Sam Orgill of ProACT Partnership highlights how UK & Cyprus Expats can take advantage of New Pension Freedoms
UK Budget Pension Changes
Pension Freedom came in 2015 and further changes are planned after consultation of the last year by the Treasury. This could affect the tax saving when adding into a pension, but should not affect the rules taking money out.
Under Pension Freedom you can still draw a 25% tax free lump sum; this may go in this budget? In addition, a new freedom to draw the whole pension fund is available to anyone over 55. The catch is you pay income tax in the year of drawing pension up to 40% on lump sums over £43,000.
Pension Tax Saving for Expats
If a Cyprus Tax Resident, you can pay just 5% on this pension freedom lump sum. – a tax saving of 15-35% for Expats who register to pay Cyprus Tax. This is the case even if the whole fund is paid into a UK bank account. You can also reduce the tax payable by timing pension withdrawals over a period of time to maximise allowances.
Tax Saving Tip: Consider drawing your pension lump sum as a Cyprus Tax resident. Review your options with ProACT Tax Saving Experts.
Free Review – Pensions Property Savings & Will
ProACT offer a Free Review of your Pension, Property, Tax Residence, Wills, Title deeds, property assets including identify inheritance tax savings. Keep up to date with the spring tax changes for expats living and working abroad.
Contact us to book a Free review. CONTACT US
Read more on our website www.proactpartnership.com/blog
Sam Orgill Tel +357 26 819 424