Viewing posts categorised under: BREXIT

Brussels Presentation – Should I transfer my pension out of the UK, or not?

By Spectrum IFA
This article is published on: 16th January 2018

Brexit.
A word that exploded onto the British lexicon almost three years ago and has refused to dissipate. Indeed, instead of disappearing into the shadows and reappearing every time the ruling party wishes to dangle a carrot (or stick) in front of the populace, it has remained in full view without a day or week going by without it being mentioned on the news, by the watercooler, at home amongst family, or debated amongst friends and experts alike.

What does it mean? To some, it is wrenching back sovereignty from the EU Overlords, to others, it is an unmitigated mistake. To some, it is the taking back control of the British borders and stemming the tide of immigrants, to others, it is an unmitigated mistake. What is sure, is that it means that the UK voted to leave the EU next March and the EU28 will become EU27.

Whilst the politicians discuss the terms on which they will work together in the future and untangle the ties of the past, what does it mean for you?

If you have worked in the UK and have a pension (or more) there, then the lack of clarity and swirling uncertainty surrounding Brexit undoubtedly has you concerned about your money; fortunately, we at The Spectrum IFA Group have a solution for you.

On Wednesday 7th February, we have invited leading industry experts to discuss the potential implications of Brexit on your money and more specifically any pensions that you have in the UK. This is a must attend event for anyone who has worked and has a pension in the UK. Our experts will discuss likely scenarios and provide solutions for your pension concerns and we will also have a local Belgian Tax Expert who will talk about the tax treatment of UK Pensions here. The evening will end with finger food and drinks and an opportunity to meet and greet our experts, advisers, and attendees.

Click below to confirm your attendance, and we look forward to meeting you at the Renaissance Hotel.

Yes, I would like to attend the presentation on Wednesday 7th February/

Will Brexit affect your plans to move to France?

By Derek Winsland
This article is published on: 4th October 2017

04.10.17

The performance of the UK government’s Brexit negotiators, Theresa May included, is giving rise to concerns amongst UK businesses, EU nationals living in UK and, of course, us living and working in the EU. Sterling continues to react daily to the actions and reactions on both sides of the negotiating table, and the general uncertainty that this causes conveys itself to people’s decision-making.

Over the last 15 months or so, I have been approached by a number of prospective new clients, most of whom are asking the same questions: “How will Brexit affect our plans to move to France” and “How will Brexit impact our desire to remain in France”. The honest answer to this (at the time of writing), is no-one yet knows and until something concrete comes out of the negotiations, this will remain the situation. My own belief is that some compromise will be cobbled together to allow some continued freedom of movement in exchange for access to the single market.

What we do know is that if you have aspirations to live in France, you will become resident for tax here and there is nothing more certain than taxes (apart from death of course). As a French tax resident, there are a number of different taxes you will become subject to. This is no different to the position in UK, indeed comparisons undertaken on behalf of a number of prospective ‘movers’ to France has shown only minor differences in tax payable for those people. The proviso used though was that those people put their financial house in order before moving to, and becoming resident in, France.

My Limoux colleague, Sue Regan in her last article, pointed out the pitfalls in assuming UK-based investments would serve the same purpose in France, and that the tax treatment of those investments in UK would transfer across the Channel to France. This is not the case, in fact holding and maintaining UK investments can and do result in nasty tax shocks for those ex-pats who wrongly believe investments like ISAs would be tax exempt in France.

Also, with the introduction of Common Reporting Standards, financial information is being shared across borders, so considering oneself to be hidden from the tax-man in France, whilst holding bank accounts and investments in UK, is delusory. If you have recently received a letter from your UK bank asking you to confirm your address, this is Common Reporting Standards in action; your bank will pass the information on to HMRC who in turn will share it with their French counterparts.

