In her role as Technical Consultant at The GWM Group, Rebecca Ellis' main focus is to provide technical support to our Financial Planners around the globe, and this an often mean assisting with more complex multi-jurisdictional financial planning requirements.
The following case study focuses on a familiar scenario which we often come across at The GWM Group, and highlights the importance of taking international financial advice when moving to and from your home country.
I met with a British client aged 57 who has worked in the UK Oil industry for 25 years, and had moved to the Middle East with his employer, on a salary of 80,000 AED per month with the view to saving aggressively over his last three years before retiring. The client is wealthy, and has collected a portfolio of shares and funds over the years which are held by stockbrokers and on numerous platforms which he finds tiresome to manage. A number of the shares were given to him from his employer as part of a bonus structure, and now contain large capital gains in which he has little record of original costs.
The husband and wife have two daughters in their early twenties, and are keen to start succession planning. They intend on retiring in the UK, and therefore Inheritance Tax would be payable on their worldwide assets.
During the five years overseas, the savings target is a capital amount of £600,000. The husband has a large defined benefit pension scheme in respect of his employment which will cover the majority of his desired retirement income. He is keen to reduce the possibilities of a Lifetime Allowance Tax Charge on the pension scheme.
The husband and wife’s have amassed a considerable estate is in excess of £2m and they are keen to start Inheritance Tax planning to preserve wealth for their daughters without prompting a tax charge.
Rebecca joined The GWM Group as a Senior Paraplanner in June 2017, having previously worked in a Chartered Financial Planning firm in the UK. Since leaving university with a first-class honours degree in Financial Services, Planning and Management, Rebecca has achieved Chartered Financial Planning status and is a fellow of the Personal Finance Society. Working within GWM’s pensions department, Rebecca provides invaluable support to advisers around the globe by assisting them throughout the financial planning process provided to all clients.
Returning home can present a whole range of tax planning issues.
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