emigrating - tying up UK finances
Discussion
Hello finance boffins! 
I'm moving to the UAE in April and as I get closer to the leaving date I now need to start looking at tying up my finances and sorting out tax issues etc. I'm either looking for direct answers on a few queries or advice as to which of my bank manager / accountant / A N Other would be best placed to advise me.
If it makes a difference, I should say that my Dubai residency visa is being sorted ahead of my arrival, so all I need do is take the medical and have my passport duly stamped. I thus have 3 main issues I am unsure about.
1] My house. I intend to put it on the market in the next couple of weeks and I am realistic in that will take a while to sell. Whilst no CGT would be payable under normal circumstances, will I have any taxes to pay as a result of living abroad? Note, I will be renting in Dub. so it would still count as my main residence.
2] My ltd. company, Set up in July 2010. I'll be instructing my accountant to dissolve it as soon as I've finished my notice period. I have enough cash in my business account to cover taxes, which I gather aren't payable until April 2012. Can I pay the taxes early or tranfer the money out so it is working for me until they're due?
3] My pension from my previous PAYE position. I'm still young so there's only £12.5k as a transferable value. I won't get a pension as part of my UAE package so I'd like to start a SIPP and transfer my current pension balance into it. What are the hurdles and implications of this?
Also, what happens to my state pension as a result of having a break in NI conributions if/when I return to Blighty?
Any advice appreciated. Thanks in advance.
I'm moving to the UAE in April and as I get closer to the leaving date I now need to start looking at tying up my finances and sorting out tax issues etc. I'm either looking for direct answers on a few queries or advice as to which of my bank manager / accountant / A N Other would be best placed to advise me.
If it makes a difference, I should say that my Dubai residency visa is being sorted ahead of my arrival, so all I need do is take the medical and have my passport duly stamped. I thus have 3 main issues I am unsure about.
1] My house. I intend to put it on the market in the next couple of weeks and I am realistic in that will take a while to sell. Whilst no CGT would be payable under normal circumstances, will I have any taxes to pay as a result of living abroad? Note, I will be renting in Dub. so it would still count as my main residence.
2] My ltd. company, Set up in July 2010. I'll be instructing my accountant to dissolve it as soon as I've finished my notice period. I have enough cash in my business account to cover taxes, which I gather aren't payable until April 2012. Can I pay the taxes early or tranfer the money out so it is working for me until they're due?
3] My pension from my previous PAYE position. I'm still young so there's only £12.5k as a transferable value. I won't get a pension as part of my UAE package so I'd like to start a SIPP and transfer my current pension balance into it. What are the hurdles and implications of this?
Also, what happens to my state pension as a result of having a break in NI conributions if/when I return to Blighty?
Any advice appreciated. Thanks in advance.
The Corporation Tax for the accounts year ened 31 July 2011 will be payable by 30 April 2011.
If the accounts for the year ended 31 July 2011 are submitted fairly promptly after 31 July 2011, HMRC will issue a statement which will allow the CT to be paid fairly quickly.
If the company has ceased trading by 31 July 2011 and once the CT due is paid, a striking off application can be submitted.
If the accounts for the year ended 31 July 2011 are submitted fairly promptly after 31 July 2011, HMRC will issue a statement which will allow the CT to be paid fairly quickly.
If the company has ceased trading by 31 July 2011 and once the CT due is paid, a striking off application can be submitted.
Edited by Eric Mc on Thursday 24th February 16:03
Probably too small a sum, but you could look at a mini QROPs for the pension. Other than that, look to setting up offshore investments - I'm with Zurich on the Isle of Man. It's a portable scheme with a 10 year period, all offshore and away from the prying eyes of HMRC. Definitely get an IFA out in Dubai, I got recommended a good one through a PHer, and they can be worth their weight in gold.
I assuem you've filled in your P80 to let the government know that you are no longer resident, and advised your banks to stop charging you tax on your interest once you are offshore?
I assuem you've filled in your P80 to let the government know that you are no longer resident, and advised your banks to stop charging you tax on your interest once you are offshore?
I'll take financial advice before moving the pension certainly, but I would imagine it's too small a sum to keep it as is. I don't have much faith in pensions so would prefer to have an investment plan under my own control.
I am currently looking into what I need to do to become non-resident Bing. Is it as simple as you make out? I need to know the implications of being a non-dom whilst still owning UK property and what the tax situation would be when it sells.
Given that I'm heading out at the start of the new UK tax year [and so will be spending less than the required no. of days in country to be taxes], does it matter if i'm non-dom or not until I sell the house?
I am currently looking into what I need to do to become non-resident Bing. Is it as simple as you make out? I need to know the implications of being a non-dom whilst still owning UK property and what the tax situation would be when it sells.
Given that I'm heading out at the start of the new UK tax year [and so will be spending less than the required no. of days in country to be taxes], does it matter if i'm non-dom or not until I sell the house?
Eric Mc said:
The Corporation Tax for the accounts year ened 31 July 2011 will be payable by 30 April 2011.
If the accounts for the year ended 31 July 2011 are submitted fairly promptly after 31 July 2011, HMRC will issue a statement which will allow the CT to be paid fairly quickly.
If the company has ceased trading by 31 July 2011 and once the CT due is paid, a striking off application can be submitted.
Eric, as a similar type question and all numbers for ease.If the accounts for the year ended 31 July 2011 are submitted fairly promptly after 31 July 2011, HMRC will issue a statement which will allow the CT to be paid fairly quickly.
If the company has ceased trading by 31 July 2011 and once the CT due is paid, a striking off application can be submitted.
Edited by Eric Mc on Thursday 24th February 16:03
If you have a Ltd company with say 500k in cash and you want to emigrate to Dubai for 5 years or more as I see it you should probably dissolve the company and take entrepreneurs relief at 10% and take the cash out. However, are you legally allowed to keep the company open and pay yourself say 50k a month and then shut the company down a year after you left. That way you pay yourself the cash at 0% income tax as you are in Dubai and avoid the 10% rate.
Is this legal?
You use the word emigrate but are you really emigrating, going for good, or are you moving to work in Dubai for a period? Are you sure you want to sell the house or do you need to sell the house? I let mine for the last 5 years I was abroad and it worked out very well.
L.F. (currently in Dubai again...good fun for a while but not sure I would commit myself here for good)
L.F. (currently in Dubai again...good fun for a while but not sure I would commit myself here for good)
I'd imagine I'll be doing at least a 3yr stint and would prefer to move on rather than come back. my house was never going to be 'home' so even when I return to the uk it won't be to come back here. renting is a possibility but I've just finished a 3yr renovation so would much prefer to sell rather than face tenancy hassles and future redecoration.
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