It is better to acknowledge that the ways of the past will not continue to hold true and that work needs to be done if you want to live in France and this includes re-structuring assets to make them French tax-efficient. The simplest way to approach this is to invite an independent financial adviser to carry out a financial review of your circumstances. He or she will put together a report of recommendations, to ensure your move to France will not result in tax shocks further down the line. All you have to do then, of course, is act on the recommendations.

If you feel you could be affected by this, or have personal or financial circumstances that you feel may benefit from a financial planning review, please contact me direct on the number below. You can also contact me by email at derek.winsland@spectrum-ifa.com or call our office in Limoux to make an appointment. Alternatively, I conduct a drop-in clinic most Fridays (holidays excepting), when you can pop in to speak to me. Our office telephone number is 04 68 31 14 10.

I look forward to seeing you soon.

The fight to keep our EU rights

By Gareth Horsfall
This article is published on: 25th September 2017

25.09.17

As Theresa May readied herself in Florence to deliver her BREXIT speech a small but energetic group of British expats gathered in the city to voice their opinions. The group, part of ‘British in Italy’ was lead by Spectrum’s Italian Manager Gareth Horsfall.

Gareth has been instrumental in building the groups membership and organised this peaceful protest in Florence.

The protest was organised to show solidarity for EU citizens in the UK as well as British citizens living in the EU. Gareth explains, “The motivation and reason for such activity is to fight to keep our EU acquired rights…those that could affect our freedom of movement in the future, the right to work in other EU states as an EU citizen, the right to have our qualifications recognised in our current EU state of residence and any that we may subsequently move to, the right to keep our healthcare rights and especially those of a lot of our pensioner clients who rely on it, the right to have our social security contributions taken into account from other EU states and all the interconnected rights that go with these things.”

Outside the impressive 14th century Novella church in the centre of Florence, the protesters were in good voice with many flags and banners, one reading “Denied a vote – Denied a voice”. The usual media circus was in town, and Gareth was delighted to be able to talk to many journalists to throughout the day.

Gareth Horsfall is a member of ‘British in Italy‘ which has been set up to protect and fight for the rights of Italian citizens living in the UK and UK citizens living in the EU.

The message is simple:
We should be granted all the rights that we have acquired and/or are entitled to before the UK chose to leave the EU.

The objectives are listed below:

British in Italy is a group of UK citizens resident in Italy concerned about the effect of Brexit on the many thousands of UK citizens in Italy and the half million or so Italians in the UK
Our aim is to ensure that Brexit does not penalise these individuals, all of whom made the decision to move across the Channel in bona fide and relying on their EU right of freedom of movement
UK citizens already in Italy and Italians already in the UK should therefore continue to have all the rights they had acquired or were in the process of acquiring while the UK was in the EU
We have already lobbied the UK government hard not to take these rights away from EU citizens in the UK

If you have not yet made your presence known, and/or you know someone who hasn’t then feel free to get in touch with the British in Italy group at britsinitaly@gmail.com Your name and contact information will be registered and you will be added to a newsletter mailing list. (Your information will not be shared or used for corporate purposes). Or follow them on Facebook HERE

Horsfall finishes by saying “The UK Government is failing to give an outright guarantee to EU citizens living in the UK and reacting to this the EU is threatening to restrict our own rights. We are all in this together and should fight to stop it. Its not about stopping BREXIT but just about treating people fairly and not ruining peoples lives and potentially pulling families apart.

Gareth was also part of the Exiting the EU Select committee, which met at the House of Commons back in January this year. Gareth was one of four UK citizens living in the EU who represented other UK citizens living in the EU, in Westminster.

Brexit: the effect on your money

By John Hayward
This article is published on: 2nd September 2017

What’s going to happen when the UK leaves the EU on 29th March 2019?

This is a question which is as easy to answer as predicting what the weather will be like on that day. The one thing which is certain is that the next day will be 30th March and it will be a Saturday.

