Expats Get Better Thresholds For The New Tax Year

Finally the new tax year has arrived and it has a few changes to certain thresholds, if you are a expats I will be showing you the key points that will help you in the tax year 2014-2015.

Never mind what happened in the previous tax year because by proving residence you will be able to save on your taxes this year.

To take advantage of these savings you will have to prove your residency by sitting a residence test (SRT). This test will prove that you have a UK tax status. Many people that leave the UK do not realise that they qualify for this status. So take the test and see if you can benefit.

Benefits & Draw Backs

The draw back is that they still have to contribute to taxes in the UK, but the benefits are that still get allowances on “Pension Contribution Relief). Everybody that is a expat should always take the residence test to determine what they can save on the taxes they pay.

The major difference this tax year is that non residents who have a house in the UK. They are aiming to tax “Chargeable Gains” on any homes you own. At this moment the exact details are still to be released but take it from me they will happen.

Changes To Pensions

One other change for expats is getting hold of your pension cash. These rules are already in place for the contribution scheme. People in the public sector are set to be banned from transfers for final salary schemes.

QROPS

When the ban is imposed it will stop expats who have defined benefit schemes from swapping onto the off shore option (QROPS)

QROPS offer a better deal with its flexibility for investments & tax options. If I was you I would carefully think this over before you decide which road to go down to go down.