Friday, 01 August 2014
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HiFX - international money transfers

These weekly updates are for you. If there is anything different you would like to see, to help make this better to use, please contact us on 01753 752 740 or email portugal@hifx.co.uk.

Weekly Financial Update

The USD is the currency in focus at the moment. It has made a good recovery against both the Pound and the Euro. STG/USD traded from 1.71 all the way down to 1.69 by the end of the week. The EUR/USD also went to below 1.34 meaning the STG/EUR stayed fairly buoyant around 1.2550/1.26.

Proposed Tax Reforms In PortugalPortugal's Minister of State and Finance, Maria Luis Albuquerque, has presented a number of proposals to overhaul the country's personal income tax regime.

One of the main proposals is an increase to the exempt income tax threshold for households from €4,104 to €8,145, a measure which would affect about 20% of the population. The threshold would be adjusted based on the number of family members in a household, to ensure that the system is progressive.

Premier Fx currency exchangePeter Rexstrew, managing director of currency exchange specialists Premier FX, looks at how you can save money on your regular transactions.

"Even in improving times it is still good to look at ways of cutting down on living costs without it having too much of an effect on lifestyle. This applies especially to those who live on a fixed income, particularly one that is based on, say, a monthly pension, and involves them drawing euros out of a UK account to pay for their day-to-day living costs here in Portugal."

Should you move your UK pension?Affinity is pleased to present you with a simple guide on everything you need to know when considering moving your pension overseas. 

Our guide is free and easy to follow, it talks about the various benefits of a QROPS and the different jurisdictions that you can use. It offers a step by step guide on what you need to do and the questions you should ask your financial adviser.  

Tax Planning for a return to UK (Part 2)If you are a British expatriate planning to return to the UK, in order to lower your UK tax liabilities it is important to seek advice and start planning before you leave Portugal. In part one (click here to read) I discussed tax residence status, income tax and pensions, this week I look at capital gains tax, inheritance tax and life assurance policies.

besThe company which owns a quarter of Banco Espírito Santo (BES) slid a further 6% to an historic low after Moody's threatened to cut an already poor rating.

Pressure on the Espírito Santo Financial Group share price has intensified since April, when problems in the banking group started to become evident.

Tax Planning For A Return To UK (Part 1)When you move from one country to another, it is very important to plan ahead to ensure your income and assets will be structured as tax efficiently as possible. Leaving it until you arrive in your new country may be too late for some tax planning opportunities and you may pay more tax as a result. This applies whether you are moving from the UK (or elsewhere) to Portugal, as well as if you are moving back to the UK.

While right now you may have no plans to return to the UK, circumstances may change, sometimes unexpectedly. Many UK nationals do return at some point. Often the surviving spouse will return after the death of their partner. If and when you do decide to return, the most important tax tip I can give you is that you need to do careful planning in advance of your return.