QROPS Advice: The Expatriate Financial Guide for UK Expatriates Retiring Overseas

An individual who is considering a move from the UK to retire overseas will need to take into account a number of factors, including the impact of their move upon their tax position.
One aspect is the taxation regime of the country to which the UK expatriate is moving. The tax regimes of countries around the world vary considerably. Generally, most countries will levy a tax on any income earned in the country. Others will tax the worldwide income or capital gains of an individual, in addition, perhaps, to raising an inheritance/estate tax on the worldwide wealth of an individual if they should die whilst living in the overseas country. The exact tax regime applied will depend upon the country in question, as well as the personal circumstances of the UK expatriate, for example what length of time they have lived in the country and/or whether they have purchased a permanent place of residence in the country. The Association of International Life Offices (“AILO”) tax guides provide an overview of the tax regime in a number of popular destinations for UK expatriates.
A UK expatriate’s continuing liability to UK taxes will depend upon their residence, ordinary residence and domicile status. An individual who is both resident and domiciled in the UK is liable to income and capital gains tax on their worldwide income and gains, as well as inheritance tax on worldwide assets (as a consequence of their UK domicile). For UK tax purposes residence and domicile are generally defined as follows.

full details on http://www.ailo.org/common/externalPage.asp?intURL=/publications/default.asp&extURL=/downloads/UK_Expat_Retired.pdf