leaving blighty for keeps, what about the tax?

for explanation of terms resident, ordinarily resident and domiciled as used for uk tax purposes see HMRC website (google HMRC residence leaving uk). HMRC are I believe taking an increasingly strict position on when an individual is "leaving" the uk. My general understanding of position (not to be relied on - you should take specialist tax advice)is that to confirm your residence position on departure (if you are doing things by the book) you should file a form P85 with your UK tax office; in general, uk pension income will remain liable to UK tax unless you become tax resident in a country which has a double tax treaty with the UK which gives taxing rights to that other country; each class of income eg property rental or interest or dividends or pensions needs to be considered separately as different rules apply generally to each.
If you become non UK resident you will not be able to rely on UK tax treaties to protect you from becoming liable to tax in countries you visit. So you should check the tax rules for countries you are visiting.
Also, (and just to complicate further),the position is different for different taxes eg income tax, capital gains tax, inheritance tax - each needs to be considered separately.
Good luck!
 
HMRC reserves the right to tax you on UK sourced income (pensions etc) even if you are non-resident and non-ordinarily resident in the UK unless, you are classed as resident in another country, and are paying tax there, and that country has a double-taxation agreement with the UK. The best deal I have found so far is Malaysia which has a double taxation agreement with the UK (so no UK tax on pensions etc) but charges zero tax on income raised outside Malaysia. In Cyprus, where we are at the moment, if you are non-resident and non-ordinarily resident in the UK - but are resident in Cyprus for more than 183 days 1 Jan-31 Dec, the personal tax allowance for pensioners is €3420 and you pay 5% tax on the balance over that.
 
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As far as HMRC is concerned you cannot be resident nowhere. It's the one fact I am sure of.

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You may be sure of this but I disagree. HMRC want you to be resident somewhere but all you need to prove to them is ' I am not a UK resident (for Tax purposes) and pay the tax I'm required to pay where I am resident' you do NOT need to show them where you are resident.

BUT you MUST get proper legal advice which will cost you and setting up your affairs to work in this manner will also cost you. For me it became easier and cheaper to be resident in Singapore.
 
Not being resident in the UK, or non-ordinarily resident does not prevent the HMRC from being able to collect tax from you. If your income is UK derived, e.g., state / occupational pension/dividends, it is liable to UK tax unless you can prove you are paying tax in another country (that tax might be zero as in Malaysia) under a recognized double taxation agreement. Slowly, but surely, with IT based tax record systems, the UK is reeling-in those who have escaped the net. The message is now, most certainly, if your income is UK derived, unless you are paying tax on it in another country under a double taxation agreement, be prepared to have to pay UK tax on it. Additionally, if you are caught in the net and forced to pay UK income tax, it follows that you are subject to the remainder of the UK tax regime, CGT, Inheritance Tax etc., etc.
 
Don't explain to me ... I leave all UK moneys in bank etc. paying the pittances of tax here and there. Why ? Better to let them take the few quid here and there than start discussions again.
I'm not at pension state yet - so that's no worry. Latvia has reciprocal tax agreement - so anyway if I pay here, I don't pay in UK etc.
 
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Not being resident in the UK, or non-ordinarily resident does not prevent the HMRC from being able to collect tax from you. If your income is UK derived, e.g., state / occupational pension/dividends, it is liable to UK tax unless you can prove you are paying tax in another country (that tax might be zero as in Malaysia) under a recognized double taxation agreement. Slowly, but surely, with IT based tax record systems, the UK is reeling-in those who have escaped the net. The message is now, most certainly, if your income is UK derived, unless you are paying tax on it in another country under a double taxation agreement, be prepared to have to pay UK tax on it. Additionally, if you are caught in the net and forced to pay UK income tax, it follows that you are subject to the remainder of the UK tax regime, CGT, Inheritance Tax etc., etc.

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One of the ploys now used by HM Govt. is the Office of Voluntary Disclosure. This office monitors all offshore accounts that it finds out about for UK nationals. EG : I have Barclays Isle of Man accounts, they are required to declare any moneys of UK persons to HMG ... then you receive a letter as myself and Ex did requiring us to register with OVD to obtain a ref. number. We then required to provide all financial records going back to ... I think it was 2001 Jan 1. You fill in a form and boy you'd better get it right - because if you don't it can be 60% tax ! PLUS a court appearance.
With my agreement via Portsmouth Tax Office - both myself and Ex were excused the process once OVD had verified it's validity.

Here's the link to the site that explains it all ... just in case some are STILL in the view that IoM and Ch. Isles are safe havens !!

Offshore - Office of Voluntary Disclosure

Frightening when you get the letter ! They reserve the right to determine penalty !!

The moneys in the accounts can be from any source - UK or foreign ... HMG doesn't care - it's all in the pot !
 
having been a tax exile from the UK, my experience is best to opt. for some tax regime that has a decent tax relationship with the UK. The Isle of Man does, I pay 20% tax to the IOM government and top up tax to the UK government as long as I spend more than 3 months in the UK, would not pay any top up tax if I said I lived mostly in the IOM. Many opt for IOM tax but actually live elsewhere. There is no CGT tax there, & when I sell my IOM properties, I won't be paying any UK CGT tax, & then can't live in the UK for (as I understand it, was 3 years) now 7 years.

It needs researching, but it was if you could prove an income of £20k pa, you were welcome to reside in the IOM.
 
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