Expatriates Urged To Review Sources Of UK Income Amid Tax Raid Plans

29.08.14

Please note that this article is over six months old. While Blevins Franks takes care to make sure that information is accurate on the date of publication, some content may change over time. You should not rely on the accuracy of legislation and tax information in this article; take professional advice for your circumstances.

An article by The Telegraph advises UK nationals living abroad about the proposed removal of the UK personal tax allowance.

An article by Elizabeth Roberts, published on The Telegraph’s website on 15th August and in the World Edition of 20th to 26th August, advises UK nationals living abroad about the proposed removal of the UK personal tax allowance:

Expats facing the possibility of losing their personal allowance under a tax raid proposed by George Osborne should not panic but look carefully at where their UK sources of income come from, according to experts.

There are around 175,000 non-resident landlords who live abroad who could be affected, as well as retirees.  

Many British expatriates should not pay more tax on their pension funds since most state and private pensions are only taxable in their country of residence.  However, those with government service pensions will be affected.

Speaking to The Telegraph, Jason Porter, Business Development Manager at Blevins Franks, advised:

Any taxes payable in the UK against rental income should be available for relief in the country of residence under the terms of the double tax treaty. But, as a UK government pension is only taxable in the UK, and not the country of residence, it is individuals in this scenario who will bear the brunt of the extra tax, without being able to relieve it elsewhere.

He added:

At this stage the proposals are in a period of consultation; any changes proposed will not take effect until at least the Budget in 2015, although it is more likely to be 2016. Given this, UK nationals living abroad should not panic, but should seek advice where the majority of their income comes from UK real estate and/or a UK government pension, as the consultation process unfolds.

You can read the full Telegraph article here – http://www.telegraph.co.uk/finance/personalfinance/expat-money/11031690/Expats-urged-to-review-sources-of-UK-income-amid-tax-raid-plans.html

Tax rates, scope and reliefs may change Tax information has been summarised; an individual is advised to seek personalised advice.

 

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

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