City watchdog to probe pension freedom rip-offs

Many of our clients will have beside their property and / or bank accounts here in Spain still assets abroad.  This could be a property in the “home” country, a share portfolio in Luxembourg, an offshore bank account etc.

Most would have a Will covering these assets in their home country and without specific mention of the asset will have laid out their wishes in the form of for example “spouse to spouse on first death and on second death to the children” which would apply to all their assets.  

Should the person have not bothered taking on a Spanish Will then the heirs would have to go through the extra work and costs involved in relying on a UK or foreign will for the disposal of the Spanish assets.  The Will would have to be translated and apostiled adding delays and extra costs at a difficult time for the heirs.

A move from the UK to the Cayman Islands is, by very definition, a bold one. However, for the majority of expats who undertake such a life change, it is not one that they will regret. This is because, if you get your financial advice and wealth management in order, chances are that you will be able to enjoy all the benefits that go with living in one of the world’s true natural paradises.

Dealing with HMRC

Before any would-be Cayman Island resident leaves the UK, he or she should fill out HMRC’s form P85. This ensures that you have the opportunity to get your tax and residency status right and is particularly important if you will continue to have UK tax to pay – for example, if you have a UK-based business, a rental income, or are the director of a company.

Considerations include being listed as a non-resident landlord so that rent can be paid without UK income tax, splitting the tax year into resident and non-resident periods, and addressing the issues around capital gains tax.