Brits abroad

Last year we looked at some of the main components of professional financial planning.  These included estate and tax planning, investment management, the need for regular reviews and, of course, what to look for in a financial adviser.

Over the next few months we will be looking at how the various aspects of financial planning are combined and applied in tailoring a personalised solution for particular nationalities. We begin this series with an article for UK citizens.

The key to freedom
British citizens are able to avoid some of their liability to UK taxes by simply ‘selling up’ and buying a one-way plane ticket. This is because most UK lifetime taxes are based on where you live, not your citizenship. 

But under UK tax law, any income which arises in the UK - whether from bank deposits, UK property or dividends from UK shares and funds - is taxable, regardless of where the owner is living or his or her citizenship.

Remember too that when someone dies with UK assets, those assets are subject to inheritance tax.
So from a tax planning perspective restructuring assets away from the UK is a key consideration.

Offshore funds provide investors with a much wider choice of investments and will also grow tax free. There are several options available to expatriates for holding your investments offshore. A professionally qualified financial adviser can recommend the one that provides you with the safest, most convenient and best value solution for your circumstances.

Professional expatriates
Despite the recent changes to the UK pension law, those living and working in the UK are given relatively modest limits to what they can invest tax free when saving for retirement. At retirement, most of a British retirement fund is still subject to taxation, wherever you happen to be living and regardless of your nationality.

By investing offshore in a recognised international financial centre, British expatriates can invest unlimited tax free amounts.  You can also take your retirement money when you choose and free from tax.

For working expatriates, a relatively low cost of living and generous remuneration packages provide disposable incomes far greater than would normally be achievable in the UK. With proper planning this means that you are in a position to be able to retire comfortably, wherever you choose to live; even in the UK.

Property planning

To Read More please visit  http://www.property-report.com/archives.php?id=777

‘Richard Colburn is Managing Director of Sterling Assets, a specialist wealth management consultancy serving expats in Thailand and the Far East’.

 www.sterling-assets.com