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.

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

AZURE TAX CONSULTING

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

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”

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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

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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

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Nominate life insurance / pension policies

• Check nominations

• Works for non doms / UK doms

• UK policies or non UK policies

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Cheapest investment vehicles

• Insurance wrapper

− most expensive custody arrangements?

− typically costs 7%!

• Company / custody accounts usually cheaper

• Trusts can usually open custody accounts easily.

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Location of assets

• Check location. Is it a high tax location?

• Can asset location be moved?

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Owning UK property

• Joint ownership (“joint tenancy”)

• Personal ownership (“tenants in common”)

• When to own through vehicles?

− offshore company

− Trust arrangement

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UK National Insurance

• Class 2 or 3.

Doesn’t usually affect non dom status

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Pensions – QROPS Schemes

• QROPS transfers no longer possible to HK or Singapore

(since Dec08)

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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

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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

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Any Questions?