ChiFRA

The UK tax office has reaped the rewards of its latest measures to tackle tax fraud. The past tax year netted HM Revenue & Customs (HMRC) £29 billion from tax evasion investigations, helping boost its overall revenue by 7%.

HMRC puts part of this success down to using their "full powers" to uncover secret offshore accounts. Over £2 billion was collected by "cracking down on people who think they can hide money offshore" they said, adding, "there are no safe havens".

For expatriates - who are likely to have financial interests overseas and need cross-border tax planning - this heightened scrutiny is an extra incentive to get your tax affairs in order.

5^th June 2017 is a notable anniversary for the Bank of England and British savers – it marks 100 months since the Sterling interest rate was cut to the historic low of 0.5%.

It has also been 10 years now since we saw a UK interest rate hike.  The last time the Bank’s Monetary Policy Committee raised its rate was in May 2007, up from 5.25% to 5.5%. 

Then the financial crisis hit and rates kept falling until they reached 0.5% in March 2009.  They remained frozen for years until we finally saw a move last summer – downwards.  The rate was cut from 0.5% to 0.25% in the wake of the Brexit referendum, with no change since. 

The last time rates were kept low for so long was around the Second World War.  Then the rate was held at 2% (which actually sounds good today!) from 1939 to 1951. 

With Article 50 triggered, Britain is on track to leave the EU in under two years, on 29^th March 2019. The surprise June UK general election is unlikely to change this, as the two key parties have committed to honour the referendum result.

While we still have no certainty about how Brexit will affect expatriates in Spain, there are steps you can take today to future-proof your financial planning.

6^th April 2017 sees the introduction of an inheritance tax reform that will reduce the amount of tax paid by most estates.  Announced in the 2015 summer budget, it effectively increases the inheritance tax threshold to a potential £1 million.  This figure is for a couple, and the increase will happen gradually over four years and only applies to property - with a number of limitations.  So will your estate benefit from a £1 million nil rate band or not?