Advertising Feature
A LESS TAXING LIFE IN THE SUN
According to latest figures, an estimated 350,000 people left the UK in 2011 in search of a fresh start abroad. The most popular European destinations include Spain, France and Germany (source: Home Office, Emigration from the UK Research Report 68, November 2012) For most people, tax havens evoke images of luxury yachts and champagne. But you do not have to be a formula one racing champion to benefit from tax mitigation nor do you have to move to exclusive locations such as Monaco or the British Virgin Islands. With some careful planning there could be significant savings to be made on income tax, capital gains tax and inheritance tax in countries that do not appear to be exotic offshore tax havens. Popular European destinations have their tax advantages too. Unfortunately tax is a bug bear most of us have to face - wherever we live - and it is paramount that if you are considering living overseas you should seek specialist tax advice otherwise it could end up costing you much more than you bargained for. The general rule of thumb is that you will pay UK income tax and capital gains tax as long as you are a UK resident. Although still to receive Royal Assent and thus subject to amendment, a new Statutory Residence Test (SRT) came into force from the start of the 2013/14 tax year which introduced a
number of key tests to assess an individual’s residence. It is no longer just the number of days spent in the UK that is considered when determining residency although it is still an important factor. If you meet any one of the criteria within the automatic residence test you will be deemed a UK resident. There are a number of criteria including spending 183 days or more in the UK per tax year or having a home in the UK for more than 90 days and living in that home on at least 30 days during that tax year. In addition there are automatic overseas tests and sufficient ties tests. The ties that are considered for these purposes are family, accommodation, work, the country in which you were present at midnight for the greatest number of days in a tax year and a 90 day tie which exists if you have spent more than 90 days in the UK in either or both of the previous 2 tax years. You may be eligible for the tax year to be split into 2 parts when coming to, or departing from, the UK. The chances are that wherever you lay your hat you will have to pay some tax. But just as in the UK specialists help millions of people pay less tax than they might otherwise, so too can experts who understand overseas tax and residency rules. The overriding message is simple: get expert advice. It could save you money.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested. The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. Contributed by Warren Hadlow & Medwyn Edwards, Hadlow Edwards Wealth Management Limited. Telephone: 0800 652 8175 – e-mail hadlow.edwards@sjpp.co.uk Hadlow Edwards Wealth Management Limited represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products