Affecting Uk Nationals....

[scottishjohn]

Generally, the state pension is almost the same as the personal allowance (which still applies if non-resident) so tax on that in the UK will be minimal. If you have a personal pension the government thinking is that you have made payments from the UK and had tax relief on them and now have to pay tax on them even when non-resident.

However, if you have yet to take your personal pension there is provision to allow you to move that pension to the country in which you are now resident. However, it is not possible to move it to every country without incurring a charge and they may in certain circumstances take forty percent off the total, so you have to be very careful what you do.

If large sums are involved it might be an idea to move to a third country for a year to gain residency there and then move the pension there before moving back to Thailand. If you have a private company pension but have not yet taken it, you can move it to a Self Invested Personal Pension (SIPP) for more flexibility in the future and the ability to move it to the country where you are resident.

That is the basis of what you can do, as I am some way from using my own SIPP I do not yet know the details about moving it to Thailand, and/or which third countries would be ideal from a tax point of view (the revenue ban countries where the pension can simply be converted to cash, BTW).

Sounds complex but if large sums are involved, worth looking at as you can avoid 40 percent tax in the UK and local Thai taxes as well by having it paid out in a third country but pretending to the Thais you are living off savings.

Also, as far I know Thailand does have a tax treaty with the UK and I am sure I have read about some expats getting a tax rebate out of the Thai system as you don't have to pay tax in both countries.

And on the original topic, if you are UK non-resident you do not pay taxes in the UK on offshore accounts (my accountant just writes non-resident in the relevant section rather than giving details).

But be aware that the 90 day rule alone is no longer set in stone and even if you obey that and the revenue thinks you are visiting the UK habitually (as in having a wife/house there and coming every month for a couple of days, say) they may decide that you are still resident. Eventually, if Brown and Co have their way they will declare you resident in the UK if you have any property there even if rented out - that is my guess anyway! Worth bearing in mind as property prices peak and rental yields fall off in the UK - ie good time to sell now! Capital gains tax on property is not payable if you have been non-resident for more than six years.

Gregchambers waffles on in (a shallow) depth about pensions (which is only one aspect of the topic)etc as if he is an expert, ignores the basic points and then states “that is my guess anyway!

Any chance of sticking to facts/rules. I have provided the HMRC link, why not read it, then make an erudite statement, if possible!