Saving Local Tax And Investing In Sterling

23.09.11

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.

The usual advice for British expatriates is to match the currency of their assets to that of their liabilities, so that if you live in the Eurozone your savings and investments would

The usual advice for British expatriates is to match the currency of their assets to that of their liabilities, so that if you live in the Eurozone your savings and investments would be in Euros. This reduces both currency exchange risk and costs.

You may also have other considerations however, for example:

? You are concerned about the Euro

? You will return to the UK in the future

? Your heirs are in the UK

You also need to consider how your savings and investments are taxed in your country of residence. Many people are uncertain whether they should invest in Euros in European authorised arrangements to get the local tax planning benefits, or keep their investments in Sterling and risk paying more tax than necessary.

It is a misconception that if you transfer funds into European authorised investment vehicles you need to transfer into Euros. Although it is the case with some products, it is certainly not the case with all of them and you can elect which of the major currencies to be invested in.

It is therefore possible to have a tax plan where your investments are denominated in Sterling at the same time as aiming to save tax locally ? the best of both worlds.

Effective tax planning is all about flexibility and adaptability, so you should choose arrangements where you can switch between currencies if necessary. This would, for example, give you the option to convert to Euros when you have more confidence in the currency or, if you are invested in Euros, switch to Sterling when you return to the UK.

Blevins Franks have been providing integrated tax planning and wealth management since 1975. The strategies we recommend are always based on your personal circumstances, objectives and concerns.

The 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; an individual must take 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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