There are many UK citizens who work and live abroad nowadays. Many of them take advantage of offshore tax planning opportunities. This is a wise decision for those who spend many years working overseas. In addition, there are also people who need expatriate tax planning to avoid paying too much in taxes.
Non domicile status is a great choice for people who decide to move out of the United Kingdom permanently. Doing so makes them exempted from inheritance tax for their assets abroad. However, they may only qualify for this status if they are able to prove their intention to live permanently in another country.
• Non-UK Resident
Another option expatriates can take advantage of is to become non-UK residents. They must inform the UK government of their non-residency status. They should make sure that they are able to maintain this status for a long time. Doing so opens the opportunity for them to be exempt from paying taxes for income and capital gains earned abroad.
However, it is always best to consult offshore tax planning professionals before opting for this route. This is mainly because there are frequent changes in UK Non-Residency tax laws. The laws make expat tax affairs more complicated for everyone. Fortunately, good offshore tax advice may simplify the process.
• CGT Exemptions
Non UK residents may also take advantage of CGT exemptions. However, they can only qualify for this exemption when they have gained assets that are not related to any businesses in the UK. Additionally, this can only happen after they are away from the country for more than about five years. Another route is to transfer these assets to family members and controlled companies. With this, expatriates may also be eligible for the exemption.
• Overseas Treaty Residence
Individuals may establish their overseas residences as their permanent homes. This means they will be using these foreign residences as their family bases. This will also mean that they no longer have UK residency. They can be eligible for tax exemption privileges.
• UK Resident Spouses
Expats with spouses who hold UK residency can make use of this status to be free from paying taxes in the UK. They may transfer their assets into their spouses’ names. Doing so will allow them to enjoy non-taxable inter-spouse transfers.
Getting Offshore Tax Advice
Good expat tax advice can help individuals pay less in income tax and avoid the liabilities. Tax experts are the best source of help they can get. With this, people can keep a bigger portion of their income even after paying for these services. These experts can help them maintain property in the UK and businesses that are connected to the country without the heavy taxes.
Learn About Expat Tax Planning
Individuals who want to start their expat tax planning should do some research first. Although there are professionals who can guide them along the way, it is smart to have at least some background in expat tax planning. Doing so will help them save a significant amount of money because they do not need lengthy tax planning explanations from the experts. They can already formulate questions to ask, and they won’t have a hard time understanding the process.
Whichoffshore provide professional expatriate information on QROPS pensions and offshore tax in order to help British expatriate make the most of their money. For more information, please visit - http://www.whichoffshore.com/Subscribe to our Newsletter