How do we cope with the stream of commentary telling us pretty much nothing other than the EU’s frustration at the UK’s “cake and eat it” stance as well as its “magical thinking”? This rhetoric has made me think more of Alice in Wonderland. It is clear that people are getting a little tired of the lack of information that is being supplied. We know that there are serious financial considerations to be addressed. The problem is that we don’t know what they are right now.

What we can do is try, as best as possible, to cover whatever position we are placed in post-Brexit. For those of us living in Spain, positioning our money in a tax compliant and favourable way was imperative even before Brexit came along. Now it is even more important. There are certain investments such as ISAs, National Savings, and Premium Bonds, which are taxed favourably in the UK, for UK residents. They are treated differently for Spanish residents and it is likely that many holding these investments are not declaring these investments correctly. This may not be a huge problem right now as the UK is part of the EU and accountants and gestors are possibly treating non-compliant investments as if they are compliant. Things may be very different after Brexit and so it is vital to review what investments are held and where they are based.

What rate of tax is paid on savings in Spain?
There are currently three rates. 19% (First 6,000 euros), 21% (6,000 to 50,000 Euros), and 23% (Over 50,000 Euros). These rates apply not only to savings but also to gains on other assets such as investments, dividends, and property. For residents, these assets do not need to be in Spain to be subject to this tax. There are no capital gains allowances for the majority of people and so great care is required when selling assets and a review of assets and ownership is of major importance before the possibility that Brexit will also mean the loss of all EU tax breaks.

Fun financial fact
Consumer prices in the United Kingdom rose by 2.6 percent in the year to July 2017. In Spain it was 1.55%. We have to be aware that investments must perform at least at the rate of inflation to retain the same real spending power. In November 2008, Zimbabwe had an inflation rate of an estimated 6.5 sextillion%* (That’s 6,500 followed by 18 zeros). You would have needed one mean investment to match this rate.

*Source: Forbes

Now is the time to review your finances

By Sue Regan
This article is published on: 18th August 2017

18.08.17

At this time of year not many of us can really be bothered with thinking about pensions, investments and inheritance planning – there’s far more exciting things going on, like holidays, friends and family visits (as long as they don’t stay too long!) and the summer fêtes and festivals in just about every village and town in the region.

This is usually a quiet time for us financial advisers, but this year – not so much – perhaps it’s the “Brexit effect” that is causing more ex-pats to think about their financial future now rather than put it off until after the end of the silly season. Of course, there are still no clear facts as to how Brexit will impact on UK citizens living in France, so planning for it is not easy, but reviewing your situation now will give you a clearer idea of your financial future, whether your plan is to stay in France or return to the UK.

Of course, there is never a wrong time to review your financial health. Regardless of whether or not Brexit actually happens, or whether it is a soft or hard Brexit, things generally change over time, such as pensions and tax legislation, investment performance, physical well-being, income and capital needs………. the list goes on.

These are some of the things that a good financial adviser will discuss with you at a regular review meeting, to make sure that your finances are on track to meet your current needs and longer term goals. It is vital that your pensions and investments are structured in the best possible way to produce a suitable level of return and, at the same time, mitigate taxes as much as possible.

Also, as a French resident, your adopted or default marriage regime can make a huge difference to how your assets are treated for inheritance tax purposes and, by simply changing your regime with the help of a Notaire, the survivor of a couple can be much better protected from the French laws of forced inheritance, as well as other important benefits. Your financial adviser should be able to discuss these matters with you.

As I mentioned in my previous article, the very popular Tour de Finance is once again coming to the stunning Domaine Gayda in Brugairolles 11300, So, if you are concerned about your investments and pensions in a post-Brexit world why not join us at this very popular event where you can meet the team in person and listen to a number of industry experts in the world of financial advice. This year’s event will take place on Friday 6th October 2017. Places are by reservation only and it is always well attended so book your place early by giving me a call or dropping me an email. Our speakers will be presenting updates and outlooks on a broad range of subjects, including:

Brexit
Financial Markets
Assurance Vie
Pensions/QROPS
French Tax Issues
Currency Exchange

Financial advice is needed more than ever in uncertain times and doing nothing can often be an expensive mistake. Hence, if you would like to attend the event or would like to have a confidential discussion about your financial situation, you can contact me by e-mail at sue.regan@spectrum-ifa.com or by telephone on 04 67 24 90 95.

