Tax Avoidance When Retiring Abroad

You cannot escape UK income tax by retiring abroad - your pension provider will just deduct tax at source before paying you. There are numerous saving and deposit schemes for ex-pats that pay interest gross, but you may still be subject to tax in your new country of residence. Those well-known tax havens like Monaco, Cayman and Bermuda have strict immigration restriction, and basically only allow millionaires to take up residence. Escaping UK tax is only part of the story - what about health care (payable and costly outside EU), property prices, rents, language, climate as well as immigration law. And you still have UK inheritance tax and capital gains tax to worry about as UK domiciled (presumably).

Alec

One of the biggest risks is likely to be exchange rate changes, so you need to think about whether you want this lump sum in your final resting place or back in blighty where in the medium to long term I suspect the pound might go down (to your disadvantage) - but I might be wrong.

pension, bearing

but could

as much as

Is that because the pension provider is using "the default setting" in as much as its easier for "him" to just tax everyone, or is it done to government guidelines - A bit like The Hotel California....... "you can check out any time you like, but you can NEVER leave"?

There are numerous saving

subject to

I'm not against paying some form of tax in my country of domicile. What sticks in my throat is having to pay it to the UK !!!!!!

Those well-known tax

I guess this is where the "percentage game" comes into play Looking out of my window the other week at the cold, wet miserable scene did nothing to lift the spirit Property prices - about a quarter, rent about a third in the places i am looking at. Immigration laws are a liitle more stringent than the UK, but i qualify for visas, etc easily based on income alone, so thats no real problem NHS and Social Security in the UK are the biggest deciding factor in my decision to leave, tbh, so if i put what i am paying now for a non existant service here, into a private scheme where i intend to live than i will be better off I'm not sure what you mean by capital gains tax, as i have no capital here to speak of. Inheritence tax i am not worried about........i will be dead for it to be needing paying ;)

My pension alone would give me a better living standard than in the UK at the present time, so the investments would just be for "topping up" purposes should the need arise, and for "living la dolce vita" should it NOT be needed for topping up Thats not taking into consideration all the stealth taxes in the pipeline Rebanding of property bands, road pricing, green taxes of all sorts, etc, etc The list goes on, to the point where i wouldnt be able to afford to live here anyway (its to the point now where i feel pissed off reading what i have just typed!!!) Its just a case, as you say, of where to put the lump sum I dont like the idea of moving it out of the relative safety of the UK, tbh I am looking towards offshore, but with a UK based bank, perhaps?

T-L

I don't know how much sense you'll get out of them, but the people to speak to as HMRC are:

HMRC HMIT Public Department 2 (MU2) Ty Glas Llanishen Cardiff CF14 5XS Tel: 0845 300 3949

Also, this article may be of interest to you

Is that a contradiction ? Do you understand the risks of uk based banks offshore accounts ?

Also remember that it doesnt have to be all in one place.

So 200k could be split:

100k = 33kx3 boring UK building society deposits (3x33k to get maximum protection) 100k to the country of you new resisence.

Some idea of your new country (it sounds like you have your eye on somewhere) might generate some ideas....

If he leaves with the intention of never coming back, he would normally be taken to be changing his domicile. There is a helpful informal definition of domicile as "where you expect to die".

That sorts out IHT (which is chargeable in your country of domicile), but what about CGT? Isn't that tied to "ordinary residence" rather than domicile?

It needs to be more than that, mere intention is insufficient. Cutting off all links from UK and actually moving abroad is a start.

"Miss L. Toe" wrote in news:45dac4df$0$97260$ snipped-for-privacy@authen.yellow.readfreenews.net:

I heard that St Kitts has no income tax and is a former uk colony, so the legal system and so on will be familiar. I believe you can arrange to take your pension there free of UK tax if you can become a resident. I also heard that Belize has a retirement programme involving low taxes. Theres lots of info on the web - a quick search turned up

Both these places use English, pero como te gusta las tamales, pues, no importa!

I am not an expert, so please check carefully for yourself and please let the group / me know how you get on.

Well I hope your new domicile provides free anti-depressants because you sure sound as if you need them. Perhaps a cheaper alternative would be to stop reading the Daily Mail; that'll provide an immediate tonic.