Budget 2014 Expats Could Lose UK Tax Allowance
Published / Last Updated on 24/03/2014
Budget 2014 – Expats Could Lose UK Tax Allowance
Expats UK Personal Tax Allowance
The government will consult on the possibility of people not resident in the UK losing their personal allowance. This means it is not law yet.
How this works?
Currently a British National or EU National with e.g. Rental Property income is entitled to a full UK personal allowance (£10,000 with effect from 6th April 2014).
The means that provided expats are living within the EU or outside the EU but within a country with a close tax and social security agreement with the UK, you get to keep your personal allowance on the UK and can “earn” up to £10,000 per year from the UK tax free.
The consultation may look to wipe this out.
Expats with UK property be warned – if you have property in the UK you may lose your personal allowance in the future.
International Pension Transfer QNUPS
The government will consult on ways to give equivalent treatment to QNUPS and to UK registered pension schemes to remove opportunities to avoid Inheritance Tax (IHT).
Currently, many people who move overseas transfer their pensions overseas to provide greater freedom.
It enables expats access to funds and indeed avoid additional tax charges on early death if they are using pension drawdown rather than the traditional annuity.
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