Even more reason to come to us early for migration and pension transfer advice

One of the biggest barriers to delivering our financial advice quickly to our clients is our reliance on obtaining information from occupational pension scheme administrators. Often, the delay at their end is also due to awaiting details from the government relating to the Guaranteed Minimum Pension (GMP). This, along with various other details, is vital for us to make an assessment as to whether or not to transfer your pension to an overseas scheme known as a Qualifying Recognised Overseas Pension Scheme (QROPS).

This delay has been an ongoing issue and is unfortunately only set to get worse in the near future. Industry figures have recently warned that HM Revenue & Customs will struggle to cope with a deluge of information requests from pension scheme trustees attempting to equalise GMP payments; a problem that has existed for 20 years and now needs to be addressed.

In order to deliver our migration advice to you in plenty of time before your departure and, where appropriate, arrange for a transfer of your benefits to an overseas pension scheme, it therefore becomes even more essential for you to come to us as early as possible for your free initial consultation.

Please contact us on 01483 202072 for more information.

The Gaines-Cooper case impacts on thousands of migrants

On 16th February 2010 the UK Court of Appeal ruled that Robert Gaines-Cooper was liable to pay UK tax despite living based in the Seychelles.
Mr Gaines-Cooper, 72, bought a French-style plantation house in the Seychelles in 1976. He renovated it at a cost of £1.6 million and it has long been his chief residence. He had kept to HMRC’s rules by spending no more than 91 days a year in Britain.
However he also has a house in Henley-on-Thames, where he keeps his collections of paintings, guns and classic cars, and where his second wife and son lived for some time. Mr Gaines-Cooper’s son went to an English school in 2002 and his will was drawn up under English law.
Although the three Court of Appeal judges expressed “some sympathy” for Mr Gaines-Cooper, they ruled that he had never qualified for exemption from British taxes as a non-resident. They said that England had remained the “centre of gravity of his life and interests”. Lord Justice Moses felt Mr Gaines-Cooper had failed to show “a distinct break” from his social and family ties in the UK. Now he may be pursued for tax bills dating back to 1993, estimated at about £30 million.
The ruling is a serious blow for Brits who are based overseas but visit Britain frequently. After the court’s decision Her Majesty's Revenue & Customs vowed to increase its efforts to catch similar people.
Clearly the Gaines-Cooper case means financial planners need to brush up on their international tax expertise, so where do you go for advice? We believe the advice offering at Montfort International plc stands head and shoulders over others. Montfort has 15 years experience in the field of international migration and pension transfers, so contact them now on 01483 202072 or info@miplc.co.uk.

Important changes to UK Pensions may impact your migration plans

On 6th April 2010 the age at which you are able to access retirement benefits from your occupational and personal pension schemes will change from age 50 (currently) to age 55.
The change will affect everyone who is due to reach the age of 50 prior to 6th April 2010 and those who are currently aged 50 but will not reach age 55 prior to 6th April 2010.
What Does This Mean For You?
If you fit this profile, you would not be able to access the pension commencement lump sum from your pension(s) until you reach age 55. If you had planned to review your pensions and access benefits prior to the age of 55, from 6th April 2010 you will not be able to do so. This may have a major impact on your upcoming migration, particularly if you were counting on using your pension commencement lump sum to finance your migration.
What Should You Do Now?
Whether you wish to access the benefits from your pension(s) in the near future or not, we recommend that you speak with a suitably qualified financial adviser to advise on your options in good time prior to 6th April 2010. It is also imperative that any advice takes into account your future migration.
How Else Can Montfort International Help You?
Australia and New Zealand have different tax systems to the UK. As a result any UK assets, investments, savings or pensions that a migrant may have could potentially be taxed “Down-under”. In addition to offering financial advice regarding pensions, Montfort International is able to offer assistance with helping obtain a visa for either Australia or New Zealand residency through our network of Registered Visa Agents.
For further information on how you can benefit from Montfort International’s years of experience of pension and QROPS advice, financial and tax advice and/or visa assistance, contact Nick Bond or Paul Lawson-Tyers on 01483 202072. Alternatively please visit our website www.miplc.co.uk.

Top 10 financial questions for would-be migrants

When considering living outside the UK, ask yourself the following questions, say migration finance experts Montfort International plc.
1. Should I sell or rent out my UK home?
2. Shares – Do I sell? Do I buy more and if so when?
3. Offshore Investment? Will it work for me?
4. Pension Funding - When do I stop contributing or when do I put more in?
5. Do I transfer my Pension Fund and if so, when and to what?
6. Sterling is extremely weak at present so can I control the foreign exchange rate I get on the money I transfer and if so how?
7. What happens if I don’t like my new land and decide to come back?
8. Should I have a UK Income Protection policy or a local one?
9. UK State Pension? What do I do?
10. Life Policies. Should I cancel them before I go – what do I do?
Whatever your financial intentions, seeking guidance early from the qualified advisers at Montfort International (freephone 0800 018 3571) before you finalise your migration plans can help you to a more comfortable life abroad.

ECHR to rule on UK State Pensions for those retiring to Oz and NZ

There has been a two-hour hearing at the European Court of Human Rights (ECHR) today of a challenge against the way the UK state pensions legislation penalises those who retire to certain countries.
British state pensions remain payable to those who move to another country after retirement, but it is frozen at the rate it was when they leave Britain unless their destination country has an agreement with the UK.
Around a million British pensioners live overseas; about half of them in the European Economic Area, Switzerland and countries including the US, Jersey and Jamaica that have reciprocal agreements with Britain. Those pensioners benefit from the annual pension increases in line with UK inflation as if they still lived in the UK.
Australia and New Zealand are among those countries with no such agreement, so some half a million retirees do not benefit from any increases in the rates of UK pensions after they retire or, if they have already retired, the day they emigrate.
The UK Department of Work and Pensions says the government is concentrating on the needs of pensioners living in the UK. In 2005 a House of Lords ruling agreed that those migrating abroad do so voluntarily and in doing so put themselves outside the primary scope and purpose of the UK social security system.
The ECHR judgment is not expected until the spring of 2010.