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Whatever will be, will be

By Dennis Radford
This article is published on: 3rd June 2019

It was announced last week that Doris Day had passed. She died on May 13, 2019, at the age of 97, after having contracted pneumonia. Doris Mary Kappelhoff was born on April 3, 1922. Just imagine the changes Miss Day witnessed during her lifetime.

Don’t waste your time trying to second guess.
Whilst the ongoing saga of Brexit and the numerous delays can be frustrating, we really should make the best of the additional time this gives us.

Do you remember the panic across the Expatriate community on the initial Brexit announcement?

  • You must ensure you residency application is processed in time!
  • You must ensure your Social Security and Health Care are in place!
  • You must change your driving license!

We are likely to have until 31st October 2019 before we leave the EU, which means you have additional time to put these things in place.

There are, of course, other areas where we may want to use the extra time positively.

Did you know?
In the 2017 Spring Budget, HMRC announced a new 25% charge on overseas pension transfers. Most expats living in Spain were unconcerned by this as it did not apply to pension transfers within the EU.

This is likely to change post Brexit. It is widely thought that HMRC in the UK will apply this 25% charge to your pension transfer post Brexit.

Use this time wisely. If transferring your pension is suitable for your situation, you should act now and save the charge being applied to your pension.

Since the day David Cameron, the then Prime Minister, announced that there would be a referendum on the UK´s membership of the EU, people have been fearful due to the uncertainty as to what will happen post Brexit.

In the last three years, life has continued in the financial world and investment markets have risen significantly. At the same time, inflation hasn´t disappeared just because Brexit is on the menu.

With dividends reinvested, £100,000 would be worth around £136,000 as at 18th February 2019. If we allow for inflation, this would be more like £128,000 but still 28% up. If the £100,000 had been left in a bank account, with no interest, which is commonplace these days, the true value would now be more like £91,000. Waiting for Brexit has cost the wait and see person £9,000.

Brexit proof your investments using top UK financial institutions
If you are living in France, Spain, Luxembourg or Belgium, did you know that certain large, household name UK financial institutions offer products locally from
Dublin based sister organisations?

These products are both EU regulated and tax efficient in the country where you live.
For example, one of the largest Insurance companies in the UK offers a fully French compliant (Dublin based) Assurance Vie. Another offers a Branch 23 product, which is tax efficient in Belgium. Both companies offer a tax efficient solution for Spanish residents.

As a result, should the UK leave the EU, you can still invest with companies whose names you know and trust, in a tax efficient manner, in the country you call home.

Please feel free to contact me if you would like to discuss any of these points in more detail.

Article by Dennis Radford

If you are based in the Costa Blanca region you can contact Dennis at: dennis.radford@spectrum-ifa.com for more information. If you are based in another area within Europe, please complete the form below and we will put a local adviser in touch with you.

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