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What’s the most tax efficient way for an expat to save for retirement?

Financial discussion for any financial queries for Expats
dspp
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Re: What’s the most tax efficient way for an expat to save for retirement?

#149820

Postby dspp » July 3rd, 2018, 9:44 pm

DiamondEcho wrote:Thanks DSPP, but alas companies like this need such thorough ID checks these days (like embassy certified copies of passports etc) before they'll interact with you, that there will not be enough time for hurdles like that. So right now I'm thinking I'll just unwind the position and then/likely buy it back 30/+ days later. It might be better to face a present gross trade cost of a couple of £k, than a future CGT cost of many multiples of that.

... shame the UK tax code is so impenetrable...


You may be surprised. They are at the personal end of the spectrum. However I would sell and rinse if I were you, perhaps by staging within something similar but not exactly the same.

regards, dspp

DiamondEcho
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Re: What’s the most tax efficient way for an expat to save for retirement?

#149871

Postby DiamondEcho » July 4th, 2018, 8:10 am

dspp wrote:You may be surprised. They are at the personal end of the spectrum. However I would sell and rinse if I were you, perhaps by staging within something similar but not exactly the same. regards, dspp


Thanks. I was in contact with three advisors recently, with a view to sorting out the best account/tax structure for the future, before I relo back into the UK, but the 'pre' ID requirements, even before getting some suggestions floated, led me to give up. Once I'm back though, I am going to get tax-efficiency [etc] sorted out for good, so will be coming back to this topic in future.

I've considered selling and re-investing in the same sector, I'll look into this today, AZN is the obvious parallel to GSK in the pharma sector, but I'll approach it with a blank sheet and see what comes up. Another option is re-investing via top-ups across existing holdings, well, ones that currently appear robust. I'll see how it looks. ...Or an outright new 'chip' in a new sector, but it'd have to screaming at me pretty clearly for that I think.

I wonder if the 30-day sale>repurchase rule even applies if you're non-resident. Ah well, I suppose the IR are achieving what they perhaps intended, not understanding their rules, so we gold-plate what we fear they might be.

p.s. re: 'similar but not the same' - there's a thought, wonder if there is any mileage in switching into the ADR's - or if that would open up it's own IRS/tax issue. I'll see...

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Re: What’s the most tax efficient way for an expat to save for retirement?

#150164

Postby SeagoonN » July 5th, 2018, 12:34 pm

Here's a thought on the 30-day issue:

If you are non-resident and you sell UK shares and then buy them back, even on the same day, what interest would HMRC have in those transactions? Presumably none whatsoever as you are just a "foreign" investor and any tax/CGT implications in your country of residence are your lookout.

Obviously, HMRC cannot enforce the 30-day rule on a non-resident as that is outside their jurisdiction so the only question that remains is can they enforce it on someone who subsequently becomes resident within 30 days? I would have thought not as the original sale/buy-back occurred while being non-resident. I also doubt that your broker sends a report to HMRC each year detailing all the transactions relating to "Mr DE of Bangkok". After all, why would they? Even if they did why would HMRC be in the slightest bit interested?

However, this whole 30-day thing may not be an issue if you are deemed to be non-resident during the tax year in which you return to the UK. There is a long HMRC document about residency at:

https://assets.publishing.service.gov.u ... 078500.pdf

Basically, if you meet one any of the automatic overseas tests for a tax year, you are automatically non-resident for that year, even if you have arrived part-way through that year. Have a look and see if that makes things any easier.

Regards,
Neddy

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Re: What’s the most tax efficient way for an expat to save for retirement?

#176651

Postby jaizan » October 27th, 2018, 9:25 pm

If you are working in Thailand, why not look at investing it in Singapore ?

They don't tax your dividends AND I believe if you are not resident there, you don't pay capital gains tax either. Although you certainly want to check the capital gains point.
I have also read that Thailand doesn't tax you on overseas income. You want to check that by an independent source too.

So potentially quite a good tax situation.

Obviously if you return to the UK, then it's not as good as having an ISA, but you can only contribute to an ISA if resident in the UK.
On the other hand, if Corbyn got elected, then Singapore is about the right distance away & there would not be much incentive to come home.

I opened a bank account and a broking account in Singapore as a back up plan, just in case they screw our economy up to the extent where capital controls are reintroduced. Obviously this is all subject to UK taxes whilst I am living here.


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