UK Tax Free Savings Secured for Expats
Sam Orgill of ProACT Partnership discusses how Expats can get UK Tax Free Savings in a secured financial environment
Interest from Banks and Bonds
From April 2016 a £5000 tax saving income allowance exists in the UK. This saves £1000 tax. Yes you can earn £5000 in interest tax free.
Also the UK no longer charge tax on bank interest at source, from 2016 you will have to declare and pay tax on saving in a UK tax return or your country of tax residence.
Tax Saving Tip: Build up savings for UK interest free of UK at source and Cyprus Tax
High Income Shares
Share Dividends in UK are no longer taxed at source with a 10% tax credit. The first £5000 of dividend income is tax free. This is new tax free allowance. Consider a high dividend share portfolio holding to receive additional tax free income. The dividend tax rate is then 7.5% for basic rate tax payers, so again it is a great alternative source of low tax income.
Tax Saving Tip: Consider high yielding share dividend for UK interest free income and 0% Cyprus Tax for Expats
If you are Expat and Cyprus tax resident you pay no tax on savings interest or dividends in the UK, but you must declare all income in your Cyprus return for 0% tax assessment all savings income worldwide.
Property Rental Income
There is still an £11,000 personal allowance available to UK Expats for any interest, dividend or rental income. Under the double taxation treaty an expat can pay tax on savings in their resident country. Property Rental income is taxed in the country it arises. Now you can earn up to the personal allowance without tax on property rental income.
Above this 20% UK tax is due. You should make sure you complete returns to reclaim tax at source.
Free Review – Tax, Wills, Inheritance, Property
Register for tax Savings. Organise your savings and investment income for maximum tax savings. Declare income for 0% tax for expats in Cyprus.
ProACT offer a Free Review of your Tax, Savings, Wills, Inheritance and Property issues for Expats living and working abroad. Contact us to book a Free review
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Sam Orgill ProACT Partnership Expatriate Advice