3 Top Ten UK Tax Tips Filing UK Tax Returns Non UK domicile status Inheritance tax planningNominate life insurance / pension policiesCheapest investment vehiclesLocation of assetsOwning UK propertyUK National InsurancePensions – QROPS SchemesCorrectly drafted Wills
4 Filing UK Tax Returns On-line filing – residents – non residents UK Government GatewayNon residence forms as part of UK ITR– tick correct boxes!New HMRC6 Booklet replaces IR20 on “Residence and Domicile”
5 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 ITRTick correct boxesState year you become non UK dom
6 Inheritance Tax Planning IHT Nil rate band, each person.£285,000£300,000£312,000£325,000£350,000Transferable nil rate bands for spousesUK pension funds balances over limitscome within IHTRemember FOTRA securities
7 Nominate life insurance / pension policies Check nominationsWorks for non doms / UK domsUK policies or non UK policies
8 Cheapest investment vehicles Insurance wrappermost expensive custody arrangements?typically costs 7%!Company / custody accounts usually cheaperTrusts can usually open custody accounts easily.
9 Location of assets Check location. Is it a high tax location? Can asset location be moved?
10 Owning UK property Joint ownership (“joint tenancy”) Personal ownership (“tenants in common”)When to own through vehicles?offshore companyTrust arrangement
11 UK National Insurance Class 2 or 3. Doesn’t usually affect non dom status
12 Pensions – QROPS Schemes QROPS transfers no longer possible to HK or Singapore(since Dec08)
13 Lifetime trustsStill possible despite 2006 Finance Act impact on trustsNon dom spouse?Nominate life insurances?To use up IHT nil rate band every 7years
14 Correctly drafted Wills Both spouses should have Wills!If non UK domicile claimed – state in preambleOld Wills may affect transferable nil rate IHT band usageMost Wills need be redone often in Asia