UK Tax Haven?

Radioactive

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.

The problem is that visa restrictions mean it is not easy to choose to live in these places.

Radioactive

grey_gym_sock wrote: »

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).

I agree, and although few people can arrange their income to meet this combination of dividends and capital gains, those who can would have little reason (on tax grounds at least) to seek a tax haven in which to live.

Radioactive

Firstly, thanks to colsten for pointing out that I should have posted the question on the tax board. In my defence, I've only just joined this forum, and didn't realise there was a tax forum.

Apologies for the error in the 2016-17 Personal Allowance.

The question was prompted by an article I had read on the Investor's Chronicle website (as a new user I am not allowed to show the link), In particular, the following statement:

"Under the current regime, an individual who has no other income can receive approximately £38,000 of dividend income tax-free," says Nimesh Shah, partner at Blick Rothenberg. "From April 2016, the same individual will have a tax liability of £1,700."

This statement led me to think anyone who can arrange their income accordingly would enjoy a very good deal.