UK Tax Haven?

colsten

bowlhead99 wrote: »

Certainly someone with circa 60k or more of income and gains may prefer to be somewhere with a low income tax rate and no CGT such as Hong Kong, Singapore, BVI or Channel Islands, or perhaps UAE if you can put up with the human rights issues.

None of these places could ever compete with mellow british summer rain, fish and chips and warm beer.

badger09

colsten wrote: »

None of these places could ever compete with mellow british summer rain, fish and chips and warm beer.

I haven't been to BVI or Channel Islands, so can't comment. I agree re Singapore and UAE.

However, I have frequently encountered all of the above in Hong Kong.

My preference, though, is for a 3 hour Sunday 'brunch' with freeflow champagne, which, thanks to the low income tax rate & non existent CGT, is usually my son's treat. All I have to do is take him several kilos of British cheese in return

masonic

kidmugsy wrote: »

Is anyone going to name the individual who is expected to have that pattern of income next tax year? I suspect that he's Mr Nobody.

The example given in the other thread was of the low earning spouse in a wealthy household.

colsten

badger09 wrote: »

My preference, though, is for a 3 hour Sunday 'brunch' with freeflow champagne, which, thanks to the low income tax rate & non existent CGT, is usually my son's treat. All I have to do is take him several kilos of British cheese in return

WOW, how do you get the cheese past immigration with a straight face?

grey_gym_sock

bowlhead99 wrote: »

Certainly someone with circa 60k or more of income and gains may prefer to be somewhere with a low income tax rate and no CGT

hmmm ... next year (2016-17), if you have £17,000 interest + £32,000 dividends + £11,100 capital gains (that's this year's CGT allowance; i don't think next year's has been announced), making a total of £60,100, then you'll pay just £2,025 tax (7.5% on £27,000 of dividends).

i'm sure there are places you can pay less, but that is very low (about 3% of total income + gains).

badger09

colsten wrote: »

WOW, how do you get the cheese past immigration with a straight face?

No problem keeping a straight face. I don't find cheese that funny to be honest

I did check the regulations before my first visit and cheese isn't on the list of restricted foods.

He can buy some varieties from M&S but not his favourite vintage/mature cheddar, and it is 5 or 6 times the UK price. I'd rather he spent his cash on nice food and champagne for me :rotfl:

grey_gym_sock

badger09 wrote: »

I don't find cheese that funny to be honest

what about cheesy jokes?

colsten

badger09 wrote: »

No problem keeping a straight face. I don't find cheese that funny to be honest

it's the smell I was thinking of, and import prohibitions, mainly. Mind you, you can seal just about anything these days with one of those vacuum sealer machines, and I hope you get past the airport checks without having any of your packets opened.

badger09 wrote: »

I'd rather he spent his cash on nice food and champagne for me :rotfl:

Well, I'd rather hope he would, too! Otherwise a lot of that education you have afforded on him would have been wasted! :cool:

gt94sss2

masonic wrote: »

The basic rate tax band is 20% for income or 7.5% for dividends, so they will not receive that £31,900 tax free [edit: there is actually £32,000 in that band]. You've also missed the £5,000 nil rate band on savings interest for low income.

Will the £5,000 nil rate band on savings interest for low income exist next year though? I thought it was a one-off..

Regards
Sunil

masonic

gt94sss2 wrote: »

Will the £5,000 nil rate band on savings interest for low income exist next year though? I thought it was a one-off..

Yes, this seems to be a misconception propagated by the main site. Here is the summary of the situation planned for April 2016 prior to the summer budget.

"That means from April 2016, you won’t have to pay tax on your interest if your taxable income is less than £16,800.* "

The £16,800 being made up of the 2016/17 personal allowance (£10,800, now £11,000) plus personal savings allowance (£1,000) plus nil rate band (£5,000).

* This limit is now £17,000 owing to the increase in personal allowance announced in the summer budget.