Brits only, bereavement pack.

HA HA Davy Certainly Interested BUT Not quite yet. Thanks for this, I have Printed of For File and put the Link in Azons Folder for when that inevitable time comes. "The fat lady" has not sung for me yet, and you still got to buy me that beer before I even consider going or letting Azon Do an application for this

Jack

 

Hmmmmmmmmmm Oh yea I had forgotten that, Thanks for the reminder

JP

 

Very helpful, at least my wife will have money for the party when I'm gone

 

Your more upto date then i am Davey and i in uk !!!!

 

Well of course Davy is our own Super Sleuth!

JP

 

Being new to this forum as I am, I didn’t wish my very first post to be so ‘formal’ but for the sake of clarity (and ensuring such a worthwhile enterprise as DI maintains credibility at all times) I couldn’t help myself posting a reply to this thread.

The information and links to HMRC Double Taxation forms are completely irrelevant to UK Expats living in the Philippines. Likewise, the statement “if you are paying tax on your UK Pension you should not be” is wrong. Here’s why:

UK Occupational and Basic State Pensions are paid NET of Basic Rate Tax. Always have been, always will be. If you are an Expat (non-ordinarily UK resident) you may opt to have your pension paid directly into an overseas Bank account. However, some countries (such as E.U. member states) will tax this ‘income’ as earned/unearned income – which effectively means you have been taxed at source AND taxed again in the country you reside. Taxed TWICE = DOUBLE Taxation.

To avoid such unfair treatment, where an individual could be taxed twice, a “Double Taxation Agreement” [DTA] is often in place where HMRC will allow your Pension income to be paid GROSS – but only when it can be proved that it is being taxed in a receiving country and only where a commensurate level of Tax is being levied.

As it is highly unlikely that any Income Tax is being levied on your ‘foreign’ Pension income/earnings in the Philippines – Double Taxation does NOT apply. In most instances Expats do not trust local banks and would be prudent to have Pension Income paid into a UK account and simply use Online Banking to transfer sums to a local account as and when required (therefore not allowing financial institutions in the Philippines access to privileged information about your income et.al)

Leading on to…

To be classified as an Expat (HMRC: “Non-Ordinarily Resident”) you need to prove you have made a ‘Clean Break’ from the UK and severed your ties. The advantage of dong so is predominantly for individuals of higher net worth, owning properties in the UK and/or receiving rental income on said properties. As a qualifying Expat you would not be liable to Income Tax on UK derived rental income (there is a HMRC form you can complete that any Estate/Rental Agency can use to pay your rent to you GROSS) and on selling a property, you are not liable to Capital Gains Tax (CGT). Although the latter is under review!

Many UK domiciled individuals living overseas ‘think’ they are an Expat for the purpose of the above benefits – only to be proved VERY wrong by HMRC when it comes to being challenged. IF you rent property in the UK, it has to be for a minimum of 12 months (standard shorthold tenancy agreement will suffice) or be actively ‘available’ for rent at ‘a reasonable level commensurate with other properties of it’s type’. Simply maintaining a post-paid mobile phone account has been used by HMRC to successfully challenge a persons residency – so EVERYTHING needs to be outside of your name, rented out and no UK contractual obligations etc….

Many UK Expats in the Philippines will not be particularly concerned about such implications if they are of more modest means. In which case, maintain a UK Bank account, maintain registration with your local doctor, have your Pension paid to you in the UK (where it will be indexed linked in-line with RPI(ish)) and you will have less problems if you ever need to return and sponge of the NHS!

Sorry if I went off on a tangent – but I felt these were points worth highlighting to others.


Me? Just moved with my family to Amlan. UK Expat living in Asia for past 8 years – international consultant for 25 years. Hope to meet fellow DI members ‘out ‘n about’ over the next few weeks/months for a few cold ones.