Thread: Tax questions, (UK)

Ok, lets take the tax questions here instead. And maybe not just for the UKs!

Quote:
Originally Posted by Adster
Even offshore accounts SHOULD be declared to the IRS but you are taxed on the interest earned in your account and not the total amount of your account. But yes, once you bring it into the UK, you would be charged at 40% if you told them/they found out.

But if you bought a property abroad and kept all monies outside of the UK you wouldn't be charged the full 40%.

No doubt we'll have to pay some tax, but minimising it is sensible and won't leave you feeling 'raped' by good old Gordy Brown.

Reckon half anf half is the way to go, cash in a little at a time, get good advice from an accountant/tax expert, pay enough taxes legally and sleep well at night. The famous folk like Sean Connery and George Michael have the right idea by only staying in the UK no more than 83 days a year and avoid paying huge taxes.

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From Melg:

My husband is a UK chartered accountant and he knows a bit about this - Adster, in the main , is right - the 40% tax is not necessarily the case though - it very much depends on just how much you bring back to the UK (the rate of tax would be dependent on your total income for the year with 40% tax being the highest rate of tax). You can use up the allowances of yourself and also your spouse too (depending on your personal income levels), you can also gift money to friends and family up to about 3,000 GBP which doesn't attract tax (but is a PET, potentially exempt transfer under inheritance tax).

Adster is correct, you are taxed on the monies you send back to the UK - you SHOULD declare your offshore accounts to the Revenue but you only need to declare the INTEREST in those accounts (and even then you don't pay tax on it unless it is REMITTED, or sent, to the UK).

Trusts are another way in which you can protect assets and at the same time gain an income (of sorts) and also minimising your tax liability.

Pensions are another way of minimising your tax liability.

The 83 days a year outside the UK suggestion Adster is slightly incorrect. It is actually 183 days per year or an average of 91 days per year in any 4 year period. If you are in the UK for 183 days or more you will always be resident and subject to taxes. What the "stars" do is they ensure they aren't in the UK for 183 days in any year and that they, on a 4 year average aren't in the UK for more than 91 days in any given year (so your numbers work Adster but aren't quite right).

We no longer live in the UK so he told me to add this caveat as he hasn't practiced or followed the tax legislation for quite some time.

Hope this helps at least a little to some of you.

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Another thing you COULD do is have the money offshore, incorporate a property investment company, wire funds to the company in the UK (this could be your personal purchase of share capital which I don't think is taxable) and buy property (you can get loans to do so and the loan interest is set against the income) - you have the benefit of capital appreciation of the properties and the offset of interest against the income.

It is more complicated than that but I believe it also works - AND you have your money working for you.

You could also take a trip offshore, take a load of money out, bring it back to the UK, exchange it and the IR will be none the wiser (this isn't legal but chances of being caught would be minimal) - don't tell hubby I said this though

Re paying the 40%..... why do you think we LEFT the UK ?

Raditz, what do you say about the tax in Sweden? Should be capital gains, 30%, right?
K

Anybody in UK know any good tax advisors, I'm going to need help before i make any expensive mistakes.