The Spectrum IFA Group advisers do not charge any fees directly to clients for their time or for advice given, as can be seen from our Client Charter

Ignorance is not always bliss…………..

By Sue Regan
This article is published on: 17th July 2017

………..and, in the context of not structuring your investments to the tax regime of the country in which you reside, it can prove to be very costly.

Let’s take the scenario of the savings conscious UK investor who, over the years, has used some of their available cash to build up a nice portfolio of tax-free investments in ISA wrappers, but then decides to take up residency in France. From the date of moving to France the tax-free status of UK ISA is not recognised in France and any income or capital gains arising from the ISA portfolio become liable to French tax.

Not everyone is aware of the tax efficient structures available in France for longer term savings, the most popular of which is far and away the Assurance Vie, and, as a consequence, suffers the pain of incurring tax liabilities where there were none previously, not to mention the extra administrative burden (and accountancy costs) associated with completing the end of year tax return. In addition, they are missing out on the compounding effect that any unnecessary taxes would have on the growth of the portfolio, which, in itself, is a crucial factor which should not be underestimated.

It’s not only the tax-efficiency of ISAs that is affected but, if you have a UK financial adviser advising you on the management of your investments, then it is unlikely that they will be able to continue to give you appropriate advice due to your change in residency and tax regime. You probably wouldn’t have sought the advice of a French regulated IFA to manage your UK investments when you lived in the UK so it doesn’t make sense to expect a UK regulated IFA to advise you when living in a different tax jurisdiction to the one in which they are qualified and regulated.

Of course, making the switch from UK tax efficient savings to French tax efficient savings may not be without some cost at the beginning – but the longer term benefits are highly likely to far outweigh any initial cost. If you have not yet become French resident, by taking the initiative and disposing of your ISA portfolio beforehand, there would be no tax implications whatsoever.

An added attraction to the Assurance Vie is that there is no limit to how much can be invested and the longer you hold them the more tax-efficient they become. In addition, this type of investment is highly efficient for mitigating the potential French inheritance taxes so that your heirs can receive more of your wealth, instead of the French State.

The very popular Tour de Finance is once again coming to the stunning Domaine Gayda in Brugairolles 11300, So, if you are concerned about your investments and pensions in a post-Brexit world why not join us at this very popular event where you can meet the team in person and listen to a number of industry experts in the world of financial advice. This year’s event will take place on Friday 6^th October 2017. Places are by reservation only and it is always well attended so book your place early by giving me a call or dropping me an email. Our speakers will be presenting updates and outlooks on a broad range of subjects, including:

Brexit
Financial Markets
Assurance Vie
Pensions/QROPS
French Tax Issues
Currency Exchange

With a newly elected French government now in office and the forthcoming publication of the French Projet de Loi in the Autumn, the seminar will be an ideal opportunity to find out how any potential French tax changes may affect you, particularly as President Macron has promised changes to the wealth tax regime.

A look at tax rates across Europe

By Chris Burke
This article is published on: 31st May 2017

In a recent article in the Guardian newspaper, Patrick Collinson examines how the average burden on British people earning £25,000, £40,000 and £100,000 compares with taxes paid by similar earners in Europe, Australia and the US.

Chris Burke from The SpectrumIFA Group in Barcelona calculated the figures for Spain and explains “homeowners also pay an annual tax on the value of their property, currently around €900 on a home valued at €300,000, so slightly less than typical council tax rates in the UK. However, he says that inheritance tax has shifted enormously in recent years, having been raised to 19% during the financial crisis but now starting at just 1%”.

