Tax and how to avoid paying too much on return
 

When I last posted we were going to live in France then tribal headquarters got the better of us and we are now returning to UK next year 2011. We left UK in 1984 so we desperately need information from someone who has recently returned to the UK and is familiar with bringing funds into the UK and advice on how to avoid loosing any income from it to the dreaded tax man... legally. Having lost a packet in the great financial crunch we would prefer not lose any more.
If anyone can help with tax advisors; what methods can be used to avoid tax; what sort of investments are good in the UK and what costs are involved.
We have used the net extensively but the more you read the more complicated it seems to get and the tax office web is as clear as dried mud. Some things you read about would cost more than the tax you would have to pay.
Any help, hints or advice would be greatly appreciated together with information how to avoid the pitfalls and potholes en route.

Re: Tax and how to avoid paying too much on return
 

Surely you need to talk to a UK tax advisor. I'd be very wary of Internet advice for something so complicated.

Re: Tax and how to avoid paying too much on return
 

I couldn't agree more. I was just hoping that someone might have dealt with a tax adviser that they could recommend. Trying to find one in the UK from Australia is not easy.

Re: Tax and how to avoid paying too much on return
 

This might be useful:

http://www.expatwealth.telegraph.co....age_info_id=40

http://www.ifaonline.co.uk/internati...+go+home+again

Re: Tax and how to avoid paying too much on return
 

You should take the advice of some lawyer in UK.

Re: Tax and how to avoid paying too much on return
 

You do not get taxed simply for bringing funds into the UK. :blink:

The UK likes people to bring funds in, it if good for the economy and all that.

Re: Tax and how to avoid paying too much on return
 

Try contacting 'Meow' - look on Middle East forum.

She is a well informed financial advisor who has a finger on every pulse.

She would probably give you basic advice via PM.

Re: Tax and how to avoid paying too much on return
 

I agree with Bermudashorts above, there's no taxes for simply moving back to the UK and transferring your funds in. May be we didn't understand the question. If they did that though no one would move back!

Re: Tax and how to avoid paying too much on return
 

the OP is also concerned about being taxed on investment income from his funds once in UK

yes, tax will be levied on worldwide sourced income, including investment income, this can't be avoided legally

if the sums involved are large, seek out a UK based tax consultant BEFORE you relocate, e.g. W T Fry

if not. why worry? just declare and pay the necessary...

Re: Tax and how to avoid paying too much on return
 

Thanks you guys for the information and also sorry for the late reply ... been away. I have had dealings with W Fry and so have other friends of mine. You have to watch them!! .... and they very often produce a large tome in reply, don't answer the question and try and charge you for stuff any tame idiot can get from the internet. They will charge you because they have put it on paper as if they are the only ones that knew it ....... I didn't fall for that one so probably can't go back. There are others that come up with weird and wonderful schemes to avoid paying tax but in reality their schemes cost more to administer than the tax you would have paid in the first place.
What I am really trying to find out but all the experts seem cagey about it is, once you invest and take out a salary from that investment, I know you can take the Capital Gains tax allowance off, I think at present it's £10600 plus your personal allowance before you pay tax on what's left but can any of the remainder be counted as "return of capital" if the investment was from tax paid funds as in the case of someone coming back to UK having been away a long time and 'Non Resident for Tax purposes in UK" who has saved that money and done the tax elsewhere. I know some of the income from Annuities can be counted as return of capital.
By the by, I didn't use Meow because I really need someone in UK who does the lot and fills in my tax return afterwards ... never was any good at those ........
Get's complicated don' it ............

Re: Tax and how to avoid paying too much on return
 

this is not my understanding, you seem to misunderstand the difference between a capital gain and investment income

I strongly suggest you do more internet research to find the answer otherwise you may be in for a shock come tax return time in UK

but, I'm willing (and would be most grateful) to be proven wrong...

Re: Tax and how to avoid paying too much on return
 

A capital gain would be from, say, income made on the stock market (not bank account interest) or a gain made from the disposal of an asset, etc. There is now a capital gains exemption of 10,100 p.a. (amount reduced from 10,600 in last budget) and then you start paying tax on amounts made in excess of this exemption. Any capital gain made in excess of the exemption is added to your personal income where you will taxed on the amount earned in the tax year above your personal income exemption.

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

Otherwise, if you liquidate everything in the country of your departure (and pay the taxes), you can bring the money into the UK free of tax.

Re: Tax and how to avoid paying too much on return
 

Thanks for that John5655. It seems it's as I thought i.e. take of your CG allowance and then take your personal allowance of what remains and that's your taxable income .... unless I have read the HM rules incorrectly.

Re: Tax and how to avoid paying too much on return
 

Meow is, in fact UK registered.
I think that you should concentrate on your tax form if that is the issue and separate investing from Tax as an activity. With investing you will never get a straight answer from an adviser - they can only offer alternatives. And you are going to pay for it handsomley too.
Good luck!

Re: Tax and how to avoid paying too much on return
 

And, there is so much free information out there on investing from the newspapers (Telegraph, Times, etc) to the financial web sites, I wonder if it is worth paying an advisor at all. The best blue chip dividend paying stocks and funds are well publicised and not a closely guarded secret. You just need the time and patience to plough through it all.