Is it possible to avoid paying tax on savings, I can retire now if i do ...

TheCountOfNowhere_2

Hi All,

I've cashed in my chips, sold my house ( at the peak, I hope), got rid of the ex, no kids, no dog, no debt etc.

I've managed to amass a fair amount of cash, £700K.

I've been looking at ways I can retire now on that sum.

I'm approx 40 years old so too young to buy an annuity.

I've been playing with some numbers and it looks like I could retire tomorrow on approx £32K per annum, index linked ( at 2% ) if I could get a return of around 6% from on that lump sum. I think that would be possible if I didnt have to pay tax on my savings/investments.

What I would like to do is to jump ship and head off into the sun and live (like a king) in Thailand. Not worried about owning a house so would rent there.

If I do that, is it possible to move my savings off shore and get my full savings interest tax free ?

If not, then how could I go about avoiding the tax ?

I have no plan to come back to this country.

Also, I thought I might buy an anuity when i'm 65 with half the residule amount of cash, which would be around half of £1.1 million quid by that point ( according to my spreadsheet), but I guess i could do that in any country?

I'd be interested in hearing anyones informed opinion.

Thanks in Advance.

dunstonh

An offshore investment bond may be an option for you depending on when you intend to move aboard. Although it would depend on the taxation treatment in Thailand.

I doubt an annuity would represent good value.

You really cannot do much until you know what you are going to be doing as the options that are best will vary depending on whether you stay in the UK or move to another country and it would depend on what country you move to.

TheCountOfNowhere_2

Definitely not staying in this country.

Im looking at putting my affairs in Order 2008 and leaving April 2009.

EdInvestor

In the UK, dividend income from equities is tax-free for (young) basic rate taxpayers. Interest on NS&I index linked certs is also paid tax-free.Then there´s your annual ISA allowance of 7.2k and your premium bond winnings.Should be possible to get 6% at the moment.

You´ll have to check the rules in Thailand for residents on overseas investment income tax.