Inheritance Tax (IHT) is charged by HMRC on a person’s assets and estate when they pass away. Unfortunately, it is usually too late at that point to make any financial decisions and to mitigate the 40% inheritance tax liability that is due on your assets (with some exceptions).
If you are a UK resident but live, work or generate income in a country other than the UK, you may need to familiarise yourself with the Double Taxation Agreement (DTA).
Did you know that your UK residence and domicile status impacts how much UK tax you are liable to pay? Not only will maintaining a UK non-resident status affect your UK tax exposure, so too does the date you decide to return and become a UK resident again.
RDR3 was a Guidance Note drafted by the UK HMRC (HM Revenue and Customs) regarding the Statutory Residence Test (SRT). Prior to its withdrawal from the HMRC website in October 2019, this helped to decide whether a person should be taxed as a UK resident or a non-UK resident by determining a person’s residence status.
Over the years tax evasion – the practice of actively and purposely escaping paying any tax due – has been closely monitored. Countries and tax authorities have battled to target and catch those who are undertaking any illegal practices, especially in territories which have become notorious for tax evasion.
For British expatriates, or those spending a significant period of time overseas, the issue of residence is an important topic. Simply moving abroad to avoid UK tax is an outdated concept, and recently those wanting to adopt or maintain non-resident status have been scrutinised.
The Statutory Residence Test (SRT) was introduced on 6 April 2013 and sets out a series of tests and rules that are used to establish an individual’s UK tax residency status. Understanding your tax residency is extremely important as this will help calculate the income and gains you need to report to HM Revenue and Customs.
For an individual who has moved overseas and has acquired UK pension benefits, transferring their UK pension to a QROPS can offer flexibility, alongside other potential tax and currency advantages. That said, a QROPS is by no means a one-size-fits-all solution.
After working or living abroad, sooner or later you may decide that you want to return to the UK. It can be a busy time with factors to consider such as, securing employment, looking for a new home and shipping your personal goods, so tax planning can often be bumped down the priority list.
Finding a specialist financial adviser can be difficult, especially if you are an expatriate. You need someone not only competent in UK finance and tax law but also understands the intricacies of double taxation agreements, wills and inheritance tax internationally.
A SIPP, or self-invested personal pension, is the name given to a UK government-approved personal pension scheme – which allows individuals to make their own investment decisions from the full range of investments approved by HM Revenue and Customs.
Since 2006, QROPS have been a useful tax tool for those planning to leave the UK, or those who already live overseas. At their heart QROPS enable a UK pension to be moved into an overseas pension scheme, usually for favourable tax reasons.
A Qualifying Recognised Overseas Pension Scheme (QROPS) is a useful retirement option for those living, or planning to live, overseas. Yet, as with all financial planning tools, there are a handful of rules which are useful to understand when considering moving your pension pot to a QROPS.
A Qualifying Recognised Overseas Pension Scheme (QROPS) is a pension scheme established outside of the UK which meets certain HMRC requirements allowing it to receive transfers in from UK registered pensions.
It can be concerning to note that your QROPS isn’t growing. Although it’s a common query, a simple fact usually explains things – you are likely to be paying too much for your QROPS plan.
Environmental, Social and Governance (ESG) investing is an increasingly popular investment approach. With growing awareness of climate change, global responsibilities, and social issues, investing in companies which act responsibly and prioritise making the economy cleaner, safer and healthier is an important consideration for many investors.
The end of a marriage or civil partnership is likely to be an emotional and stressful time for everyone involved. Part of the divorce process usually focuses on the practicalities, such as carving up the matrimonial assets into two separate households, making arrangements for any children and trying to maintain a similar lifestyle to that enjoyed before the separation.
Nobody likes to think about writing their will, but if you have assets in more than one country you may need a will for each jurisdiction in which they are located. Laws governing an expat’s property and estate overseas are likely to be different to the laws of the country in which they are legally domiciled.
The first question many of our clients ask us is “Why do I need a Will?” The assumption made is that our assets will pass to our loved ones anyway. For some people, the gamble of not completing a Will might well pay off, but that will depend upon the assets that they own, their circumstances and who they want the funds to pass to.
If you’re an expat working and/or living abroad and you want to buy a property in the UK with a mortgage, there are several elements you need to be aware of when arranging finance.