Labour’s plan to tax incomes over £80,000 more heavily is a “massive tax hike for the middle classes” that will “take Britain back to the misery of the 1970s”, according to rightwing newspapers. But are British households that heavily taxed?

A comparison of personal tax rates across Europe, Australia and the US by Guardian Money reveals how average earners in Britain on salaries of £25,000, or “middle-class” individuals on £40,000, enjoy among the lowest personal tax rates of the advanced countries, while high earners on £100,000 see less of their income taken in tax than almost anywhere else in Europe.

The survey found that someone earning £100,000 in the UK in effect loses about 34.3% of their pay to HM Revenue & Customs once personal allowances, income tax and national insurance are taken into account. The one-third reduction is roughly the same as the US, Australia and Spain, but a long way behind the 38% in Germany, 41% in Ireland, 45% in Sweden and up to 59% in France (though the French figures include very large pension contributions).
The stories you need to read, in one handy email
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Note that these figures are a rough guide only. International tax comparisons are bedevilled by large numbers of factors. We compared rates for a single person with no children and with no special allowances. Most countries tax individuals rather than households, but France taxes couples, which has the impact of reducing the burden on a high earner with an at-home partner. Autonomous regions within countries impose their own varying taxes. We converted euros, dollars and krona into sterling at a time when the pound had fallen rapidly; some earnings might have translated into higher tax bands abroad before sterling plunged.

Some countries, such as the US, raise relatively large revenues from property taxes. Others squeeze revenue from sales taxes – 25% in Sweden, 19% in Germany. While there is some harmonisation of income tax rates, social security varies dramatically. Australia imposes a small medical levy of 2%. France’s charges can be as high as 30%.

One of the most striking facts to emerge is church taxes. In Germany, individuals are expected to give 8% of their income to the church.

EU officials may look forward to the day when the single currency is teamed up with a single tax policy. But what emerges from our survey is how elaborate each country’s tax and social security systems are. Britain’s actually looks relatively simple compared with France’s. The Brexit negotiations will be a walk in the park compared with any attempt to harmonise the EU’s 27 national tax and social security systems.

France

Gross salary £25,000
After tax £17,050
Tax rate 31.8%

Gross salary £40,000
After tax £23,520
Tax rate 41.2%

Gross salary £100,000
After tax £40,600
Tax rate 59.4%

Spain (Catalonia)

Gross salary £25,000
After tax £20,812
Tax rate 16.7%

Gross salary £40,000
After tax £31,000
Tax rate 22.1%

Gross salary £100,000
After tax £65,700
Tax rate 34.3%

Germany

Gross salary £25,000
After tax £18,923
Tax rate 24.3%

Gross salary £40,000
After tax £27,256
Tax rate 31.8%

Gross salary £100,000
After tax £61,740
Tax rate 38.3%

Sweden

Gross salary £25,000
After tax £19,500
Tax rate 22%

Gross salary £40,000
After tax £30,000
Tax rate 25%

Gross salary £100,000
After tax £55,000
Tax rate 45%

Ireland

Gross salary £25,000
After tax £21,183
Tax rate 15.3%

Gross salary £40,000
After tax £29,624
Tax rate 26%

Gross salary £100,000
After tax £59,000
Tax rate 41%

United Kingdom

Gross salary £25,000
After tax £20,279
Tax rate 18.9%

Gross salary £40,000
After tax £30,480
Tax rate 24.8%

Gross salary £100,000
After tax £65,780
Tax rate 34.3%

To read the full article please click here
First published Saturday 27 May 2017, author Patrick Collinson

What can I do to minimise any potential impacts of a tough Brexit process?

By Amanda Johnson
This article is published on: 11th May 2017

11.05.17

This is a question many expatriates are mulling over, now positioning for the upcoming negotiations has started. First and foremost, I remind my customers that the process to leave the EU is widely anticipated to take the full two years set out in article 50, so the only immediate areas people should focus on are changes in the U.K. and French budgets.

