UK Income Tax and Health Insurance Advice

judyr


Joined: 07/07/2009
Posts: 956

Message Posted:
06/04/2010 12:44

I am hoping to move out to TRNC in the summer and need some guidance regarding UK Tax. I will be having my money paid into a UK bank account monthly but tax will be deducted from this. I have looked on the HMRC website and there is an option, if living abroad, to waive the income tax. However I am not sure how this will affect state pensions etc when they become due. I have now paid in for the required 30years so no problem there but still want it to be index linked.

Also health insurance.... normally I am covered with my LLoyds TSB bank account for "travel" but not full time. Do most people take out a private policy?

Thanks

for any help you may be able to give me.

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
06/04/2010 13:12

Judith



There are two tests for UK Income Tax, the first rlates to the source of the income. the second to the residence of the recipient of the income.



With regard to UK pensions therefore they are subject to UK Income Tax as they are Income that arises from the UK. In that case the resisdency of the individual ceases to be relevant.



Harold

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
06/04/2010 13:37

Take a look at the following, this will give you the answers you are looking for.





http://www.direct.gov.uk/en/BritonsLivingAbroad/Moneyabroad/DG_4000013



http://www.hmrc.gov.uk/nonresidents/

judyr


Joined: 07/07/2009
Posts: 956

Message Posted:
06/04/2010 13:37

Thank you Harold. Perhaps you could assist with this scenario ...

Able to draw occupational pension 15 years early but in UK would still be liable for tax. Own a house in TRNC but also retain a property in the UK to rent out just in case things don't work out. Residency or not what would be the best option - Ste pensions not relevant for another 15years yet.

Thanks

kaysera


Joined: 14/07/2009
Posts: 103

Message Posted:
06/04/2010 14:00

judyr, you will also have to pay tax on you rental income from your UK property, I believe.

keithr


Joined: 20/08/2008
Posts: 720

Message Posted:
06/04/2010 14:41

Judyr,you can apply to have rental income paid gross,so if you have expenses incurred in the rental eg:agents fees,repairs,buildings insurance,these can be offset against your potential tax bill for your rental income.



There is a list of acceptable expenses on the HMRC website.



I'd have a good chat with a decent accountant before taking the jump though,as I did.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
06/04/2010 15:57

judyr, why don't you look at the following:-



http://www.hmrc.gov.uk/nonresidents/



This really gives you all the answers you need. You are quite likely to get duff info on here and any other forum

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
06/04/2010 17:36

Judy



The advice in message 6 is the best you will get, see an accountant, unfortunately I no longe practice!



LovingCyprus. the answers you will get from the Revenue whilst accurate will be narrow and very specific, interpretation of the law and experince in how it is applied in practice is what people need and thus the accountant route.



Occasionally you find one or two who post general information on a forum even but best get tailored advce I recommend.





Harold