Personalised Portfolio Bonds are taxable for UK residents based on the T&Cs of the policy permitting such investments rather than the underlying investment.
UK OEICS, Unit Trusts and GILTS are excluded property for UK IHT when owned by non-UK domiciled individuals. However, the exclusion does not list UK: equities, fixed interest securities investment trusts, bank/ deposit accounts and ETFs.
The IHT nil rate band is available to everyone regardless of domicile, follow this link for information.
Thursday 18 August 2011
Friday 12 August 2011
Treasury consultation on a statutory definition tax residence
An interesting article from Citywire on the proposals from HMRC with regard to imposing a statutory test for tax residency.
Have you got a Will?
This Intestacy flowchart sets out what would happen to your estate in the event of passing away without a valid Will.
Tuesday 19 July 2011
Pension unlocking - High Court freezes pension reciprocation scheme assets
A High Court judge has issued a freezing order affecting over a million pounds of assets. Papers released by
the High Court revealed that three related firms - Ark Business Consulting, Ark Commercial Pension
Planning and Ark Commercial Retirement Planning - had been prevented by Mr Justice Henderson from
moving around £1.08m from the country to Cyprus. The monies frozen relate to fees billed by the firms
when a pension scheme member tries to "unlock" their monies while under age 55. The schemes claim to
be able to circumvent minimum pension age rules by writing loans (of up to 50% of the pension scheme
funds) to members instead of paying pension benefits.
The law firm McGrigors is acting on behalf of Dalriada Trustees and their pensions partner Ian Gordon said:
"Many of these so-called unlocking schemes test the boundaries of what is legal and effective, and everyone should be made fully aware of the risks. The types of organisations who typically market schemes
of this nature are often registered abroad and as such are not regulated by the FSA. We would advise
anyone who is approached with an 'unlocking' or reciprocation proposition to proceed with the utmost
caution. Some press reports have indicated that pensions reciprocation agreements are marketed as a
means to free up investment for capital in overseas real estate ventures, and that type of arrangement
should sound alarm bells."
The Pensions Regulator and the FSA also issued warnings about such schemes last month
the High Court revealed that three related firms - Ark Business Consulting, Ark Commercial Pension
Planning and Ark Commercial Retirement Planning - had been prevented by Mr Justice Henderson from
moving around £1.08m from the country to Cyprus. The monies frozen relate to fees billed by the firms
when a pension scheme member tries to "unlock" their monies while under age 55. The schemes claim to
be able to circumvent minimum pension age rules by writing loans (of up to 50% of the pension scheme
funds) to members instead of paying pension benefits.
The law firm McGrigors is acting on behalf of Dalriada Trustees and their pensions partner Ian Gordon said:
"Many of these so-called unlocking schemes test the boundaries of what is legal and effective, and everyone should be made fully aware of the risks. The types of organisations who typically market schemes
of this nature are often registered abroad and as such are not regulated by the FSA. We would advise
anyone who is approached with an 'unlocking' or reciprocation proposition to proceed with the utmost
caution. Some press reports have indicated that pensions reciprocation agreements are marketed as a
means to free up investment for capital in overseas real estate ventures, and that type of arrangement
should sound alarm bells."
The Pensions Regulator and the FSA also issued warnings about such schemes last month
Friday 17 June 2011
Non-Resident? Non-domicile?
Monday 23 May 2011
Index Linked Savings Return
Tax free, index-linked, 5 year savings from National Savings and Investments.
Pension - Fixed Protection
Anyone without primary or enhanced protection can apply for the new fixed protection. Individuals are only likely to need fixed protection if they think that their benefits from all registered pension schemes will be more than £1.5 million when they take their benefits. With fixed protection there are restrictions on further benefit
accrual after 5 April 2012.
accrual after 5 April 2012.
Friday 6 May 2011
HMRC clarify £20,000 Minimum Income Requirement
Recent press articles have suggested that an individual wishing to make a flexible drawdown declaration must
be in receipt of secure pension income of at least £20,000 that is actually paid or payable in the tax year in
which the declaration is made and this would appear to be the correct understanding.
For example, if the secure income consisted of a conventional lifetime annuity for £30,000 payable monthly in
arrears (i.e. £2,500 per month) when the annuity was first taken out the monthly income would have to be
receivable for at least 8 months of that tax year in order for the £20,000 requirement to be reached in the first
tax year.
