You don’t’ have to be a premier league footballer, a Formula ONE racing driver or lets face it a British Peer! UK expats can benefit from tax havens for their funds and their pensions too. Have a look at an interesting Daily Telegraph article. http://bit.ly/cBEGDM
You may not want to hear it but the first thing to remember is to remember you may come back! Talk to many expats abroad and they’ve probably moved abroad somewhere else before. Don’t burn bridges; pay owed taxes and parking fines. This isn’t so much as a comprehensive checklist, I’m sure you have one but this is a list of the most essential but overlooked “todo” items.
Is there any point in opening an offshore savings account? This seems to be a big question for many people leaving the UK. Post emigration many expats continue to use the British banking system, in part due to familiarity and recourse for any discrepancies or queries that may occur with their bank account. However, this decision has to offset with the substantial benefits that can be realised once you lose your tax residency status in the UK from even the simplest form of offshore savings account.
You can also save offshore for your pension – and you can do so through a more conventional offshore pension plan such as QROPS. The offshore savings and investment paradigm has dramatically changed in recent years. Its no longer seen as slightly dodgy to have offshore accounts in fact expats who don’t are seen as behind the times.
In essence, to be free from the rules and restrictions associated with UK pensions after five complete tax years of non-residence. Then benefits are aplenty! Such as QROPS benefits on death are generally free from tax contributing to a substantial tax saving. Some QROPS enable a much higher level of income to be drawn at a lower tax rate. UK pension schemes restrict the lump sum that can be taken to 25% of the fund; many QROPS schemes do not have this restriction. QROPS generally do not have investment restrictions and allow the use of an investment manager of your choice. The list goes on, expats make sure you don’t miss out.