As the negotiations progress however, there are steps you can take which will ensure that any effects to you are minimised:

Does your adviser work for a French registered company, regulated in France?

Working with adviser who operates and is regulated already under French finance laws means that any change in the UK’s ability for financial passporting will not affect you.

Is your Assurance Vie held in an EU country, not part of the U.K.?

Again, any issues the U.K. may have to solve regarding passporting are negated by ensuring your Assurance Vie is already domiciled in another EU country.

Have you reviewed any U.K. Company pension schemes you hold, which are due to mature in the future?

The recent U.K. Budget saw the government levy a new tax on people moving their pensions to countries outside the EU. There is no certainly that this tax will not be extended to EU countries once the U.K. has left the union.

The process of leaving the EU is very much unchartered waters and whilst I certainly do not recommend anyone acts hastily, a review of your financial position in the next few months may avoid future headaches.

Whether you want to register for our newsletter, attend one of our road shows or speak to me directly, please call or email me on the contacts below & I will be glad to help you. We do not charge for reviews, reports or recommendations we provide.

“How dare they move abroad and take their wealth with them!”

By David Hattersley
This article is published on: 19th April 2017

19.04.17

Taken from a (fictional) script of a new episode of “Yes Minister”, re-introducing the following cast.

Chancellor of The Exchequer: The Right Honourable Jim Hacker
Permanent Secretary to the Treasury: Sir Humphrey Appleby
Principal Private Secretary to Jim Hacker: Bernard Woolley

Sir Humphrey, bursts into the office of the Chancellor, unannounced, hot, bothered, angry and ranting.

Sir Humphrey: The PM has just announced another election, What is that woman playing at !!. Heavens above it was only weeks ago that we spent ages working on the Budget, which may never come into effect, or at least until it becomes law, by which time we may, heavens forbid, have had a change of government, and have to start all over again. Teaching newcomers about the real facts !!!!!……. How can I run the nations Treasury on that basis????. It reminds of the last time a lady PM was in charge, daring to throw her hand bag around dictating what we could and couldn’t do. It created chaos. We have only just managed to get back to a kind of orderly sensible running of this department and the Civil Service. What is the point of having a Cabinet if you don’t share the information first.!!!!

Bernard: Sir Humphrey, please calm down a little. To be fair, it’s only a few months since the Minister was appointed. It’s not as if he fully knows the ropes yet. Besides, we tried to contact you this morning at your office, immediately after the Cabinet meeting, but were told that you were at your club having breakfast with old friends from Oxford and were not to be disturbed as you were talking about important issues in relation to the Budget.

Sir Humphrey: Minister you should have let me know earlier. Surely the PM must have known that she was going to make this U – turn, despite saying only a few months ago she wasn’t going to have a General Election until 2020. That’s the trouble with politicians, changing their minds, to the whim of the public at a moment’s notice. We seem to be moving to the policies of our neighbours in the EU, in particular Greece, France and Italy along with the US where a populist trend or tweet is considered grounds to react without the calm sensible order to the stability that we in the Civil Service desire.

Jim: The Cabinet meeting was held this morning. This U turn was only discussed this morning. It was felt that it was in the best interests to enable the PM to be elected as the leader of the party best in the position to negotiate a favourable exit. We needed to do this as soon as possible, so that stability is returned quickly. You seem to forget the previous lady P.M., whom you deride, and may I remind you, “Was not for turning”, who was then thrown out of power by a small number of people, and the electorate was not given the chance to vote . This is democracy at its finest, I think the PM should be applauded for taking this risk, as we all are.

Sir Humphrey: calming down…..mumble mumble, …… Minister I suggest we look at the best way to ensure that the best bits of the Budget that can be carried forward and that we can get some additional revenue coming into the State coffers without too much difficulty.

