Top Ten UK Tax Tips for Expats 16th September 2009 Debbie Annells Managing Director AzureTax Ltd Chartered Tax Advisor The British Chamber of Commerce

Top Ten UK Tax Tips Filing UK Tax Returns Non UK domicile status Inheritance tax planning Nominate life insurance / pension policies Cheapest investment vehicles Location of assets Owning UK property UK National Insurance Pensions – QROPS Schemes Correctly drafted Wills

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”

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

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

Nominate life insurance / pension policies Check nominations Works for non doms / UK doms UK policies or non UK policies

Cheapest investment vehicles Insurance wrapper most expensive custody arrangements? typically costs 7%! Company / custody accounts usually cheaper Trusts can usually open custody accounts easily.

Location of assets Check location. Is it a high tax location? Can asset location be moved?

Owning UK property Joint ownership (“joint tenancy”) Personal ownership (“tenants in common”) When to own through vehicles? offshore company Trust arrangement

UK National Insurance Class 2 or 3. Doesn’t usually affect non dom status

Pensions – QROPS Schemes QROPS transfers no longer possible to HK or Singapore (since Dec08)

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

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

Any Questions?