Reply to: Pension advice

[Diestl]

Thanks for the advice. My plan is thus, get a cam and pay off mortgage, in 6-8 years, do same again while renting first one out, pay off in 5-7 years, do it once more while renting two props out an pay off in 3-4 years. Then ill have no mortgage, and 2 rent incomes....boomed!. Just going to wait for the bottom of the housing market before I execute.

[AlfredJPruffock]

Yes, whay invest in something you might never see, or will probably not see much of!

Exactly BP

Why not consider the Pruffock Retirement Alternative - Wine Women and Song Portfollio which is indexed link to the GSI (Grey Slate Index).

At the end of the day you might end up with nowt - but boy you will have had a good time.

And - ye cannae take it with ye.

[expat]

Some countries are currently changing their tax laws to grab some of this cash so be careful.

Good post from C. Costs me nothing to say so, doesn't happen often.

[expat]

old chestnut alert >>>>>


actually it's a new tax on muff diving


old chestnut alert >>>>>

Oh. They used to say it was the Pope's phone number.

[DimPrawn]

http://www.telegraph.co.uk/global/ma...ons-abroad.xml

Expats who are as fed up with Britain's pension regime as they are with the weather can now take their funds with them and never have to buy an annuity thanks to new rules on overseas pensions.

Many of the estimated 400,000 Britons who move abroad each year can now pack their pensions too and take their funds as cash within five years.

With research from Scottish Widows showing that two-thirds of higher-rate taxpayers plan to head for sunnier climes when they retire this figure is set to grow.

Expats can now say goodbye to compulsory purchase of annuities and high taxes on their pensions by getting on board with what some financial experts are calling the next big thing in retirement savings - offshore pensions.

In April the Isle of Man introduced new rules for its pensions that sound like a wish list for anyone choking on UK restrictions: no obligation to buy an annuity, higher tax-free lump-sums, the freedom to invest in residential property and inheritance tax less than one-tenth of UK levels.

The new Manx pensions are the latest dish on a mouth-watering menu of offshore pensions. Jurisdictions such as Singapore, the Republic of Ireland and Hong Kong are even more liberal in what they will let you do with your pension, allowing you to get your hands on all the cash once you have been out of the UK for five years.

"Anyone planning to retire abroad or move overseas for at least five years should look very closely at offshore pensions as this is a serious opportunity to save a large amount of tax," says Steve Travis, a former member of HM Revenue & Customs' (HMRC) overseas division who now works as a cross-border pension adviser for independent financial adviser (IFA) The Fry Group.

To make the most of the tax advantages you have to move your fund to a Qualifying Registered Overseas Pension Scheme (QROPS), a form of pension introduced two years ago.

Once in a QROPS, your cash is no longer subject to HMRC rules, although the provider must report your dealings with it to HMRC for the next five years.

After that there is no reporting requirement, and if you are still not living in the UK your entire fund can be taken as cash.

Anyone moving abroad needs to make sure it makes sense to switch into a QROPS for the country that is to be their new home.

Professional advice is essential because the evaluation is a triangular process involving tax rules in the UK, the country where the QROPS is based and the country where you plan to live.

While the QROPS will free you from UK tax, you may be taxed in the country in which it is based and in your new country of residency.

"There are many people who have already moved abroad who have left their pensions in the UK who should revisit their arrangements to see if they are paying too much tax," says Mike Lightfoot, former marketing executive of the Isle of Man's pension regulator and now managing director of pension company IOMA Horizons.

The new Isle of Man rules make their QROPS pensions significantly more flexible than their UK counterparts.

Unlike the UK, there is no requirement to buy an annuity at age 75, tax-free cash is set at 30 per cent rather than 25 per cent and funds can invest in residential property, an idea that was floated in the UK two years ago and then dropped.

The IHT position is more attractive on funds held over there too. If you die in income drawdown before 75 in the UK IHT is charged on the fund at 35 per cent; in the Isle of Man it is just 7.5 per cent across the board.

"Many people who are in drawdown at the present are in a position where they simply want to hand their funds over to their family. For them there is no comparison between an IHT rate of 35 and the Isle of Man's 7.5 per cent," says Richard Jacobs, director of Richard Jacobs Pension and Trustee Services, an IFA.

Singapore QROPS pensions can be even more attractive, with no IHT at all, and zero local income tax on drawings, although these plans are more expensive, at up to 6 per cent of fund value in some cases.

Isle of Man pensions charge income tax at 18 per cent, which will be taken account of in your country of residence provided it has a double taxation treaty with the Isle of Man. But you also need to consider the local tax rates in the country to which you are moving.

"For the super-rich or those with several homes it is possible to become a fiscal nomad and not be taxed anywhere," says Mr Travis.

"However, the Revenue is making it harder and harder to manage that. But for those that don't, QROPS transfers can still be very exciting."



Boomed!

[Cyberman]

Actually, if you move abroad, you can transfer the whole pot to a foreign (EU) provider that does not have any restrictions on drawing the money. You can then take 100% tommorrow if you like (tax free). Look it up.

Some countries are currently changing their tax laws to grab some of this cash so be careful.

[EternalOptimist]

I'm just hoping that VAT 69 is not a percentage prediction.

old chestnut alert >>>>>


actually it's a new tax on muff diving


old chestnut alert >>>>>

[expat]

Vodka And Tonic? Damn you can't get away from tax

I'm just hoping that VAT 69 is not a percentage prediction.

[Bagpuss]

DP I may just owe you a drink. A large one.

Vodka And Tonic? Damn you can't get away from tax

[expat]

BTW (just to ask for the icing), list of countries, links???

[DimPrawn]

DP I may just owe you a drink. A large one.

They are looking at this "loophole" at the moment, so if you are going to:

1. Emigrate
2. Retire

I'd get a move on.

[Purple Dalek]

DP I may just owe you a drink. A large one.

Me too, and I thought I was up to speed with the dodges.

But the exchange rate is a killer at the moment, yet likely to get much worse.

[expat]

Actually, if you move abroad, you can transfer the whole pot to a foreign (EU) provider that does not have any restrictions on drawing the money. You can then take 100% tommorrow if you like (tax free). Look it up.

DP I may just owe you a drink. A large one.

[DimPrawn]

Not necessarily with a SIPP. I have a pretty good idea on how I can get most of my pension back out between 55-75 without paying too much tax.

Actually, if you move abroad, you can transfer the whole pot to a foreign (EU) provider that does not have any restrictions on drawing the money. You can then take 100% tommorrow if you like (tax free). Look it up.

[EternalOptimist]

Not necessarily with a SIPP. I have a pretty good idea on how I can get most of my pension back out between 55-75 without paying too much tax.

I used to think like you. Then got the suprise of the pension raid and IR35. It makes life that bit more uncertain