25% Lump may not be tax free!
Geraint Davies
Founder and managing director of leading global financial planning firm Montfort specialising in cross-border solutions.
Thinking about drawing your UK pension???In which case you should expect to receive the above Guide. Slight issue, the powers to be never thought about whether it might not be suitable for people living outside the UK or perhaps planning to leave UK shores. One person we know has as a consequence of the inadequacy of this Guide triggered a ￡100,000 plus tax liability.
So there is an important message that needs to reach as many people as possible - Keep your wits about you!?
This is because UK Pension providers are sending this Guide "Your Pension - Your Choices" to both UK and non-UK tax residents. It can be not just misleading for non-UK tax residents but you could end up being guided down the wrong path.
You will see in the Guide time and time again reference to 25% tax free lump sums - there is no warning that this might not apply to those not living in the UK. This is totally inexplicable and there is absolutely no excuse for this oversight.
Tax rules of other countries when interacting with those of the UK behave in often strange ways and you may be entitled to anything from 0% to 100% tax free, such is how the tax implications work. Its all about structuring a plan to deal with these tax consequences.
If you like me to forward a copy of this Guide (so you can see for yourself) please contact me on [email protected]
领英推荐
Please be very careful as you could find yourself with an unwanted and unpleasant tax bill.?Please pass this message onto others you know. We have posted news about this on our web site www.montfort-intl.com
1. Go to menu and then
2. "News and Articles"
There you will find more information.
You might want to like the story or even pass comment.?I believe anybody living outside the UK with a UK pension should be warned of the dangers that their expected 25% tax free lump sum might be considerably more or considerably less - it all depends on how you approach this complex subject. As Einstein said make matters simple no simpler.
Founder and managing director of leading global financial planning firm Montfort specialising in cross-border solutions.
1 年Hope you are having a good time? Look forward to hearing from you
Management Consultant at Freelance, self-employed specializing in Entertainment and PR . Social Media
1 年No warning given to myself or my partner !
--
1 年Very sage advice Geraint, as I have only recently found out to my own cost thanks to your diligence.
Website Project Manager
1 年No one warned me and my husband at all about this. In fact our plans had factured in a tax-free lump sum which we had to abandon How can guides like these be issued to UK citizens living abroad and who is responsible for doing so?