Tax implications

[IreneP]

Hi all, I am a UK national and looking at retiring in approx 4 years, selling up all assets in the UK and buying a motor boat (twin deck approx 60-70 ft) and spending my entire retirment in the Med/Black sea. I have two UK pensions and would love to know if I am better being domiciled in another European country for tax purposes...I know it's a long shot but surely even taxmen retire to the med and offer free advise Also where is the best place to lay up in the winter and the best place to avoid the crowds in the summer??

[mcarling]

The lowest income tax rates in the EU are in Bulgaria. EU law doesn't have the British concept of domicile, only residence. As a UK national, you have the right to establish residence there. If you don't open a bank account there and don't have any Bulgaria source income .....

[boatman61]

Cartagena, Spain for the winter
In the summer S Sicily.. through the Corinth then run up the channel between the Greek mainland and Evoa... then carry on N up the E coast and around to Turkey...
As to your money... ya don't need my advice... I only managed a 21ftr....

[boatman61]

Damn... totally forgot..

Welcome to CF...

[Geoff54]

Originally Posted by IreneP

Hi all, I am a UK national and looking at retiring in approx 4 years, selling up all assets in the UK and buying a motor boat (twin deck approx 60-70 ft) and spending my entire retirment in the Med/Black sea. I have two UK pensions and would love to know if I am better being domiciled in another European country for tax purposes...I know it's a long shot but surely even taxmen retire to the med and offer free advise Also where is the best place to lay up in the winter and the best place to avoid the crowds in the summer??

As British citizen but not a British resident for many years, I have had a long interest in the tax rules - these changed significantly starting in 2011.

Domicile is only relevant if you have non U.K. income - Tax is determined by residence and the the new rules are:

Anyone who is present in the UK 183 days or more is resident.
Anyone who is present in the UK for less than 10 days is non-resident.
Anyone who fall between these definitions will have residency determines by a series of tests.

The full explanation is here:
http://www.hmrc.gov.uk/cnr/hmrc6.pdf

Google "uk expat tax rules". Fry's and several others provide good ex-pat tax advise. Also take a look at Moving and living abroad | www.expatmoneychannel.com

Have a great retirement.

[rivonia]

Speak to a specialist accountant.

Peter

[David_Old_Jersey]

Before fleeing the UK (and the tax!) might want to also consider how becoming non-resident affects you on the NHS for healthcare. At the moment you might have the cash to go private, but that can change (Getting sick can be expensive, especially if drawn out).

My understanding (check!) is that once you leave the UK that if you return you join the back of the Q, behind those who got off the plane from various corners of the world the day before (and despite what the Daily Heil etc say new immigrants don't get everything on a platter the day they turn up - on somethings you do need several years of boots on the ground). Could be really annoying if in the past you paid enough into the pot to pay for a hospital or 2! and now all you qualify for is a free ride on the Liverpool Pathway (to Jesus) because that is the best available for you........

Anyway, just a thought.