Alan Hall: Blog
QROPS: Frequently Asked Questions
For an excellent comprehensive ‘FAQ’ on QROPS: A Qualified Recognised Overseas Pension Scheme, visit the following link QROPS: Frequently Asked Questions.
If this does not answer your question or for more information on LOW COST QROPS, contact us today!
Season’s Greetings from PFM International!
Best Wishes from Alan Hall and the rest of the team at PFM International…
UK Treasury Delays Residency Test Legislation
The UK Treasury has decided to postpone the publication of eagerly awaited draft legislation which would have established a statutory residency test.
The legislation had been due to be published in the draft Finance Act 2012 which was published by the Treasury recently. However, the Treasury announced it has decided to delay the draft legislation until the Finance Act 2013 and for the test to then take effect from April 2013, rather than April 2012.
In a statement, the Treasury said it decided to postpone the publication in order to give it more time to “consult thoroughly on the detail of these changes well in advance of implementation”.
It added: “The Government is committed to the form of the statutory residence test outlined in consultation. It will make a further announcement around Budget 2012 when it will publish its response to the recent consultation together with a further consultation on policy detail and draft legislation.”
UK Residency Test
The introduction of a UK residency test will come at a price, but one worth paying…
On 18 June 2011 the Treasury launched its consultation on a new statutory test for what constitutes tax residency in the UK. The new test is designed to provide certainty for taxpayers in assessing their residency treatment. While this certainty will be welcomed, it does come at a price and some of the permissiveness of the current regime will be lost. For many individuals, this will be a price worth paying. The new rules are intended to be introduced with effect from 6 April 2012.
The Safe Harbours
The effect of the new rules is firstly to introduce a number of ‘safe harbour’ guidelines within which an individual cannot be treated as tax resident in the UK. These are:
1. for those who have not been UK resident in the previous three years, spending less than 45 days in the UK;
2. for those who have been UK resident in the last three years, spending less than 10 days in the UK; and
3. working abroad full time.
At the other end of the spectrum, those who spend more than 182 days in the UK or who work in the UK full time will always be treated as resident.
Alan Hall’s Finance Tips: Low Cost QROPS
A Qualified Recognised Overseas Pension Scheme is an excellent option for people with a UK private pension who are living, or planning to live, overseas.
Here’s why:
- Greater control – more say over where your pension fund is invested
- Tax efficient – no tax to pay when drawing down your pension
- Inheritance benefits – possibility of passing on your pension fund to your beneficiaries, free from UK Inheritance Tax
- Easy to manage – numerous pensions can be consolidated into one QROPS
- No annuity – you do not have to buy an annuity within a QROPS
Do you qualify?
- Have you ever worked in the UK?…Yes!
- Did you contribute to a private or occupational pension scheme while you were there?….Yes!
- Are you UK non-resident or do you intend to become non-resident?….Yes!
- Do you have an existing QROPS that you may wish to transfer….Yes!
PFM International is currently offering a reduction on all fees for the life of a QROPS invested with us…that could mean thousands in savings over 10 years not including the capital reinvestment which would actually double your savings over this time!
All our clients funds are held in trust by the QROPS provider in Guernsey, Carey Group, and invested via Friends Provident International in the Isle of Man offering the highest levels of investment protection and security.
Call +66 (0)8-1764-3048 or Email to ask Alan direct for free, no obligation QROPS advice
UK Directory
Life in Chiang Mai: Fitting in
Considered a local delicacy, albeit in the street-food category, fried insects are sold on Chiang Mai’s famous Sunday Walking Street. Choose from grasshoppers, bamboo worms, silk larvae, crickets, weevils, ant queens and scorpions. The ‘menu’ changes according to the season while silk larvae and crickets are available all year round, scorpions are considered a rare delicacy…
I get asked for advice on a whole range of subjects in my role as CEC President and as an Expat myself, who has lived for 11 years in Chiang Mai. One of the issues that comes up again and again is, unsurprisingly, to do with cultural differences. There are far more grey areas in Thailand than there are in say, Europe or The States, and we, as Expats, have to learn to ‘fit in’ and accept that fact.
