Recent reports suggest that the UK government may withdraw the tax-free personal allowance for expats or other overseas nationals who receive an income from the UK.
Chancellor George Osborne has indicated that all non-residents may soon have to pay tax on all their UK income – affecting all Britons who rent out their UK property, and even those drawing a Government pension abroad. It is estimated that this could decrease an expat couple's income by up to £4,000, thanks to the Treasury's proposals to restrict the tax free-allowance to those with a "strong economic connection" to Britain.
Angelos Koutsoudes, Head of www.OverseasGuidesCompany.com, a free resource for Britons looking to move or buy property overseas, warns,:
"Sitting alongside the upcoming change of regulation which will enforce capital gains tax on the sale of all residential property owned by overseas nationals and/or UK expats, we would urge expats to review all their sources of UK income.
"It's important to seek professional advice as soon as possible when planning a move overseas, to find out how these plans could affect you. One option may well be to sell the UK property and move pensions into a Qualifying Recognised Overseas Pension Scheme (QROPS). We deal with enquiries every day from concerned overseas property-buyers wanting to ensure their financial and tax affairs are in order. It's rewarding to be able to put our readers' minds at rest by connecting them with recommended tax and financial advisors, who are authorised to advise on all financial planning and taxation matters."