Ok, lets take the tax questions here instead. And maybe not just for the UKs!
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Thread: Tax questions, (UK)
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20-07-2006, 11:22 AM #1
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Tax questions, (UK, and other countries)
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Nothing is impossible, the impossible only takes longer time!
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20-07-2006, 11:28 AM #2
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Quote:
Originally Posted by Adster
Even offshore accounts SHOULD be declared to the IRS but you are taxed on the interest earned in your account and not the total amount of your account. But yes, once you bring it into the UK, you would be charged at 40% if you told them/they found out.
But if you bought a property abroad and kept all monies outside of the UK you wouldn't be charged the full 40%.
No doubt we'll have to pay some tax, but minimising it is sensible and won't leave you feeling 'raped' by good old Gordy Brown.
Reckon half anf half is the way to go, cash in a little at a time, get good advice from an accountant/tax expert, pay enough taxes legally and sleep well at night. The famous folk like Sean Connery and George Michael have the right idea by only staying in the UK no more than 83 days a year and avoid paying huge taxes.
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From Melg:
My husband is a UK chartered accountant and he knows a bit about this - Adster, in the main , is right - the 40% tax is not necessarily the case though - it very much depends on just how much you bring back to the UK (the rate of tax would be dependent on your total income for the year with 40% tax being the highest rate of tax). You can use up the allowances of yourself and also your spouse too (depending on your personal income levels), you can also gift money to friends and family up to about 3,000 GBP which doesn't attract tax (but is a PET, potentially exempt transfer under inheritance tax).
Adster is correct, you are taxed on the monies you send back to the UK - you SHOULD declare your offshore accounts to the Revenue but you only need to declare the INTEREST in those accounts (and even then you don't pay tax on it unless it is REMITTED, or sent, to the UK).
Trusts are another way in which you can protect assets and at the same time gain an income (of sorts) and also minimising your tax liability.
Pensions are another way of minimising your tax liability.
The 83 days a year outside the UK suggestion Adster is slightly incorrect. It is actually 183 days per year or an average of 91 days per year in any 4 year period. If you are in the UK for 183 days or more you will always be resident and subject to taxes. What the "stars" do is they ensure they aren't in the UK for 183 days in any year and that they, on a 4 year average aren't in the UK for more than 91 days in any given year (so your numbers work Adster but aren't quite right).
We no longer live in the UK so he told me to add this caveat as he hasn't practiced or followed the tax legislation for quite some time.
Hope this helps at least a little to some of you.
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Another thing you COULD do is have the money offshore, incorporate a property investment company, wire funds to the company in the UK (this could be your personal purchase of share capital which I don't think is taxable) and buy property (you can get loans to do so and the loan interest is set against the income) - you have the benefit of capital appreciation of the properties and the offset of interest against the income.
It is more complicated than that but I believe it also works - AND you have your money working for you.
You could also take a trip offshore, take a load of money out, bring it back to the UK, exchange it and the IR will be none the wiser (this isn't legal but chances of being caught would be minimal) - don't tell hubby I said this though
Re paying the 40%..... why do you think we LEFT the UK ?_________________________________________
Nothing is impossible, the impossible only takes longer time!
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24-08-2006, 10:44 PM #3
Raditz, what do you say about the tax in Sweden? Should be capital gains, 30%, right?
K
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17-09-2006, 12:52 PM #4
Anybody in UK know any good tax advisors, I'm going to need help before i make any expensive mistakes.
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09-10-2006, 02:14 AM #5
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neno How much to build a better team to go with that football stadium.
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09-10-2006, 02:19 AM #6
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I think the US government should put a Lien on the entire country of Iraq . . .and then lean on them to repay the cost of removing Saddam. I'll take my payment in $1 a gallon gasoline for say . . .the next ten years.
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09-10-2006, 02:39 AM #7
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I hate TAXES
Individual Income Tax Rates-2006
STATE INDIVIDUAL INCOME TAXES
(Tax rates for tax year 2006 -- as of January 1, 2006)
---Tax Rates---
# of
--Income Brackets--
---Personal Exemption---
Federal Tax
State
Low
High
Brackets
Low
High
Single
Married
Child.
Ded.