Jim: Mmm, I am a little concerned that perhaps some elements are a little too hasty and need further thought and consideration. We need to consider that the UK is still part of the EU, and is still subject to the freedom of movement of goods and services as enshrined by the EU/EEA constitution.

Sir Humphrey: In the mean time Minister, due to the election and additional delays we still need to make things harder to protect against a possible net capital outflow for those that are bringing forward plans to retire overseas. I was talking this morning to the FCA, along with the friends from Oxford who are either CEO’s of product providers concerned about retaining their funds under management, along those who are trustees of UK pension schemes. Maybe in two years time we will be well shot of the EU and bothersome elements of the EEA, and can then treat ex pats and the Europeans that move back to their original country as one. As for the Scots we are bribing them with more money than we can afford to stay within the UK. However they seem intent on holding another referendum to leave the Union and join the EU. In that event we can borrow President Trump’s brilliant idea by rebuilding Hadrian’s Wall to stop those heathen coming in. And that can be paid for by increasing the duty on their Scotch.

Bernard: errmmm can I remind you Sir Humphrey, that if what is left of the Union leaves the EU, and just stays in the EEA , then what is left might not get the benefits of the subsidies of the Common Agricultural Policy. That could mean that things like Scottish Salmon, Lamb, Beef and Irish butter from remaining members will get these subsidies whilst what remains of the UK won’t as we will have lost the benefits of the CAP.

Sir Humphrey: Look , after all it was the English electorate that voted to leave and they will have no sympathy with any of them whatsoever. This is especially after that brilliant campaign by the Daily Blurb to stop winter fuel payments to pensioners living in the sunny Costa’s.

Jim: Didn’t they have snow on the Costa’s recently, that seems pretty wintery to me !

Sir Humphrey: Yes, but Minister , that is once every 30 odd years, a one off .

Jim: About the same number of years since there has been snow in London on Christmas Day then!!!!! Their homes are not built for winter, and those that live 10 kms inland have had to suffer cold winters regularly.

A by now exasperated Sir Humphrey: You haven’t given me the chance to explain the wider picture….. We have to take a long term view. The best bit Minister is when 70% of the ex pats return to be with children & grandchildren, or illness, and they eventually need residential care. They will have to pay for this, but not via HMRC taxation, more a sort of stealth tax. Most won’t realize this as it is not direct taxation, but capital assets have to be liquidated to pay to local Social Services under the Care Act. This leaves a maximum of £23,350 per individual that cannot be used for this purpose. It avoids the pesky IHT rules and allowances, with very little being passed to the next generation. That means that they too will have to work longer and harder, still paying tax of course, without the help of a legacy. That solves the problem of demographics, we have to take the longer view. So we hit them on the way out and on the way back in a triple whammy for daring to retire abroad, and not staying to pay taxes in this glorious country of ours as it moves back to its former glories. After all the opportunities we have given to the great British public over the years, for some of them, how dare they move abroad and take their wealth with them. Ungrateful peasants.!!!

Jim: Doesn’t that discriminate against the very idea of freedom and choice, they took a risk. I remember the 60’s and early 70’s when one was limited to the amount of money one could take out of the UK under exchange controls, for those lucky enough to go on holiday abroad in those dark days. My parent’s passports were stamped accordingly to prevent capital flight and a further fall in Sterling. It is wrong, to return to those dark old days and take that freedom away, that’s not playing cricket.

Sir Humphrey: Yes Minister ,but we will also potentially lose further tax payers when some of the companies in the City relocate part of their operations to Europe, along with research companies that may relocate to Scotland so that they still benefit from EU grants. Someone has to pay for that loss and we have to be realistic and find a way that is politically acceptable to the remaining electorate and protect our interests’ as a result of an additional loss to the countries coffers. I know it may not be cricket, but that is a just a game, to which incidentally I will thoroughly enjoy watching from the members pavilion at Lords , after meeting up with the ex leader of UKIP who has just been nominated as a member. Perhaps you’d like to become a member too Minister, I am sure that could be arranged.

