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I'm planning to go traveling few years and then retire in a different coun

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Hi,
I'm planning to go traveling for a few years and then retire in a different country.
I have a limited company with some cash and share investments. I also have shares in my personal name i.e. outside of the ltd as well as a few rental properties. I plan to finance my travel mainly from the rent but also by drawing some cash/ selling some investments both ltd and personal during the years. I am trying to decide on the optimal tax arrangements e.g. do i become non-resident, do i take money out of the ltd as salary or dividends, do i make my partner employee of the company ... My partner also had a property and we have one together... is it worth considering one of us remaining a resident and the other becoming non-resident? Should we/ can we continue paying our NI. Are there other aspects we need to consider?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.
If you are non-UK resident, your UK rental income will still be taxable in the UK but you will be entitled to a personal allowance so long as you meet one of the conditions here:
http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10340.htm
You will need to register with HMRC under the non-resident landlord scheme which you can read about here:
https://www.gov.uk/tax-uk-income-live-abroad/rent
No matter how much your dividends are, as a non-UK resident you will currently have no tax liability beyond the notional 10% tax credit which is attached to a dividend payment. From 6 April 2016, however, the taxing of dividends will change such that a basic rate taxpayer will have a 7.5% tax liability on dividends in excess of £5,000 and any unused personal allowance. There will no longer be a 10% tax credit.
Until the Autumn Statement is made by the Chancellor on 25 November, its not clear how non-UK residents will be affected by the new dividend tax regime from 6 April 2016.
Unless you have UK earnings, you cannot pay regular employee NI contributions. You could pay voluntary contributions which you can read about here:
https://www.gov.uk/national-insurance-if-you-go-abroad
As a non-UK resident, you can sell shares, non-UK residential property and other assets and pay no UK CGT. However, gains made on the disposal of a UK residential property by a non-UK resident may be liable to UK CGT depending on whether it was the main home of the owner or not. Read about the new rules here:
https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property
I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thanks Tony.
With regards ***** ***** NI - if I pay myself a salary from my Ltd can I also pay NI? Are there any advantage in doing this compared to voluntary NI contributions?
Customer: replied 1 year ago.
Sorry .. Also - will I have to pay CGT on the shares that my company owns?
Expert:  TonyTax replied 1 year ago.
Most people won't pay NI if they don't need to. If your salary is above a certain level, then you will pay NI and so will the company so it can be expensive compared to a voluntary NI contribution. You get NI credits even if your salary is below the level at which you start paying it (£155 per week) but more than £112 per week.
If your company is a UK company, then it will pay corporation tax on its capital gains.
Customer: replied 1 year ago.
Thanks Tony.
Going back to the non-resident landlord - HHMRC say that you are classed as one if you live in UK for less than 6 months a year. Yet at another place it says that you don't need to tell HMRC when going on holiday. We are planning to do travelling (sailing) so will be non-resident landlord or not?
Expert:  TonyTax replied 1 year ago.
It doesn't matter what you are doing. I had a client who spent more time abroad than working in the UK and she retained her UK tax residence status but she was classed as a non-resident landlord. See paragraph 2.3 here:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/420961/notes-letting-agents-tenants.pdf
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15840
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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