Retiring Abroad - will I still be subject to UK tax?

CosmicWasher

If retiring abroad* with no intention of ever return, and taking all assets including transferring occupational pension using ROPS,  but still being in receipt of UK state pension, does that still make you liable for UK taxes, including IHT on death?

* Assume retirement abroad happens when non-dom is scrapped and tax liability is based on residency. 

Silvertabby

What exactly do you mean by 'occupational pension?  Is it a DB/final salary pension scheme?

If retiring abroad, normal procedure would be for your UK pension scheme to make monthly payments to your overseas bank account.

zagfles

CosmicWasher said:

If retiring abroad* with no intention of ever return, and taking all assets including transferring occupational pension using ROPS,  but still being in receipt of UK state pension, does that still make you liable for UK taxes, including IHT on death?

* Assume retirement abroad happens when non-dom is scrapped and tax liability is based on residency. 

Just on the bolded bit - might not happen, govt looks like u-turning on non-dom status after mass exodus of millionaires costing the treasury billions. 

Voyager2002

zagfles said:

CosmicWasher said:

If retiring abroad* with no intention of ever return, and taking all assets including transferring occupational pension using ROPS,  but still being in receipt of UK state pension, does that still make you liable for UK taxes, including IHT on death?

* Assume retirement abroad happens when non-dom is scrapped and tax liability is based on residency. 

Just on the bolded bit - might not happen, govt looks like u-turning on non-dom status after mass exodus of millionaires costing the treasury billions. 

I share your indignation, but this is not relevant to the OP. Non-doms are foreigners living in the UK.

QrizB

CosmicWasher said:

If retiring abroad* with no intention of ever return, and taking all assets including transferring occupational pension using ROPS,  but still being in receipt of UK state pension, does that still make you liable for UK taxes, including IHT on death?

As far as I'm aware, the UK (unlike the US, as one prominent example) doesn't generally try to tax its citizens if they're not tax residents of the UK.
Is there a tax treaty between the UK and your intended retirement country?

Bostonerimus1

How you are taxed once a UK non-resident will be determined by the Double Tax Treaty between the UK and where you live and maybe the DTA between where you live and the where the ROPS is situated and local laws. Government and private pensions and SP are often treated differently and ISAs will often become taxable if you become resident outside the UK. The ROPS is probably an unnecessary and expensive complication.

The UK also has some Estate Tax treaties in place so those might be relevant depending on where you will live, but generally, if you move all assets out of the UK and establish domicile outside the UK there should be no UK IHT.

poseidon1

CosmicWasher said:

If retiring abroad* with no intention of ever return, and taking all assets including transferring occupational pension using ROPS,  but still being in receipt of UK state pension, does that still make you liable for UK taxes, including IHT on death?

* Assume retirement abroad happens when non-dom is scrapped and tax liability is based on residency. 

If you were born in the UK so presumably British from birth,  what you will be seeking to show for IHT purposes is that you have wholly abandoned your UK domicile acquired by reason of birth and acquired an entirely new foreign domicile of choice. The process is not entirely straightforward, but the link to article below provides key information on domicile ( for IHT purposes) and how as a Brit you can go about losing it.

https://theprogenygroup.com/knowledge-hub/losing-your-uk-domicile-who-decides/

Incidentally, this is not widely known but a British person resident abroad ( whether or not UK  domiciled) can hold UK government gilts whilst abroad and on death the value of  such gilts are wholly exempt from UK IHT. The link below explains.

https://www.taxadvisermagazine.com/article/fotra-securities-question-residence-inheritance-tax