Conachair
regular
Reged: 24/01/2004
Posts: 543
Loc: Canaries
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There's always the barter system, though I couldn't find the going rate for chickens/litre of antifouling. 
Now there's a joke waiting for someone...
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LadyJessie
regular
Reged: 21/11/2006
Posts: 1150
Loc: the Med
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Quote:
there are only two ways to pay no tax. One is to 'disappear'. But that means no bank accounts, no residence, illegal/cash employment, no contact with anyone in the home country, no boat insurance, no credit cards, no health insurance, no boat boat papers, no driving licence, no PADI licence etc etc. But you could still be tracked if you use your passport.So a new identity with a fake passport.
This is just not true. There are legal ways for a liveaboard to avoid paying tax without using these schemes. It is perfectly legal and above board, as long as you ensure that you select the legal way. Use a good tax advisor to save you some some money ( and maybe prison time...)
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Conachair
regular
Reged: 24/01/2004
Posts: 543
Loc: Canaries
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And another motley fool link. A lot of info & links here.
http://boards.fool.co.uk/Message.asp?mid=10933844
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KellysEye
regular
Reged: 23/07/2006
Posts: 759
Loc: Bonaire
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I've said before, we have taken (paid) advice from two specialist accountants. I'll repeat what they said. If you have income earning assets in the UK you will pay tax until:
- you can prove you have a residence (fixed address) in another country.
- you can prove you are registered with that country's tax authorites.
If you choose not to believe that fine. Also it's noteworthy that nobody here is explaining how they avoid paying tax when they have assets in the UK.
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LadyJessie
regular
Reged: 21/11/2006
Posts: 1150
Loc: the Med
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Sorry KellysEye; without knowing your particular circumstances, it still sounds to me that you either got bad advice or a bad explanation of why this does not apply to your specific personal situation. Does not mean that it is not possible for someone else.
Let me reiterate that it is perfectly possible to avoid paying any tax anywhere, but it requires certain circumstances of having achieved non-residency. This is not possible for everyone, but liveaboards fall into the category that can reach this position much easier than most so you owe it to yourself to check if it applies to you. Even if you fail to achieve non-residency, you might still be able to move your residency to a more favourable location.
To answer your specific question; assets in the UK is not a deciding factor, residency is. You might or might not have assets in a country, that does not decide your residency. I own stocks in the US, deposited in a US broker's account, but that does not make me a US resident for tax purposes. And it is absolutely not correct that you have to achieve residency in one country to be able to lose it in another. There are many examples of non-residency anywhere, just as there are examples of multi-residencies.
Again, this is a complicated area of tax laws so ensure that you ask advice from someone who has worked in this area.
Edited by LadyJessie (26/04/2008 18:48)
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Conachair
regular
Reged: 24/01/2004
Posts: 543
Loc: Canaries
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Now this is very interesting. Just to confirm, are you saying under certain circumstances it is possible (legal) for someone domiciled but nonresident in the uk to not pay UK tax on money earned from assets inside the uk? i.e. Property rental etc?
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LadyJessie
regular
Reged: 21/11/2006
Posts: 1150
Loc: the Med
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The short answer is yes, but the explanation is complicated and I think beyond the scope of this thread. Let me just respond to your example of rental income from a property you own; no that will in most circumstances be taxed in the UK as it is seen as a business. Now theoretically, if you could reconstruct that rental income to become capital asset income then that could in certain circumstances be tax-free. Very probably not worth your bother if you are maintaining your old house and this is your only income in the UK. I would rather look at what you can do with your pension fund(s) and other capital income, where they are and how they are paid. Much more scope for a substantial benefit to you if you could make them tax-free and rather inconsistently (for the taxman); that is actually easier to do than lose that tax on your house rental income.
Edited by LadyJessie (26/04/2008 19:11)
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whipper_snapper
regular
Reged: 09/08/2006
Posts: 1547
Loc: Kenya
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Quote:
I would rather look at what you can do with your pension fund(s) and other capital income, where they are and how they are paid. Much more scope for a substantial benefit to you if you could make them tax-free and rather inconsistently (for the taxman); that is actually easier to do than lose that tax on your house rental income.
Exactly. That is why it is important to get good advice very early in your planning process.
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KellysEye
regular
Reged: 23/07/2006
Posts: 759
Loc: Bonaire
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>Conachair. Now this is very interesting. Just to confirm, are you saying under certain circumstances it is possible (legal) for someone domiciled but nonresident in the uk to not pay UK tax on money earned from assets inside the uk? i.e. Property rental etc?
>Lady Jessie. The short answer is yes, but the explanation is complicated and I think beyond the scope of this thread.
LadyJesse, I believe you are raising people's hopes with no substantiation. Rather than waffle please would you explain how you can avoid UK tax if you are nonresident and earning money from property rental and (say) bank interest.
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LadyJessie
regular
Reged: 21/11/2006
Posts: 1150
Loc: the Med
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KellysEye: I am very sorry if it sounds like I am waffling. I am trying to reduce a very complicated subject to a few sentences without being misleading; I have clearly failed. I hope that I have not failed in my insistence of getting quality advice on this subject.
If you want some simple answers; let me try these: if your intention is to remain a UK resident long-term, and your only income is rental from a property: then assume that you will always pay UK income tax even if you are out cruising the world.
I was just suggesting that if you want to save some tax on your pension, then there are perfectly legal ways of doing that. It will involve some effort on your part to become non-resident; if you are not willing or able to do that, well at least you probed the issue and you are the wiser for it.
Unfortunately, if you are asking for a 'how-to guide'; I cannot give you that here because it depends on your personal circumstances. I am only trying to raise your awareness of possible financial benefits to you, I cannot tell you how or if you can achieve them. Only a good tax advisor that knows your circumstances can.
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