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Where Taxpayers and Advisers Meet

EXPAT RETURNING TO UK AFTER 22YRS

hk1999
Posts: 8
Joined: Sat Jul 22, 2017 10:36 am

EXPAT RETURNING TO UK AFTER 22YRS

Postby hk1999 » Thu Mar 14, 2019 5:48 am

Hi All, if you could help on any of below issues i would be most grateful.

1. Can a SIPP be started before moving back to UK or after moving to UK even though I have no salary in UK, would this be tax efficient for the earnings (re-invested) before eventual pay-out or consider alternatives

2. Is dividend tax (franking) paid by Australia companies offset with UK dividend or income tax if remitted to UK

3. Is there any advantage or disadvantage having UK property in my name only (UK income tax / IHT etc.), i am UK domiciled, my wife is not, we will move to UK in 2020

4. Is there any advantage or disadvantage by having HK or China property in my wifes name only (UK income tax / IHT etc.), we are both Hong Kong permanent residents, she is Chinese domiciled, we will move to UK in 2020

5. Do resident non-doms (remittance basis tax) have access to NHS for treatment or once resident would my wife be automaically covered

6. Can marriage allowance tax be claimed if spouse is claiming remittance basis bearing in mind they lose all tax allowances (I assume not)

7. Are overseas dividends (when remitted to UK) taxed in same manner as UK e.g. 7.5%, 32.5% or are they taxed as earning at 20% and 40%?

Thank you all for any advise given :D

darthblingbling
Posts: 145
Joined: Wed Aug 02, 2017 9:09 pm

Re: EXPAT RETURNING TO UK AFTER 22YRS

Postby darthblingbling » Thu Mar 14, 2019 9:33 am

1. If you're claiming UK tax relief on the contributions then you would need a certain amount of UK relevant income. Although you can contribute £3,600 gross regardless of relevent income.

2. No, HMRC specifically disallow this as they deem to it be a corporation tax

3. Potentially, IHT isn't my specialism however. But transfers to a non dom spouse I believe are limited to the nil rate band for IHT purposes. Best you get proper planning to look at your estate as a whole

4. If your wife is non dom and the property is solely hers then she may benefit from the remittance basis on income that arises from such properties, assuming that income is not then remitted to the UK. For IHT purposes, they do not form part of her estate, but be aware of the deemed domiciled rules.

5. This isn't a tax question

6. No

7. If claiming the remittance basis, remittances to the UK are taxed as non savings income, so yes 20%, 40% and 45%

8. Don't rely on tax advice from someone called DarthBlingBling

AGoodman
Posts: 711
Joined: Fri May 16, 2014 3:47 pm

Re: EXPAT RETURNING TO UK AFTER 22YRS

Postby AGoodman » Thu Mar 14, 2019 1:31 pm

3. Probably a disadvantage. If you died, your wife would have to elect to be UK domiciled for IHT (for at least 4 years) in order to receive the properties exempt from tax. If she held them, then on her death they could pass to you with an automatic exemption. If they are in your name now, a gift to her would be a PET but could be treated as exempt retrospectively if you were to die within 7 years (by her making the election).

5. NHS rights entirely separate to domicile/election for the remittance basis

Bear in mind that the remittance basis comes with a charge after 7 years.

hk1999
Posts: 8
Joined: Sat Jul 22, 2017 10:36 am

Re: EXPAT RETURNING TO UK AFTER 22YRS

Postby hk1999 » Sat Mar 16, 2019 4:52 am

Hi Darthblingbling & AGoodman, thank you both for the quick and helpful responses :D

We will be taking further advise from tax and investment planners.

Cheers


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