ProACT Sam Orgill looks forward to highs of 2025 for UK Expats Living and Working Abroad
UK TAX FLURRY
In the UK, for the 2023-2024 tax year, the Self Assessment tax return must be filed online by 31 January 2025, and any tax owed must be paid by 31 January 2025. Late filing or payment incurs penalties, starting with a £100 fine and escalating over time.
If you have UK fixed taxes or have been asked for a return you could ask for ProACT Know How to.
NEW YEAR TAX CYPRUS
In Cyprus, tax payment and return deadlines vary depending on the type of tax. For VAT and self employed social insurance , returns are due quarterly, with payments by the end of the following month. Income tax returns for individuals are typically due by 30 June of the following year, while companies have until 31 December. Tax payments are due in two instalments: the first by 31 July and the second by 31 December.
It’s advisable to consult us for ProACT Know How for specific deadlines.
SPRING ROLL OVER
The UK plans to roll over 200 years of tax rules and abolish the ‘non-domiciled’ (non-dom) tax status from April 2025, requiring residents to pay tax on worldwide income and capital gains. This change is expected to increase tax revenues by approximately £2.6 billion annually, but may also lead to the departure of some wealthy individuals seeking more favourable tax regimes like Cyprus.
With pension pots added to investment and property and business assets the liabilities will go up indirectly with higher net value of estates to pay 40% inheritance tax.
Additionally, the government intends to remove inheritance tax exemptions for non-doms, potentially affecting estate planning strategies.
ProACT Know How to protect family and business from capital and inheritance taxes.
TAX AUDITION
In Cyprus, companies and businesses with turnover over Euro 70k must prepare and approve their annual financial statements within 12 months to the end of 2025 from the end of the financial year December 2024. These statements must then be audited to some extend by an independent auditor, with the audit report submitted to the Department of Registrar of Companies and Official Receiver within 28 days of approval. Failure to comply with these deadlines can result in penalties and legal consequences.
ProACT Know How to manage family business and companies in Cyprus.
DEEMED DOMED
As a UK expatriate, your inheritance tax liabilities depend on your domicile status. If deemed domiciled in the UK, you are liable for 40% inheritance tax on worldwide assets; otherwise, only UK-based assets are taxed. Recent UK tax reforms, including the abolition of the non-domiciled status from April 2025, may affect your tax obligations. You could be deemed domicile to the UK for more than 20 years after going Expat and doomed to pay Inheritance Tax at some time. Maybe not this year.
Consult ProACT Know How tax professionals can help you understand how these changes impact your situation.
SHELTERED
In the October 2024 Halloween budget the UK government abolished the non-domiciled (non-dom) tax status, requiring all UK residents to pay tax on worldwide income and capital gains. This reform also removed the ability to shield offshore assets from UK inheritance tax, leading many wealthy individuals to consider relocating to countries with more favourable tax regimes.
ProACT Know How to protect family and business Living and Working Abroad, relocating overseas and investing offshore.
UK government announced plans to abolish the ‘non-domiciled’ (non-dom) tax status from April 2025, ending a 200-year-old exemption that allowed residents to pay tax only on UK-earned income.
This change means that individuals who have been residents for 15 of the last 20 years will be taxed on their worldwide income, including foreign earnings.
UK taxpayers could relocate to Cyprus with ProACT Know How to protect income and capital for a happy lower tax new year.
ProACT Sam Orgill
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