Moving back to the UK, what's the best arrangement for tax?

Randvegeta

Ahh the joys of being young and mobile. I was living in Lithuania for 3 months, and as my business is located in Hong Kong, was required to come back and work. I have been here for the last 4 months and will be here for 1 more month before moving BACK to Lithuania.

No fiction I'm afraid. Just a lucky sod who is free to move around, and pay little tax.

The opening post is not 'hypothetical'. My parents really are moving back to the UK, and was simply curious about what can be done to minimize tax.

Randvegeta

Always nice to see your Le Troll.. Pardon me, I meant Le Loup.

Cook_County

Randvegeta wrote: »

Ahh the joys of being young and mobile. I was living in Lithuania for 3 months, and as my business is located in Hong Kong, was required to come back and work. I have been here for the last 4 months and will be here for 1 more month before moving BACK to Lithuania.

No fiction I'm afraid. Just a lucky sod who is free to move around, and pay little tax.

The opening post is not 'hypothetical'. My parents really are moving back to the UK, and was simply curious about what can be done to minimize tax.

So is the business UK resident? Are you UK resident? Why is your Lithuanian and HK income not taxed in the UK if you are habitually a UK resident?

musharoom

RE: UK pensions.

It is possible to invest in a UK pension scheme to benefit from tax relief. Then if your parents decide to leave the UK, they can either keep their pension in the UK and eventually use it to provide an income from the UK (so it will be subject to income tax at that point), OR transfer the value of the pension to a qualifying recognised overseas pension scheme (QROPS). This is a special kind of pension transfer that is permitted by HMRC allowing them to take their pension with them tax-free (up to a limit called the lifetime allowance). There are severe tax-penalties for transferring to a scheme that is not actually a QROPS though so be sure to check! Search "QROPS pension transfers" on HMRC website for full info!
Personally I'd recommend your parents take advise from professional tax specialists and financial advisers!