Expat tax break threatened…………
The UK government’s assault on the finances of British expats continues as it threatens to abolish their right to personal tax allowances.
Every UK taxpayer has a personal allowance, which is the amount of income that can be earned before tax needs to be paid, currently non-residents are eligible for this allowance. However, in
the recent Budget the Chancellor announced that he is considering abolishing the UK Personal Tax Allowance for non-residents.
The implications of a loss of personal tax allowance for any expat who derives an income from UK property or pension will be far reaching. Tax experts believe that the personal allowance will still be made available to Britons living in the EU, but other countries could face changes. These include destinations such as the US. Australia and Thailand which are all extremely popular with British expats.
This assault follows on from the Autumn Budget with the announcement of the introduction of capital gains tax when a non-resident sells property in the UK. To be introduced in April 2015 this will see many expats selling their UK residential properties before the tax comes into force.
Many see expats as a soft target for the UK Government, without the power to vote they have no real influence and certainly the proposed tax changes will detrimentally affect retirees living abroad.
Video of Asia Pacific Pensions
To get free, independent advice on how these changes could affect you contact: [email protected]