At least I’m relieved that the Spanish-compliant investment bond came to my rescue! It appears that each country’s tax code has various methods for getting rid of our money. They also provide means for us to legally avoid paying taxes, as long as we buy the proper financial investments.
This article will help you understand why budget changes have come into force as well as how they affect UK expats that no longer reside in the UK.
An NT (no tax) code is granted to individuals who receive UK-sourced income and reside in a country that has a double taxation agreement with the UK. Within a UK pension, including a SIPP, your gross pension is subject to PAYE income tax unless you personally apply to HM Revenue & Customs (HMRC) for exemption on the grounds that you are non‐resident.
Pension simplification came into effect from 6th April 2006, one of the policies introduced was the lifetime allowance for all UK pensions. The lifetime allowance is the limit on the amount of pension benefits that can be taken without incurring a tax charge.
The flexibility surrounding transferring your defined benefit scheme to a more flexible arrangement seems to be getting tighter and tighter through ever more stringent regulations by the FCA.
What is the lifetime allowance? Pension simplification came in to effect from 6th April 2006 to rationalise the British tax system in regards to pension schemes. One of the policies introduced was the lifetime allowance for all UK pensions.