UK expats still attracted to Europe despite Brexit
By Robbie Lawther, 4 Jul 19
Financial adviser network Blevins Franks discusses the three countries that keep Brits interested with their attractive lower costs of living, tax breaks, insurance bonds and non-resident tax schemes.
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Brexit has taken its toll on the UK and the EU, and it has left many UK expats thinking they may be stranded, especially with a no-deal looking ever more possible.
But it is highly unlikely Brexit will stop UK expats venturing to places around Europe because of the financial advantages.
France
France is often viewed as a country of relatively high rates of taxation. But British expats moving there to join their 330,000 compatriots can take advantage of a tax break which is already used by around one-third of French nationals.
This is the tax-efficient life insurance policy called Assurance Vie, a a financial ‘wrapper’ that holds long-term savings and financial investments.
Ir is one of the ways to protect and grow savings efficiently, according to Jason Porter, director of advisory network Blevins Franks.
“It’s also suitable for providing retirement income,” he said.
“There are no restrictions on when and how much you can withdraw. No tax is payable on dividends and income received, nor the gains arising on buying and selling of investments – they are all accumulated in the policy.
“Only the ‘profit’ element contained in any withdrawal is taxable. This ‘gain’ is taxed at a single flat rate of 30%.”
France also has attractive rules around the taxation of pension scheme lump sums, which might only be liable to 7.5% taxation.
This fits with the UK pensions freedom legislation.
Tags: Blevins Franks | Expat | France | Portugal | Spain