ALABAMA 2.0 - 5.0 3 500 (b) - 3,000 (b) 1,500 3,000 300 *
ALASKA No State Income Tax
ARIZONA 2.87 - 5.04 5 10,000 (b) - 150,000 (b) 2,100 4,200 2,300
ARKANSAS (a) 1.0 - 7.0 (e) 6 3,399 - 28,500 20 (c) 40 (c) 20 (c)
CALIFORNIA (a) 1.0 - 9.3 (x) 6 6,319 (b) - 41,477 (b) 87 (c) 174 (c) 272 (c)
COLORADO 4.63 1 -----Flat rate----- -----------None-----------
CONNECTICUT 3.0 - 5.0 2 10,000 (b) - 10,000 (b) 12,750 (f) 24,500 (f) 0
DELAWARE 2.2 - 5.95 6 5,000 - 60,000 110 (c) 220 (c) 110 (c)
FLORIDA No State Income Tax
GEORGIA 1.0 - 6.0 6 750 (g) - 7,000 (g) 2,700 5,400 3,000
HAWAII 1.4 - 8.25 9 2,000 (b) - 40,000 (b) 1,040 2,080 1,040
IDAHO (a) 1.6 - 7.8 8 1,159 (h) - 23, (h) 3,300 (d) 6,600 (d) 3,300 (d)
ILLINOIS 3.0 1 -----Flat rate----- 2,000 4,000 2,000
INDIANA 3.4 1 -----Flat rate----- 1,000 2,000 1,000
IOWA (a) 0.36 - 8.98 9 1,269 - 57,106 40 (c) 80 (c) 40 (c) *
KANSAS 3.5 - 6.45 3 15,000 (b) - 30,000 (b) 2,250 4,500 2,250
KENTUCKY 2.0 - 6.0 6 3,000 - 75,000 20 (c) 40 (c) 20 (c)
LOUISIANA 2.0 - 6.0 3 12,500 (b) - 25,000 (b) 4,500 (i) 9,000 (i) 1,000 (i) *
MAINE (a) 2.0 - 8.5 4 4,550 (b) - 18,250 (b) 2,850 5,700 2,850
MARYLAND 2.0 - 4.75 4 1,000 - 3,000 2,400 4,800 2,400
MASSACHUSETTS (a) 5.3 1 -----Flat rate----- 3,575 7,150 1,000
MICHIGAN (a) 3.9 1 -----Flat rate----- 3,100 6,200 3,100
MINNESOTA (a) 5.35 - 7.85 3 20,510 (j) - 67,360 (j) 3,300 (d) 6,600 (d) 3,300 (d)
MISSISSIPPI 3.0 - 5.0 3 5,000 - 10,000 6,000 12,000 1,500
MISSOURI 1.5 - 6.0 10 1,000 - 9,000 2,100 4,200 1,200 * (s)
MONTANA (a) 1.0 - 6.9 7 2,300 - 13,900 1,900 3,800 1,900 * (s)
NEBRASKA (a) 2.56 - 6.84 4 2,400 (k) - 26,500 (k) 103 (c) 206 (c) 103 (c)
NEVADA No State Income Tax
NEW HAMPSHIRE State Income Tax is Limited to Dividends and Interest Income Only.
NEW JERSEY 1.4 - 8.97 6 20,000 (l) - 500,000 (l) 1,000 2,000 1,500
NEW MEXICO 1.7 - 5.3 4 5,500 (m) - 16,000 (m) 3,300 (d) 6,600 (d) 3,300 (d)
NEW YORK 4.0 - 6.85 5 8,000 (n) - 500,000 (n) 0 0 1,000
NORTH CAROLINA (o) 6.0 - 8.25 4 12,750 (o) - 120,000 (o) 3,300 (d) 6,600 (d) 3,300 (d)
NORTH DAKOTA 2.1 - 5.54 (p) 5 29,700 (p) - 326,450 (p) 3,300 (d) 6,600 (d) 3,300 (d)
OHIO (a) 0.712 - 7.185 9 5,000 - 200,000 1,300 (q) 2,600 (q) 1,300 (q)
OKLAHOMA 0.5 - 6.25 (r) 8 1,000 (b) - 10,000 (b) 1,000 2,000 1,000 * (r)
OREGON (a) 5.0 - 9.0 3 2,650 (b) - 6,550 (b) 159 (c) 318 (c) 159 (c) * (s)
PENNSYLVANIA 3.07 1 -----Flat rate----- -----------None-----------
RHODE ISLAND 25.0% Federal tax liability (t) --- --- --- ---
SOUTH CAROLINA (a) 2.5 - 7.0 6 2,570 - 12,850 3,300 (d) 6,600 (d) 3,300 (d)
SOUTH DAKOTA No State Income Tax
TENNESSEE State Income Tax is Limited to Dividends and Interest Income Only.
TEXAS No State Income Tax
UTAH 2.30 - 7.0 6 863 (b) - 4,313 (b) 2,475 (d) 4,950 (d) 2,475 (d) * (u)
VERMONT (a) 3.6 - 9.5 5 29,900 (v) 326,450 (v) 3,300 (d) 6,600 (d) 3,300 (d)
VIRGINIA 2.0 - 5.75 4 3,000 - 17,000 900 1,800 900
WASHINGTON No State Income Tax
WEST VIRGINIA 3.0 - 6.5 5 10,000 - 60,000 2,000 4,000 2,000
WISCONSIN 4.6 - 6.75 4 8,840 (w) - 132,580 (w) 700 1,400 400
WYOMING No State Income Tax
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DIST. OF COLUMBIA 4.5 - 9.0 ) 3 10,000 - 30,000 1,370 2,740 1,370
Here's FEDERAL
Federal Tax Brackets - Edward Jones: Making Sense of Investing
Tax Brackets for 2005: Individuals
Marginal
Rate Single Married Filing
Jointly Head of
Household Married Filing
Separately
10% 0 -
7,300 0 -
14,600 0 -
10,450 0 -
7,300
15% 7,300 -
29,700 14,600 -
59,400 10,450 -
39,800 7,300 -
29,700
25% 29,700 - 71,950 59,400 -
119,950 39,800 -
102,800 29,700 -
59,975
28% 71,950 -
150,150 119,950- 182,800 102,800 -
166,450 59,975 -
91,400
33% 150,150 - 326,450 182,800 - 326,450 166,450 - 326,450 91,400 - 163,225
35% over 326,450 over 326,450 over 326,450 over 163,225
I envy everyone who lives in no state income tax states . . .now I know why SGS lives in Alaska.
Its just not right that I'll be losing almost 45% right off the top. That will be a factor in how much cashes out right away
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09-10-2006, 02:52 AM #8
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09-10-2006, 02:53 AM #9
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Do the math. If you can buy a house in Nevada (pretty close to home for you ) for less than the tax you would pay to California,( or even close to the same $) Buy the house in Nevada and use it as your primary residence PRIOR to cashing in your Dinars. It's not illegal to position yourself in a way that would minimize your taxes.
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09-10-2006, 02:57 AM #10
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Oz, Those dam taxes .....thats why I have all my notes in 1k and 5k dinars none higher, you got to cheat a little, it would be un American like not to.....LOL
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