign currency from Zimbabwe and MTBs

Just sharing this out of interest, it is only 1 DWP decision (the Pension Service) and I am not aware of any official guidance that has been issued.

I have a client with a property in Zimbabwe which has been treated as capital with a consequent reduction in GPC. Since last year Zimbabwe has introduced ‘convertible bond notes’ to replace the Zimbabwean dollar (which disappeared due to hyperinflation in 2009) and restrictions on access to and export of foreign currency. We have been arguing that the value of the property should be disregarded as if it was sold it would have to be sold in bond notes which have no value outside of Zim or foreign currency which would not be allowed to leave the country.

Anyway, the Pension Service has finally accepted this “due to the economic situation in Zimbabwe and the restrictions on transferring money out of the country at this point in time” and agreed to disregard the value of the house from August 16 (not sure why that date yet).

May be something worth pursuing for other MTBs too if you have clients in this situation.