Jim: Sir Humphrey, I am pleased for you as a civil servant that you are to be able to spend 5 days off watching a Test Match live. As a working politician I still have the dispatch boxes to go through, and attend to the needs of my constituents. So I am lucky to watch the one hour highlights on TV, so I will have to decline your offer. And there is a minor chance that unlike you I might be out of work in a few weeks time, can’t afford to be a member of Lords, and revert back to a real job.

Moving away from fiction lets deal with the facts

Factual time line.
UK Statutory Residents Test . Finance Act 2013. Note how helpful it is for those coming in, and how difficult it is for those leaving in relation to tax.

UK sited residential property held by ex pats once tax resident abroad. Finance Act 2014. From April 6th 2015, any gain from that date in the value of the property thereafter, upon sale will be liable to UK Capital Gains tax, and as such the gain will be paid directly to UK HMRC.

Care Act 2014.Statutory testing of benefits for care .Introduced two stages April 2015, & then April 2016. The April 2016 element included a revised increased of the thresholds re residual capital and was deferred in April 2015 until at least April 2010 when it will be reviewed again.

FCA ruling. April 2016. Advice and the report required on the potential transfer to a QROP of a Defined Benefit Pensions can only be carried by a UK regulated IFA who charges fees upfront.

Finance Bill March 8th 2017. A potential tax surcharge of 25% of the pot after transferring a UK pension to a QROP.
( Qualifying Recognized Overseas Pension ) Exemptions apply to this particularly if you reside in EEA/EU for five complete tax years after the transfer is completed. A review of all QROP’s providers to see that they match the new rules, in particular those that are outside the EU/EEA area. The rules are more onerous for non EEA / EU residency of both individual and provider. In addition as a “foreign pension” paid to a returning ex pat a QROP will no longer benefit from 90% of this being liable to UK income tax. It will revert to a 100% with immediate effect.

An unusual element of the bill was the fact that it came into effect on the 9th March, allowing no time for those plans already in progress. It is unusual to take such a draconian step and not allow sufficient time for those cases in the process of being progressed to be halted in such a manner.

March 29th 2017. The date the UK formally triggered Article 50 to leave the EU. This has already negated the EU element of the EU/ EEA referred to above re QROP’s.

April 18th 2017 Announcement of UK General Election for June 8th 2017.

A further note is that UK HMRC will still allow personal allowances on taxation of assets held in the UK for non-resident UK citizens living abroad within the EEA. This was dated the 7th April 2017, direct from UK Gov HMRC website. Whether that will continue in the future, will be dependant on the outcome of Brexit negotiations, and that is the great unknown. If you follow the logic applied to the above and the UK does leave the EEA, you have been given at least advance warning.

Most of us as regulated advisers in the EU have come across some UK providers of all manner of, Unit Trusts, ISA’s and Pensions in particular making life extremely difficult too.

So action is required , one has to say immediately, before it is too late. Finally my thanks to the BBC and Antony Jay/Jonathan Lynne for the original Yes Minister,and in particular that episode where Sir Humphrey extols the virtue of the UK remaining in the EU. Thank you for the inspiration to write an updated version that is current, possible and satirical.

Property Thursday on Riviera Radio

By Lorraine Chekir
This article is published on: 14th April 2017

14.04.17

This week on Riviera Radio’s Property Thursday, Lorraine was delighted to be asked to shine her light on the property market in the South of France. With BREXIT being such a hot topic, what does this mean for British residents or expats wishing to buy a property in France?

Whether people are looking to buy a home or an investment property, there are many aspects of a person’s financial situation that needs to be examined before deciding on the various funding options. Talking to an Independent Financial Adviser that is registered and also resident in France is certainly the best place to start.

You can listen to Lorraine’s interview below: