Robert Harris has over 25 years experience working for some of the major financial institutions in the City of London, including 12 years at Citibank where he was a Senior Banker. During his time at Citibank, Robert was responsible for global relationships with important financial institutions and instigated a number of landmark deals.
Robert is a founding partner of Forth Capital and has helped the company become the leading expat financial advisory company in Switzerland. He has been quoted in the Financial Times and numerous magazine articles.
For the www.knowitall.ch website, Robert invites various members of his team at Forth Capital to contribute blog articles on different financial topics that he thinks will be of interest to our readers.
By Dr Graham Brown, Forth Capital
The majority of FTSE 100 Company schemes are in deficit, which is where their pension liabilities exceed their assets and it is clear that the employer does not have the means to make up the deficit in the short term. The numbers are startling according to a Financial Times article on September 7th 2015:
By Mark Routen, Forth Capital
As the government first announced in the 2013 Autumn Statement and subsequently enacted in the Finance Act 2015, capital gains tax (CGT) applies to non-residents disposing of UK residential property. The tax is levied on gains arising on disposals after 5th April 2015 and only applies to gains made since that date. Before then, CGT did not apply to non-residents, other than those carrying on a trade in the UK, certain temporary non-residents or companies subject to the ‘annual tax on enveloped dwellings’ (ATED) charge.
The extension of the CGT charge goes some way to putting the UK system in line with other jurisdictions that charge tax on the basis of where the property is located rather than where the owner is resident.
By Dr Graham Brown, Forth Capital
Many clients ask if they should transfer their UK pension to a QROPS (Qualifying Recognised Overseas Pension Scheme) even if they think or know that they will return to the UK in the future. There are a number of reasons why a QROPS should be considered even if you are planning to return to the UK:
1) Avoiding Lifetime Allowance Charge
As discussed in a previous article, a transfer to a QROPS is a Benefit Crystallisation Event and so tested against the Lifetime Allowance (currently £1.25 Million) on transfer. If you have a pension close to this level you should definitely consider a QROPS transfer in case this level is reduced in the future or further changes are made.
2) Reduced UK Income Tax on Foreign Pensions
By concession, you will usually only pay tax on 90% of your foreign pension payments as 10% is exempt from tax.
By Alan Turner, Forth Capital
This year’s ‘Expatriate Market Pay Survey’ from ECA International has revealed expat pay packages to be at their highest in the east, and that Japan is the place where expatriates outside of the UK will be given the most sizeable financial package. The average package value for an expat middle manager is currently at 375,000 USD per annum making it the highest paying country, aside the UK, for international talent.
By Dr Graham Brown, Forth Capital
In my last blog I discussed the importance of the Lifetime Allowance in pension valuations. Now I will take a look at Lifetime Allowance Protection.
The concept of Lifetime Allowance and subsequent protection was introduced after ‘A’ Day in 2006. At this point, it was possible to apply for protection against a potential lifetime allowance charge. If you applied successsfully, you will have received a certificate from HM Revenue & Customs. If you have enhanced and primary protection you will have only one certificate. Enhanced protection will apply unless it is revoked or lost; however, it is no longer possible to apply for enhanced or primary protection. The advantage of this protection is that you will be able to crystallise your pension by moving to a Recognised Overseas Pensions Scheme (ROPS) without paying any Lifetime Allowance Charge. This is a substantial benefit for large pensions.
