For the last year I have been working around Europe, but not resident in the UK. I have had the majority of my salary paid into a business account in Cypress. At the end of this year I am planning on returning to the UK. What will be the best way for me to bring my savings back into the UK while limiting my tax liability?
Secondly, once this money is here what kind of account or fund should I look at investing into given that I do not plan to touch to money for
2-3 years?Thanks.
As you were non-tax resident in the UK, any money moved into the UK will be taxed on the interest in a UK bank account at your highest marginal rate.
I'm not sure about the status of Cypress, but if you leave money offshore in say, Luxembourg or the Channel Islands, you could be liable to a withholding tax of 15% now - this means there is little difference between holding money onshore / offshore for many people.
It really depends on how much savings you have, and to what lengths you want to go to avoid paying any more tax than you need to.
Unless it is six figure amounts, the simplest solution would be to bring back the funds to the UK and invest them in tax-priviledged investment products such as ISAs and Investment Bonds. Possibly in low risk funds such as deposit/ fixed interest type funds if you don't want to risk your capital.
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