A summary of yesterday’s UK Budget and its implications for expats.
A quirk in the income tax system means HMRC is wrongly overcharging people who make use of new rules to draw cash from pensions.
Recent figures show the Treasury banked £1.6bn in tax from the first year of the pension freedoms (April 2015-16), nearly double its initial estimate of £910m. The discrepancy could be explained by a low ratio of people reclaiming overpaid tax, compared to those who have made withdrawals, experts suggest. Learn more
There are some crucial misunderstandings amongst the British expat community when it comes to their understanding of domicile status and their tax position. These misconceptions could leave their loved ones financially exposed and could even cause trouble with HMRC if they are not paying the correct UK Tax.
UK Chancellor Philip Hammond delivered his first (and the last) Spring Budget on Wednesday 8th March 2017, which on the whole was a reasonably low key budget.
However, we got a curve ball in the form of the introduction of a charge on transfers to overseas pensions. We are working through the detail, but many UK pension transfers may now be subject to a 25% charge.
With Article 50 being triggered in the near future, will the new Autumn Budget bring a few more surprises?
Families could end up paying tens or even hundreds of thousands of pounds in tax through an ignorance of the rules which can prove costly.
Three fifths of people who face a potential IHT bill fail to realise their estate may be liable, according to a new survey by insurer Canada Life.
Many do not know how much they are likely to pay, with more than half saying they didn’t realise that IHT is charged at a hefty 40%.
We weren’t expecting too many financial planning surprises in yesterdays’s Autumn Statement – and we weren’t disappointed by the new Chancellor, Philip Hammond. Much of the focus was on infrastructure and unlike his predecessor there was no big reveal.
However, the amount you can save into a pension – once you have already taken some money out – has been slashed by the Government in a bid to clamp down on those seeking “double tax relief”.
The move will hit hundreds of thousands of people, aged 55 and over, who have used the new “pension freedoms” available since April 2015 and taken cash from their pension pots. Learn more
HM Revenue and Customs (HMRC) has taken a record £4.6 billion in inheritance tax (IHT) in 2015/16.
Inheritance tax receipts for the 12 months to February this year, published by the Office for National Statistics, show this year’s inheritance tax bill is a 21% increase from the £3.8 billion the tax office took in the previous year.
Despite the IHT threshold remaining at £325,000 since April 2009, increases in property prices means more individuals are being caught by the tax.