Go Back  British Expats > Living & Moving Abroad > Far East and Asia > Malaysia
Reload this Page >

Retirement in Malaysia and MM2H Scheme

Retirement in Malaysia and MM2H Scheme

Old Sep 25th 2008, 8:57 am
  #31  
Banned
 
Joined: May 2008
Location: Lagrange 2
Posts: 1,507
Bijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond repute
Default Re: Retirement in Malaysia and MM2H Scheme

The advice given by Djoerk is unsound in parts and I wold like to clarify some of the vital few issues.

As said domicile and residency are unrelated. You can only have one domicle but you can have many residencies. It is British residency that triggers a British tax liability. This is covered in the HMRC booklet IR20. It is almost impossible to give up UK domicile and there are reasons for this and it should not be attempted because it can enhance any weak features of residency which may give rise to tax liability and which would have been ignored otherwise.

You do not have to aply to be non-resident. You should however submit a form P85 in support of your non-resident status when the isue of tax arises. You can also submit R105 to get savings interest paid untaxed (although you may have a tax liability on it). If a landlord then become a registered Non-Resident landlord - because that helps a lot. There is no compulsion to do these things.

British and Comonwealth Citizens have the right to the basic tax free allowance on income irrespective of where they live.

All Britons have a tax liability to all worldwide earnings - that is a fact. This liability can be offset by paying tax overseas. In addition there are residency rules which, under fairly clear circumstances allow an exemption of income tax liability. This is the so called 90 day rule. If you come to Britain and do work for a UK or foreign employer then you lose any dispensation - this is a new 'rule' brought in May 2008. Generally any money sent to the UK from abroad is taxable and is always at risk of being taxed.

Thre is no six month period when Newcastle wants information - you do not need to apply to be non-resident. The British Government does not care what other Government's Taxation Authorities do - it does not affect your tax liability - it only offsets it in double tax agreement zones!!! I don't know why this statement was made but it is misleading.

Saying that, thre are no rules. HMRC is notorious at hounding people for tax and merciless in getting paid through the courts. They have access to Currency Transaction databases for both money laundering and fraud (tax fraud) reviews.

HMRC always look at intentions and not rules!! Look at the case of HMRC vs Gaines-Cooper to see how someone who kept within the non-resident status 'rules' and was taxed.

Non-residents just don't qualify for free medical treatment. Class 2 contributions from abroad do not affect this!! Think about it. You may get away with turning up at a doctor and getting treatment as normal - but as a non- resident you are not entitled to it. If you are charged then the costs of British Private treatment are higher than in America as a comparison.

Be careful what advice you take - you can see two similar but essentially differing views on this page - both can't be right. Take your choice and your risk - not everyone gets caught avoiding tax but whe it happens then it gets bloody.

Good luck.
Bijilo123 is offline  
Old Sep 25th 2008, 9:24 am
  #32  
Forum Regular
 
djoerk's Avatar
 
Joined: May 2008
Location: Currently Edinburgh, Scotland
Posts: 68
djoerk is a jewel in the roughdjoerk is a jewel in the roughdjoerk is a jewel in the roughdjoerk is a jewel in the rough
Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by Bijilo123 View Post
The advice given by Djoerk is unsound in parts and I wold like to clarify some of the vital few issues.
This thread is about Malaysia and the Second Home Programme - which is ONLY FOR RETIREES. If interested - I suggest you read the link\forum\site I posted - where MM2H Visa Holders have been through the mill on this subject- and are happily residing in MY - UK TAX FREE and Malaysian Tax Free. (However, they MAY be got eventually on Inheritance tax).

I have found UK and International Tax Advisers and Accountants - relatively unaware of MM2H. With HMRC it is better to try to deal with them when in the UK - and fill in every form going. They can be a quite helpful if you handle them with urbane humour.
djoerk is offline  
Old Sep 25th 2008, 10:25 am
  #33  
Forum Regular
 
djoerk's Avatar
 
Joined: May 2008
Location: Currently Edinburgh, Scotland
Posts: 68
djoerk is a jewel in the roughdjoerk is a jewel in the roughdjoerk is a jewel in the roughdjoerk is a jewel in the rough
Default Re: Retirement in Malaysia and MM2H Scheme

Bijilo:

Bijilo:

"There is no six month period when Newcastle wants information" ..... this remark is allied to MM2H Timescale.

"HMRC always look at intentions and not rules" .....MM2H Visa gives you the right of residency in MY for 10 years (renewable ad infinitum) and long term rentals or purchase of property – seems to pass muster.

"Non-residents just don't qualify for free medical treatment." Dependent on "friendly family Doctor" IF you HAVE to when visiting UK (most MM2Hrs avoid it like the plague!). You do qualify once you decide to return to UK after decades in MY. Malaysian Privately Paid Medical Attention costs peanuts compared to Rip Off Britain - with TWO internationally renowned hospitals. AND if you cannot afford the Bills in MY to go private - the MY Government Hospital charged >>> Heart Attack, ICU for 3 days, medication for six months= £100 stg. [I(Hello - NHS!!)[/I]

p.s. For those who aren’t aware, Robert Gaines-Cooper is an international businessman who is fighting HM Revenue & Customs over domicile and residence issues. Gaines-Cooper has been an executive on a large Nasdaq-listed business for some time, and also has other business ventures - in other words a Fat Cat who has been playing "Games" with HMRC for years - allied with his professional international advisers. There is nothing better than watching professionals (in this case HMRC and International Tax Accountants) with pistols drawn and sabres rattling I know of a couple of such "Gamesters" (no more non-resident\non-domiciled than the Queen!) - and suspect they are very very high on HMRC's Watch (and Hit) List. Mega-bucks draws mega-attention....... Glad I am not one of them, though!
djoerk is offline  
Old Sep 25th 2008, 10:50 am
  #34  
Banned
 
Joined: May 2008
Location: Lagrange 2
Posts: 1,507
Bijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond reputeBijilo123 has a reputation beyond repute
Default Re: Retirement in Malaysia and MM2H Scheme

Thankyou.
Bijilo123 is offline  
Old Sep 25th 2008, 11:18 am
  #35  
Just Joined
 
Joined: Sep 2008
Posts: 3
stanfsim is an unknown quantity at this point
Default Re: Retirement in Malaysia and MM2H Scheme

Many thanks again all for your replies. I was beginning to fear the old addage of "Death & Taxes............." was going to be inescapable. But having read some of the experiences on the link you posted Djoerk I can see that it is indeed possible to get uk company pensions paid gross as I'd hoped. Am now doing some more research myself with HMRC to set the wheels in motion.

The info you've provided is much appreciated - thanks again.

Now then - about Death..................................
stanfsim is offline  
Old Sep 25th 2008, 2:05 pm
  #36  
Forum Regular
 
djoerk's Avatar
 
Joined: May 2008
Location: Currently Edinburgh, Scotland
Posts: 68
djoerk is a jewel in the roughdjoerk is a jewel in the roughdjoerk is a jewel in the roughdjoerk is a jewel in the rough
Default Re: Retirement in Malaysia and MM2H Scheme

Originally Posted by stanfsim View Post
Now then - about Death..................................
Will take longer to catch up with you in your Malaysian Paradise, I think.

Best wishes
djoerk is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.