I read this week about a very successful leading UK company that may well be acquired by a private equity firm. I actually met the owners of this company in Monaco some years ago, and it was such a coincidence that their daughter was at Nottingham University at the time as was my daughter. Both daughters were studying economics. Incredibly, our daughters also were called Harriet. One year difference between them.
However, I was amused to hear that this happily married couple, having just moved to Monaco with their fortune, said to each other, ‘What shall we do? We could try playing golf or perhaps tennis?’ I could see danger ahead. They moved to Monaco to save Capital Gains Tax. They returned to England two years later and paid the tax which they had moved to Monaco to avoid.
I also met another gentleman who was recovering from a heart attack. He was very wealthy indeed with large estates in Scotland where his family remained. He told me he had chosen to stay in this small apartment in Monaco one more year just to save tax. Crazy? I think so. Don’t you agree?
I also recall meeting a large number of people in Monaco who attended a weekly luncheon club every Tuesday. There were many well-known wealthy people who attended this weekly lunch, but I felt many would prefer to be back in the UK.
I sold a company at the end of last year, and even though I hope I applied common sense to my financial decisions, I spent a lot of money obtaining specialist advice on living in other countries mainly in Europe. There are a number choices with Portugal being one of the most popular in view of the Golden visa offering massive tax savings for up to ten years.
I was tempted, but fortunately, I eventually returned to my senses. I asked myself the question, ‘Where do I want to live?’ The answer was England. On reflection, I have happily made the right decision, and I will use Government approved arrangements to reduce my Capital Gains Tax. We must never let tax savings drive common sense decisions.
Trevor Downing FPMI FPFS
