Brexit would prompt need for expat financial advice

Time is fast approaching for UK taxpayers and expats with UK tax obligations to ensure they meet the 30 September 2018 deadline laid down by HMRC for the declaration of all UK tax liabilities on overseas income and assets that fall under the auspices of the Requirement to Correct (RTC) legislation, Finance (No 2) Act 2017.

Non-compliance, even if it is inadvertent, has the potential to be met with uncompromising penalties, so anyone who is any doubt about their tax obligations regarding offshore investments – if you have expat regular savings or wealth management concerns outside of the UK – should contact their financial adviser immediately as a matter of urgency.

The penalty for most breaches is 200% of the tax that has been avoided. However this may be reduced to 100% depending on the taxpayer’s perceived level of compliance. That said, the minimum is 150% in cases where disclosure has been prompted by HMRC. Larger non-disclosures may be punished by further penalty of 10%

How is the outcome of the Brexit process likely to affect your purchasing power as a British citizen living as an expat in Europe?

This question should have priority in your checklist of expat wealth management concerns right now as British expat retirees in Europe are facing the reality of trying to cope with steeper rises in living costs than what is being experienced by their UK-based equivalents.

The revelation comes in the form of a data release from international technology-led services and payments specialist Equiniti. The firm found that British retirees who live in Europe have seen currency shifts contributing to a 14% rise in their cost of living – nearly double the UK’s domestic inflation rate of 7%.*