UK Autumn Statement 2012

From a Spanish perspective

There are many expats, especially pensioners and expat workers, in Spain who have a close vested interest in the UK Economy. There will be much more analysis over the coming days but I thought an outline summary would help.

If you would like a professional analysis from UK economists please email me and I’ll give you the link.

• Many pensioners in the UK & Spain with Income Drawdown or QROPS have their income determined by ‘GAD’ rates. These are increased from 100% to 120% from April 2013 which is the reverse of his previous policy. To review your individual circumstances please email me. The gentleman is for turning!

• Two measures will make QNUPS (Qualifying Non-UK Pension Schemes). Details http://ukoverseaspensions.blogspot.co.uk/2012/09/qnups-qualifying-non-uk-pension-schemes.html

Firstly, the ‘Lifetime Allowance’ which is the maximum that anyone can hold in a Pension Plan, is being reduced from £1.5 million to £1.25 million. This doesn’t affect huge numbers but when interest rates are so low its like reducing peoples pensions.

Secondly, the annual amount which any UK taxpayer can put in their pension scheme is reduced from £50,000 to £40,000.

If this might affect you or you want information, please email me

• Clamping down on tax avoidance and evasion which "I view as morally repugnant" as Mr Osborne put it. He ought to read my post! http://expatsfrombritain.blogspot.com.es/2011/04/tax-avoidance-and-tax-evasion.html  Like most politicians and journalists, he doesn’t help to clarify the difference

There are many other facets to the Autumn Statement and much of it is economic analysis but I wanted to publish the key details quickly. If any other factors come to light, later, I will produce an update. It could be worth putting this in your favourites and checking.

If you have any specific queries, please email me.

David Goodall

Financial Pages in Spain

Email: davidgoodall.spain@gmail.com