AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of...
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Transcript of AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of...
![Page 1: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/1.jpg)
AZURE TAX CONSULTING
Top Ten UK Tax Tips for Expats16th September 2009
The BritishChamber of Commerce
Debbie Annells
Managing Director
AzureTax Ltd
Chartered Tax Advisor
![Page 2: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/2.jpg)
AZURE TAX CONSULTING
![Page 3: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/3.jpg)
AZURE TAX CONSULTING
1. Filing UK Tax Returns
2. Non UK domicile status
3. Inheritance tax planning
4. Nominate life insurance / pension policies
5. Cheapest investment vehicles
6. Location of assets
7. Owning UK property
8. UK National Insurance
9. Pensions – QROPS Schemes
10. Correctly drafted Wills
Top Ten UK Tax Tips
![Page 4: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/4.jpg)
AZURE TAX CONSULTING
Filing UK Tax Returns
• On-line filing – residents – non residents
• UK Government Gateway
• Non residence forms as part of UK ITR – tick correct boxes!
• New HMRC6 Booklet replaces IR20 on “Residence and Domicile”
![Page 5: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/5.jpg)
AZURE TAX CONSULTING
Non UK domicile status
• Affidavit / statement of non UK domicile status
• “Test trusts” not necessary!
• New statement in non residence forms as part of UK ITR− Tick correct boxes− State year you become non UK dom
![Page 6: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/6.jpg)
AZURE TAX CONSULTING
Inheritance Tax Planning
• IHT Nil rate band, each person. 2006 - 2007 £285,000 2007 - 2008 £300,000 2008 - 2009 £312,000 2009 - 2010 £325,000
2010 - 2011 £350,000
• Transferable nil rate bands for spouses
• UK pension funds balances over limits come within IHT
• Remember FOTRA securities
![Page 7: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/7.jpg)
AZURE TAX CONSULTING
Nominate life insurance / pension policies
• Check nominations
• Works for non doms / UK doms
• UK policies or non UK policies
![Page 8: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/8.jpg)
AZURE TAX CONSULTING
Cheapest investment vehicles
• Insurance wrapper
− most expensive custody arrangements?
− typically costs 7%!
• Company / custody accounts usually cheaper
• Trusts can usually open custody accounts easily.
![Page 9: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/9.jpg)
AZURE TAX CONSULTING
Location of assets
• Check location. Is it a high tax location?
• Can asset location be moved?
![Page 10: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/10.jpg)
AZURE TAX CONSULTING
Owning UK property
• Joint ownership (“joint tenancy”)
• Personal ownership (“tenants in common”)
• When to own through vehicles?
− offshore company
− Trust arrangement
![Page 11: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/11.jpg)
AZURE TAX CONSULTING
UK National Insurance
• Class 2 or 3.
Doesn’t usually affect non dom status
![Page 12: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/12.jpg)
AZURE TAX CONSULTING
Pensions – QROPS Schemes
• QROPS transfers no longer possible to HK or Singapore
(since Dec08)
![Page 13: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/13.jpg)
AZURE TAX CONSULTING
Lifetime trusts
• Still possible despite 2006 Finance Act impact on trusts
• Non dom spouse?
• Nominate life insurances?
• To use up IHT nil rate band every 7years
![Page 14: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/14.jpg)
AZURE TAX CONSULTING
Correctly drafted Wills
• Both spouses should have Wills!
• If non UK domicile claimed – state in preamble
• Old Wills may affect transferable nil rate IHT band usage
• Most Wills need be redone often in Asia
![Page 15: AZURE TAX CONSULTING Top Ten UK Tax Tips for Expats 16 th September 2009 The British Chamber of Commerce Debbie Annells Managing Director AzureTax Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55141aa85503466d1a8b4578/html5/thumbnails/15.jpg)
AZURE TAX CONSULTING
Any Questions?