Survey: the good life ‘turns
sour’ for many expat Britons
BY HELEN BURGGRAF
Expatriate Britons are
struggling to cope with the
mostly weakening pound
in a number of key offshore
markets, a survey by
foreign exchange provider
Moneycorp has found, with
those in Spain described as
suffering the most.
Émigrés in Australia and
New Zealand, however,
appeared “relatively unaffected
by the weakening
pound”, the survey noted.
It also found expats “hit
hard” by problems in many
foreign property markets.
The findings echo those of
other recent surveys, as well
as the recent comments of
many financial advisers
HMRC lowers duty on non-EU imports
HM Revenue & Customs
has increased the value of
goods that individuals may
bring into the UK from a
non-EU country, or receive
through the post, without
needing to pay customs
duty.
Travellers arriving in
the UK by commercial sea
or air transport from a
non-EU country may now
bring in up to £390 worth
of goods for personal use
without paying customs
48
with expatriate clients.
The survey was conducted
in October and
November for Moneycorp
by consultancy Vanson
Bourne. It sought the opinions
of some 250 Europebased
UK expats, and
another 250 British expats
from Canada, Australia and
New Zealand.
Expats living in these last
two countries appeared to
be faring better than some
other Brits living far from
home. “Less than a quarter
of British expats in Australia
(23%) and New Zealand
(24%) said their spending
power had decreased,”
Moneycorp said.
Other findings of the
survey:
duty or VAT, a rise of £50.
This allowance excludes
tobacco and alcohol products,
which have separate
allowances, and fuel.
Those arriving by other
means, including by private
plane or boat for pleasure
purposes, may bring in
goods up to the value of
£270, HMRC said, up from
£240.
In addition, individuals
who buy goods over the
internet or by mail order
ADVISER
INTERNATIONAL
www.international-adviser.com
■ More than four in five
(85%) Spanish expats
say the value of sterling
has impacted them
financially, with three
quarters (79%) saying
that their spending
power has decreased as
a result.
■ Britons living in Germany
and Italy are also being
significantly impacted
by the fall in sterling, as
67% and 66% of expats
in these countries,
respectively, reported
feeling the pinch.
■ In France, the story is
similar, with nearly half
reporting they are being
impacted by the fall in
sterling; the figure in the
US was 61%.
from outside the EU will
now only be charged customs
duty if the value of
the package is above £135,
and the actual amount of
duty due is over £9.
Although the duty limits
have changed, import
VAT is still due on packages
valued at over £18.
However, if a package is
received as a ‘gift’, VAT
will only now be charged
if its value exceeds £40,
HMRC said.
OPINION
Why HMRC will not be
happy bunnies this year
QROPS are very much in
the news at the moment.
Recent newspaper articles
have screamed at readers
“Take your money and
run” (The Telegraph) and
“Get your money out of
Britain” (Sunday Times).
Much to the annoyance
of HMRC, it seems people
are doing just that. Recently
released figures showed
there was a 154% increase
in transfers to QROPS in the
2007/08 tax year compared
to the year before, while
uptake of new QROPS was
said to have doubled in the
last three months of 2009.
HMRC, which has
already penalised pension
rules abusers and closed
down Singapore as a
QROPS jurisdiction for misrepresentation,
will not be
amused by the headlines or
pleased by the growth of a
market that diverts revenue
from government coffers.
Regardless, for the right
person in the right place
Christopher Colleridge
Cole, head of corporate
services at Dubai’s
Globaleye, urges
advisers to consider
QROPS sooner rather
than later
QROPS are highly attractive.
Since April 2006 it has
been possible, providing
you have been non-resident
for five years, to:
■ receive your pension
free of tax (dependent
on where you transfer
it to);
■ avoid purchasing
annuities;
■ avoid an Alternatively
Secured Pension at 75,
resulting in losing 82%
of fund in taxes on
death;
■ unlimited fund size;
■ pass on to your beneficiaries
the balance
tax-free.
But to continue to enjoy
such benefits, more respect
needs to be given to HMRC
– quite simply, do not abuse
the rules and do not delay
making a transfer. Pension
legislation changes like the
breeze, and all the current
inflammatory press attention
could bring an ill wind
sooner than you think.
Hong Kong Expert Investor Forum
Meet the world’s top fund managers
Free to attend for financial intermediaries
For more information
about the International
Adviser Hong Kong
Expert Investor Forum
contact emily.proctor@
lastwordmedia.com
12 May 2010 · JW Marriott Hotel · Hong Kong
For information contact
emily.proctor@lastwordmedia.com
INTERNATIONAL ADVISER [www.international-adviser.com] FEBRUARY 2010
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