ProACT Sam Orgill describes what you can do as a Cyprus tax resident before the advent of the pre Christmas UK Budget.
The UK Budget to start the advent period could be a hogswash or the herald of a new tax year ahead. This article, written before the dawn, holds out some optimism.
Subject to the consideration that the political landscape in the UK is so bad something has to change.
The Halloween Budget of 2024 introduced massive tax rises and the government spending has increased since then.
Consider a key point the current government is committed to supporting and not increasing income taxes for ‘working people’ , as they define people in the earning income below £45,000
The key point being that means 20% tax payers Living and Working in the UK.
Voters at the next election
Not 40% tax payers.
Not expats.
FIXED
People with bumper public sector pensions have already been dragged into the UK fixed pension income net – these pensions can’t be taxed outside the UK if Living and Working Abroad.
Got a successfully property rental portfolio this income too is fixed into UK income taxes.
All pensions and property are fixed capital gains and inheritance tax liabilities in the UK too. Capital Gains tax went up 80% in the last budget.
EXPATS
For Cyprus based Expats UK pension can be drawn to pay a flat rate 5% income tax and free your pension funds from this UK constraints.
Not to transfer the pension plan , that incurs a flat rate 25% tax.
But to draw income as an expat Living and Working Abroad in a low tax country like Cyprus with 5% flat rate pension tax.
Cyprus also offers 0% tax on interest, dividends and no capital gains on investment.
Finally no inheritance tax.
ACTION PLAN
If you are Cyprus tax resident of a certain age,
You could draw down your whole UK pension fund and only pay a flat rate 5 % income tax in Cyprus.
Whether £100,000, £1 million or £10 million.
Even if you are still working, it is still only a 5% flat rate tax.
You save up to 40% income tax before the Advent Budget
Act now even if you are not ready to retire – tax saving 40%.
You can gift savings cash outside pensions to friends, family or charity saving 40% inheritance tax liabilities. Hold your savings, property and business in family in a Cyprus based tax free fund.
AFTER PARTY
You could be reading this article after the advent of a new set of tax laws that hits UK expats Living and Working Abroad and those who have worked, invested and built wealth in the UK.
As ever the ProACT advice is plan ahead. Contact us for a free review and advice on how we could help you save the most tax.
Sam Orgill
ProACT Partnership
Tax Saving Expat Experts.
Contact Us we offer a Free Review online or face to face for professionals, consultants and the retired Living and Working Abroad. Tax, Wills, Estates, Property, Business.
www.proactpartnership.com/contact-us
ProACT Cyprus Office :+357 26 819424
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