Expat financial services could help arrest income decline
New research has indicated that the income of British expats has fallen by 11% since 2005, meaning that there is now extra imperative for Brits abroad to benefit from the advice of the providers of expat financial services.
According to the study, the majority of expat pensioners live in countries within the Eurozone. As such it is possible that, for some, living and financial arrangements could be at risk in the event of Brexit, particularly as the value of their pensions has fallen by more than 4% over the past year.
A state of uncertain uncertainty
A very good friend of mine told me the story that just when you think everything is working well for you, that man with the spade pops out from his hiding place and smacks you right in the face. Now, I'm not talking about what happens in Glasgow when you’re walking home from the pub on a Saturday night (and I'm Glaswegian so I'm allowed to joke about things like that); I'm talking about 2016 and what faces each and every one of us this year – uncertainty. In fact, it could almost be classed as uncertain uncertainty. The key issue for British expats is obviously the UK referendum on 23rd June when the vote will be taken as to whether or not the UK will stay in the European Union.
New expat radio for Brits in France
It is thought that there are more than 200,000 British expats living in France and, although the country is only a short hop across the Channel, living there can sometimes be something of a sustained culture shock – even for the seasoned expat who has had years to acclimatise.
Yes, some expats still struggle a little with French life; whether it is because of confusion about making a QROPS or QNUPS transfer, difficulties negotiating France's tax planning bureaucracy or uncertainty as to how best manage regular savings.
Disclosure of assets
In light of the Panama Papers and their revelations, it would appear that it is not only tax evasion is in the headlines but also tax avoidance schemes. Evading tax by concealing income is illegal, avoiding tax by exploiting the tax rules technically is not.
To help tax authorities in various countries hunt out those individuals and companies trying to hide assets, the UK has recently signed a disclosure of asset agreement with Spain, Germany, France and Italy. What does this mean? It means that the UK, in partnership with France, Germany, Spain and Italy, have passed regulations that will lead to the automatic sharing of information about the true owners of companies, complex shell companies and overseas trusts.
Expats say they are being “penalised” for freedom of movement
There are around 4.5 million British people living the expatriate life, and with 1.3 million of these currently residing in the EU, it is easy to understand why there is mounting political pressure for the government to give them full voting rights in the upcoming referendum on the future of British involvement in Europe. After all, they have so much at stake, from their residency and tax status to the future of their expat financial services arrangements.
Panama Papers and the banks
At the moment, politicians across the world – especially, it seems, in the UK - are in the spotlight regarding their tax affairs. Banks, however, will also soon be in the spotlight, as by Friday 15th April they have been told to hand any information regarding their dealings with the law firm at the centre of the Panama Papers over to the UK’s Financial Conduct Authority.
As a result, pressure is growing on the City watchdog to launch a full-blown investigation into these explosive claims.
It has already become clear that nearly all of the major banks are involved to some degree, with a few well known Banks such as HSBC, Deutsche Bank, UBS, Coutts and Rothschild’s standing out more than others.
Details of McGregor’s estate opportunity to remember Cayman Islands work
It has been revealed that Harvey McGregor, the lawyer who innovated Grand Cayman as a tax planning centre for high net worth individuals, inspiring the growth of the financial services community in the Caribbean islands, has left an estate worth £1.4 million to his long-term partner.
McGregor had such a profound impact on the Cayman Islands wealth management sector that it is now home to the world's fifth largest banking sector while also at the forefront of the expat financial services industry; with both Blacktower and Rothschilds having offices in the British Overseas Territory. It is also ranked as the world's second leading tax planning destination, behind only Luxembourg and, in testament to the work of McGregor, has the highest standard of living in all of the Caribbean.
Tax evasion
As we all know we have been told time and time again that, because of the world´s economic state, we all have to pay as much tax to the governments as humanly possible and that, if we try to hide any money, we will be heavily penalised. Well, yet again it has been proved that there is one rule for us and another rule for them - by them I mean the 1% that are super wealthy, politicians, or large corporations.
Governments, tax authorities, journalists and experts on tax evasion and avoidance on Monday were digesting news of a major leak of confidential and reportedly revealing documents from a Panamanian law firm. Some are calling it the biggest leak of confidential information ever to hit the global financial services industry.