Tax dodgers!

[DimPrawn]

http://www.guardian.co.uk/business/2...xavoidance.tax

Some wealthy Britons are exploiting a tax loophole that allows them to retire abroad with their UK pension savings and live tax-free.

Within a few years the loophole could cost the exchequer hundreds of millions of pounds as increasing numbers of retirees with large pension pots escape paying UK tax rates on their pension income.

Under new pension rules, which took effect in April 2006, wealthy pensioners are able to transfer their retirement pot overseas and after five years they can convert their fund into cash, often tax-free. The Isle of Man, Guernsey and Jersey appear on an approved list of destinations for UK pension transfers, alongside Switzerland, Australia and New Zealand.



Who would do such a terrible thing?!?

[DimPrawn]

Actually it is very tempting.

Stick in loads of money into your pension pot until it has the max anount (£1.65m) tax free.

Move abroad and take the pot with you.

After 5 years you can take complete control of the pot, no tax to pay, the whole lot tax free, spend it as you wish!



No that's what I call to Brown and co!

[NotAllThere]

...

Who would do such a terrible thing?!?

me!

Thanks for the tip.

[ChimpMaster]

Actually it is very tempting.
....etc

Yes but it would take a long time to build up your pot to that level, and by then the government would have closed this loophole (probably retrospectively...)

[Chugnut]

Yes but it would take a long time to build up your pot to that level, and by then the government would have closed this loophole (probably retrospectively...)

<tongue in cheek>
Who's ever heard of retrospective tax legislation? Nah, they'd never do that...
</tongue in cheek>

[expat]

<tongue in cheek>
Who's ever heard of retrospective tax legislation? Nah, they'd never do that...
</tongue in cheek>

Uh-huh. This lot at least seem to have a pretty fixed view that the purpose of the law is to prevent people from doing what is wrong.

If they "know" it is wrong, then you are expected to know it is wrong, and so not to be surprised when later law "clarifies" it.

[meridian]

This has been going on for years, but mostly small change from Kiwis and Aussies heading home and taking their opted-out second state pension with them.

NZ also has no capital gains tax, so that's nice

I blame New Labour, if this was a decent country to live in for the oldies then they wouldn't feel the need to leave.

[rootsnall]

Agreed, top tip. I'm sure there will be some catch for mere mortals though but it'll be ok if you are filthy rich and bunging a few the way of the current government.