In Focus News & Insights

Plans have been released by Brussels to introduce a travel tax on post-Brexit UK travellers. British people will no longer be able to travel freely to Europe without paying a "travel tax" and being forced to fill out a form under plans unveiled by Brussels.  The US-style visa waiver scheme is one of the first concrete signs UK citizens will not be permitted the privileges they once had, to move across European borders unhindered.

The nose-diving post-Brexit pound is causing anxiety and practical financial problems both for British expats already in France and those who are planning to soon move there for their retirement, making it especially important that all concerned make positive and informed choices when seeking a QROPS transfer to France.

There can be no doubt that the pound's fall has been dramatic; in the months since June it has dropped 15% against the value of the euro, greatly reducing the financial leverage of some expats with a QROPS in France.

On 3rd of November, the High Court ruled that Theresa May’s plan to trigger Article 50 early next year without consulting Parliament would not be allowed.  This is a massive blow to Theresa May who had intended to use royal prerogative to move ahead without consulting parliament.

As an expat myself, I have been keeping a close eye on the news relating to the British people's decision to seek an exit from the EU. Our newspapers are filled to the brim day in and day out with commentary from the 'Brexiteers' and 'Remainers'. Everyone seems to have an opinion as to what will take place, how it will look and what actions you need to take – but the basic facts at this moment in time are that ‘we don’t know’ - it is all speculation.

Great news for the clients of expat financial services: the government has announced proposals to abolish the 15-year time limit on the right of expats to participate in UK general elections.

The policy statement, which was published as part of document entitled "A democracy that works for everyone: British citizens overseas", details the government's idea of ensuring rigorous checks on the identities of expats so that they can register to vote without suspicion of fraud.

Furthermore, cost analysis performed by the government predicts that ending the 15-year rule and implementing an expat voting registration scheme will actually cost only a six-figure sum; far less than the millions of pounds some experts have previously claimed it would require.

Tax avoidance and tax evasion have received substantial media attention in recent years, with reports on the tax avoidance strategies employed by wealthy individuals and corporations hitting the headlines.  

In 2012, it was revealed that comedian Jimmy Carr was one of many high net worth individuals involved in the Jersey-based K2 tax scheme, which sheltered a portion of his income from HMRC. In the ensuing public backlash he issued an apology and withdrew from the scheme. 

Pensions transfers for expats may become simpler if the Department for Work & Pensions follows through on plans to drop the requirement for consumers to receive accredited advice before making an expat pension transfer.

News of the DWP's plan came via a consultation paper published on 30 September. However, before the government gives the go-ahead to any such change in the law as is it relates to pensions transfers for expats, it is first looking for the views of experts and stakeholders.

The value of having expat regular savings has been underlined by a recent survey which showed that the typical 55-year-old borrows £6,785 against the value of their home in order to take a holiday, with others borrowing an average of £58,850 in order to buy a holiday property.

"With an average spend approaching £7,000 for holidays, travel is a popular choice for those unlocking cash from their homes, often alongside other uses to improve their lifestyle in retirement," said Dean Mirfin, technical director at Key Retirement, the firm behind the survey.