Thursday, 8 March 2012

Tax Efficient Savings for Expats

What do Expats in Spain do with their ISA & Other Savings?

Maintaining the tax efficient status of your existing UK savings plans is often important. Once you become an Expat having moved to Spain, you are not entitled to the tax free elements of ISA, so you cannot add to your accounts.

But was it that tax efficient anyway? One little known fact about ISA and those predecessors, PEP and TESSA is that they are added to your estate on death and Inheritance Tax (IHT) is levied on them. Email me for details.

Now that’s not tax efficient is it?

So what you actually want, as an expat, is something like this;

  • The interest or growth on your investment grows tax-free

  • The benefit when you die is left to your spouse, heirs and successors as a tax-free benefit

  • Any income you take from your savings is only taxed on the interest element – not the cashing in of your capital

  • Instant access if required

  • Income if required, can be taken irregularly or on a monthly, quarterly, half-yearly or annual basis

  • No compulsory withdrawals if you don’t need them

Does such a scheme exist? Yes it does. If you’d like to know if you qualify for one please email me

QNUPS (Qualifying Non-UK Pension Schemes) were launched by the UK Government   and despite the term 'pension schemes' they are very different from UK pension plans. All of the six 'bullet' points above are available unlike a conventional pension scheme. You definitely need professional advice for these plans. email me to be referred to a correctly authorised adviser.

Financial Pages in Spain is a blog and website for British & Irish people who are expats or property owners in Spain. If you have a friend, neighbour or colleague who might benefit from this information please pass it on.

Recent posts;

Tax Avoidance and Tax Evasion

‘I thought about QROPS but it’s not for me’

La Torre Fx – Foreign Exchange, Q & A about this Service

Enjoy life in Spain!

David Goodall
Financial Pages in Spain