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Expat financial management should be part of EU debate

One financial advisor with an interest in expat wealth management told British press, “A fundamental EU rule is you should only pay social security contributions in one country. If you are UK tax resident, but work for an employer in mainland Europe, you will normally pay social security contributions in that country instead of UK National Insurance. Without renegotiation, Brexit could result in dispute between nations as to where the social security liability lies, or worse, a liability in both nations,”

It is not just expat wealth management and healthcare that form the chief concerns of British expats in Europe; there are also worries about the cultural and lifestyle impact that any proposed Brexit might have.

And expats are not alone in feeling concerned about the impact of leaving the EU. Last week the pound took a dramatic nosedive in its value against the Euro, with most saying the fall came as a result of Boris Johnson, Mayor of London, voicing his strong backing of the “Yes to Brexit” vote.

To compound worries, long-term expats may not be able to have their say in the vote as there is a fifteen year rule in place under which UK expats who have lived outside the EU for fifteen years or more are not allowed to participate in a referendum. However, those in this position are not without power. They can still make their views known among family and friends and by sharing them over social media.

If you are concerned about how Brexit could affect you, or your loved ones living abroad, contact Blacktower to discuss the ramifications of a “Yes” vote on expat wealth management.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

To Brexit or not to Brexit, that is the question

400 years of Shakespeare and we are still pondering over the question! 

I recently returned from London – more specifically the City of London – and was rather surprised to find out that the financial ‘experts’ were still in a state of flux, arguing over the theoretical economical fall out, on the day after of the fast approaching in/out referendum. I came to the conclusion, after pouring through reams of editorial columns from “would be” financial gurus, that the prognosis relating to the likely impact on the FTSE100 on the 24th of June – the day after – was that the general consensus converged on a simple equation; if the in campaign wins the day, there would be an immediate 5% appreciation. Conversely, if the out campaign has it, the FTSE100 would suffer a dramatic 10% loss.

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Many Grandparents missing out on full state pension

Grandparents and FamilyThe ex-pensions minister Steve Webb is urging the government and the HMRC to do more to alert grandparents to all the pension perks they’re entitled to after it was revealed that the overwhelming majority are not receiving the full state pension. By missing out on a particular benefit, unknowing eligible grandparents are missing out on £231 a year. Over the course of their full retirement, this could possibly lead to a loss of thousands of pounds.

It is a scheme called the Specified Adult Childcare Credit. It is thought that only 1,300 grandparents are taking advantage of it despite 100,000 being eligible (a mere one per cent). The scope of the problem was found out by Webb when he sent a Freedom of Information request to the HMRC.

The purpose behind the Specified Adult Childcare Credit is to allow grandparents who give up work completely to help raise their grandchildren the chance to claim National Insurance (NI) credits.

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