Now, I’m not suggesting you go as far as to enjoy eating bugs (though they are considered delicious and nutritious by the locals here in Chiang Mai), but fitting in here and going with the flow is a necessity if you want to enjoy your time as an Expat, and, let’s face it, guest, here in Thailand. I guess my main point is that you can’t apply U.S or U.K values here, you need to be much more flexible when dealing with Thai people personally or with the authorities.
A friend of mine recently moved into a place within earshot of a pig farm…he, in turn, started making noises about calling in the authorities to address the noise issue. For me, it’s a classic case of who was there first? That farm has been around for over 50 years providing a livelihood for the locals – I think it’s up to us to ‘fit in’ with them and not up to Thais to ‘fit in’ with us. Part of the reason we are here as Expats is because of the wonderful cultural diversity we find. Let’s not forget, the days of the British Empire are over…
For advice and assistance on any topic, Contact Alan Hall who is always happy to help.
Alan Hall’s Tips: Trusts
More invaluable advice from PFM Managing Director, Alan Hall
Why create a Trust? Because we can’t always know the road ahead…
What is a Trust? When you create a Trust you transfer all your assets into that Trust. You can still have access to these assets while you are alive; in fact, we will recommend you are a Trustee of your own estate. The one main benefit of all trusts is how they will keep your estate out of probate after your death. Trusts have been around in Britain since the Middle Ages. Today, the benefits of creating a trust are recognised throughout the world, especially in countries that have a legal system based on common law principles.
Alan Hall’s Tips: Tax Advice for Expats
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As an Expat himself, PFM’s Managing Director, Alan Hall, has first-hand experience of the many Tax issues facing Expats living in Thailand…
In what circumstances would I become non resident for Tax purposes?
For British Nationals, normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:
Your absence and employment from the UK covers a complete tax year (that is 6 April to 5 April)
You spend less than 183 days in the UK during the tax year
Your visits to the UK do not average 91 days or more a tax year over a maximum of four years
For a U.S Citizen or resident alien, your worldwide income is generally subject to U.S. income tax regardless of where you are living. Also, you are subject to the same income tax return filing requirements that apply to U.S. citizens or residents living in the United States.
Why Chiang Mai Expats Club?
PFM International’s Managing Director, Alan Hall, is also Chiang Mai Expat’s Club President.
I get asked this a lot actually – why and how did I get so involved in Chiang Mai Expats Club – I often ask myself the same question!
I first got involved when I set up a non-profit organisation called Chiang Mai SOS - I wanted to tell folks about it and I s’pose it seemed the first port of call. CEC was in its infancy back then and I ended up on the board and was later nominated by the other board members to be president. People don’t always realise that it’s a demanding role which takes up a lot of my time (and money on occasion!). So, why do it? Well, I guess I came to really enjoy the club. Myself and the other board members always felt there was a need for a CEC. It’s a place where people can come when they first arrive in Chiang Mai and be introduced to the Expat community and (hopefully!) meet like-minded people.
To be able to provide a place like that we needed to be able to offer quality guest speakers – which I feel we have done. In fact, that’s one of the reasons I enjoy it so much – you don’t half meet some characters!
Apart from all that – it’s my hobby. I’ve always enjoyed the challenge of organising it, along with the indisputable benefit of being able to introduce folks who are new in Chiang Mai to a city I love…
Chiang Mai Expats Club meets on the 4th Saturday of every month, 10am for 10.30am at the Shangri La Hotel, Chiang Mai. Everyone welcome.
Alan Hall’s Tips: Currency Rates
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Meet PFM International, Managing Director, Alan Hall with some helpful advice for Expats in Thailand.
The weak British pound and American dollar have given some serious headaches to British and American expats. A long-term expat has less to worry about as these fluctuations will balance out over the years and have little to no effect on them.
However, if you need to send large amounts of cash from your home country, consider using methods other than your bank, who may offer unfavourable rates. This article from Times Online gives an excellent overview of the money transfer services available.
Since April 2009 Thai banks have been levying a 150THB charge on ATM withdrawals from foreign accounts.
Alan’s top tip: Go into the bank itself with your passport and make a withdrawal from the teller in person. There will be no charge… (Some banks will not be able to do this; Bangkok Bank or Kasikorn can and will)
More Tips from Alan Hall coming soon…
Call +66 (0)8-1764-3048 to speak to him direct for free, no obligation advice based on over 25 years of experience.
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