Blog

Do I Need To Change My Driving Licence With Brexit in the UK, EU or Cyprus?

ProACT Sam looks at how domicile is affected by Brexit, and also at how is tax affected in the EU, UK & Cyprus.

ProACT Sam Explores Unions and Consequence of History in an Ever Changing World for Expats.

Today we will outline how a UK Expat Living and Working Abroad  can plan the business and family trips to the UK without impact on your UK non resident tax status.

For Expats Living and Working Abroad  with Pensions, Trading in Business with Euro, or investing in Overseas Property in Euroland, the UK GBP Sterling v Euro Exchange Rate can make a big difference.

There was a 30% fall in the GBPvEuro exchange rate after the UK Referendum in 2016 - Will Sterling GBP strengthen and recover with certainty after Brexit day? 29/3/2019. 

There is a New UK Cyprus - UK Double Taxation Treaty (DT) from 2018 that means any form of Public Service Pension will now be taxed in your home country.

For UK Expats in Cyprus, Pension tax could rise from 5% to over 40%.

The pensions affected are any paid for from government funds, including all civil service, local authority, NHS, military and any other body where the pension funds come from government funds.

You can keep your tax under the old rules but must act now by electing to stick with the old DT. The election is a concession for 5 years to use the old DT rules, as opposed to the new rules.

If you elect for the 'old rules' you in practice will pay the same tax arrangements as for 2018 and before.

You should complete and submit the letter to elect to use the old rules from the Double Taxation ('DT') 1974.

Free Down Load - Pension Election Letter - https://bit.ly/2t6wbTx

The UK Government have opened their settled status application scheme to EU Expats Living and Working Abroad in the UK.

This guarantees the Right of EU Expats to remain in the UK for their lifetime after EU Brexit - with a withdrawal treaty or with no deal.

EU expats must only be in the UK by 29/3/19 to enter this scheme.

A new Double Taxation treaty was introduced between UK and Cyprus in 2018 and it takes affect now.

Expats with Public Service Pensions  will now be taxed by their home government on this income - even if Living and Working Abroad  in Cyprus or UK.

This affects UK pensions paid to Expats in Cyprus and Cyprus Expats  Living in UK with Cyprus Pensions.

To Stop automatic changes to your pension you must take action now.

Today’s question seeks clarification in an uncertain situation after EU Brexit for Expats Living and Working Abroad. 

There are essentially two ways to leave the EU. 

The UK could agree a Withdrawal Treaty with the EU, meaning nothing would change during an extended transition period ( to December 2020) after Brexit day.