Source Threesixty services llp
be in receipt of secure pension income of at least £20,000 that is actually paid or payable in the tax year in
which the declaration is made and this would appear to be the correct understanding.
For example, if the secure income consisted of a conventional lifetime annuity for £30,000 payable monthly in
arrears (i.e. £2,500 per month) when the annuity was first taken out the monthly income would have to be
receivable for at least 8 months of that tax year in order for the £20,000 requirement to be reached in the first
tax year.
Source Threesixty services llp
Monday 11 April 2011
Monday 4 April 2011
Junior ISA from November 2011
Tuesday 29 March 2011
Equitable Life pays bonus to leave
Equitable Life is to pay a one-off bonus of up to 12.5% to policy holders agreeing to transfer from the mutual insurer commencing 01 April 2011.
Monday 7 March 2011
Wednesday 16 February 2011
Income draw down rates reduce from April 2011
HMRC has released the new GAD Tables for 2011 which see the maximum income reduce from 120% to 100% in addition the tables create a lower income at certain ages.
Friday 4 February 2011
Delay to pension income changes
The Government Actuary’s Department (GAD) may not be in a position to publish the revised tables of relevant annuity rates in time for the changes in April and in view of the delay, may state that the final cut off for when reference periods must use the new GAD tables will be the 5th June 2011. Providers may therefore be able to use the existing tables for reference periods starting before that date.
Friday 28 January 2011
Residence, Domicile and the Remittance Basis
HMRC has published a revised version of their ‘Residence, Domicile and the Remittance Basis’ document.
The amendments continue the shift towards emphasising the need to show a distinct break in the pattern
of one's life when seeking to break residence.
The amendments continue the shift towards emphasising the need to show a distinct break in the pattern
of one's life when seeking to break residence.
Unsecured Pension 5 yearly reviews – clarification from HMRC
Three Sixty LLP have received clarification from HMRC regarding the situation where a client in unsecured pension, requests a review now but their pension year does not commence until after 6th April 2011.
HMRC have confirmed that (as expected) although the request may have been made before 6th
April 2011, if the new reference period starts on or after 6th April 2011 then the new limits and rules will apply to the ongoing fund, i.e. three year cycle and 100% income limit.
HMRC have confirmed that (as expected) although the request may have been made before 6th
April 2011, if the new reference period starts on or after 6th April 2011 then the new limits and rules will apply to the ongoing fund, i.e. three year cycle and 100% income limit.
Wednesday 12 January 2011
New deposit compensation limit for the UK
The FSA has confirmed that the new deposit compensation limit for the UK increased from £50,000 to
£85,000 per person, per authorised firm, effective from 31 December 2010. This is the Sterling equivalent of the €100,000 deposit compensation limit which came into force in all European Economic Area (EEA) member states at the end of 2010.
Further changes coming into effect on 31 December 2010 are:
• Fast payout rules, with a target of a seven day payout for the majority of claimants and the remainder
within the required 20 days
• Gross payout, which protects customers by ring fencing their deposits if they have savings and loans
with the same firm. Currently, any outstanding loan or debt would be deducted from any
compensation.
This new pan European requirement replaces the existing UK arrangement which has been in place since
2009, and which allowed for separate compensation cover for customers with deposits in two merging
building societies
£85,000 per person, per authorised firm, effective from 31 December 2010. This is the Sterling equivalent of the €100,000 deposit compensation limit which came into force in all European Economic Area (EEA) member states at the end of 2010.
Further changes coming into effect on 31 December 2010 are:
• Fast payout rules, with a target of a seven day payout for the majority of claimants and the remainder
within the required 20 days
• Gross payout, which protects customers by ring fencing their deposits if they have savings and loans
with the same firm. Currently, any outstanding loan or debt would be deducted from any
compensation.
This new pan European requirement replaces the existing UK arrangement which has been in place since
2009, and which allowed for separate compensation cover for customers with deposits in two merging
building societies
Friday 7 January 2011
All change for pensions.
HMRC have published a summary of the impending changes such as:
- the reduction in annual allowance
- the removal of the requirement to annuitise by age 75 and
- early access to pension saving
Let us know if you would like a translation.
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