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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4207
Experience:  FCCA FCMA CGMA ACIS
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When I start my pensions in 5 years, I will be propelled into

Customer Question

When I start my pensions in 5 years, I will be propelled into the highest tax bracket and I'm wondering if I bought somewhere overseas and stayed there part of the year, could I position myself as none resident and pay local tax abroad?
Can you advise on this and the best places to live for low tax/great lifestyle or do you know someone who's brilliant at this stuff please?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

It's not quite as easy as that. For starters to establish your self overseas for tax purposes you must spend a complete tax year outside the UK.

If you make occasional visits to the UK they may not aggregate 90 days in each tax year.

Finally living in tax havens, Channel Islands, Isle of Man and the Turks and Cocos Islands for example does not come cheap. It is big business there.

You may have to re-think your proposals and maybe take independent financial advice.
Customer: replied 3 years ago.

Hi Keith,


Thanks for that. I understand your first 2 paras but if Channel Isles and IOM are max 20% income tax, what means please "they don't come cheap" do you mean houses are expensive or indirect taxation is expensive or general cost of living et al?


Regards


Tom

Expert:  bigduckontax replied 3 years ago.

Right, in most of these tax havens, CI and IOM for example, there are two property tiers. One for those with residential qualifications, locals, and a second much higher one for incomers who often have to prove their wealth before they can even enter the market. Furthermore the cost of living tends to be higher merely because of the logistic complications of re-supply. I did a study once of the cost of living viz a viz Scotland and England and Scotland came out 13% more expensive than England. If one took in the Western Isles one could add another 13% on to the Scottish prevailing prices and frequently the choice was somewhat limited. I recall commenting that meat prices reflected the only butcher's monopolistic opportunities!

 

The CI do not levy VAT, the IOM does and at a lower threshold level to boot.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.