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A quick simple question about wills

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A quick simple question about wills

Postby euphony » Mon 6 Jul 2015 16:39 GMT

Hi all,

I've searched the forum for the answer to this, but as usual (for me!) I've been going round in circles.
My wife and me have no children and have UK wills. Our income and savings are staying in the UK and we're transferring over what we need when we need it. So my question is that if anything happens to either of us, are our UK wills all we need? Or would we need a Maltese will each too? (Bearing in mind that we're only planning to rent in Gozo).
Also, on a quick side note, I'm aware of the double tax treaty between UK and Malta, and we're planning to continue to pay our tax at the UK side. As far as I know we need to let the Maltese authorities know this, so is there any specific form we'd need to fill out to confirm this?
Many thanks in advance :)

Chris
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Re: A quick simple question about wills

Postby gozomark » Tue 7 Jul 2015 09:59 GMT

you need Maltese wills to cover your assets in Malta - this can be a codicil, which is a supplement to a will, so your UK will is your main one, the codicil covers stuff in Malta

tax - if you live in Malta for more than half the calendar year you have to fill in a Maltese tax return. On that you put the tax already paid in the UK on the income you are declaring, and offset it against the tax due in Malta.
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Re: A quick simple question about wills

Postby euphony » Tue 7 Jul 2015 11:44 GMT

Many thanks Mark, that's very helpful.

The tax we'll pay will be minimal in the UK anyway, if any. It just depends upon the return on our investments and whether they go up or down, and as we jointly own everything, it all needs to be split in to 2 separate returns, one for me and one for Alison, which helps in terms of tax.
I'll look into the Maltese tax element and see what it looks like when offset, as it all gives me a good idea of what to do.
I assume I need evidence of the tax paid in the UK? or does just simply stating it on the form suffice?
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Re: A quick simple question about wills

Postby gozomark » Tue 7 Jul 2015 11:58 GMT

tax returns in the UK and Malta are self assessment - you dont provide proof unless requested to do so. Bear in mind, as things stand, you will have tax free allowances in both UK and Malta :-)
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Re: A quick simple question about wills

Postby euphony » Tue 7 Jul 2015 12:01 GMT

Excellent :)
I've just double checked the income we expect to get in the UK from investments, rent and pension and as the investments and rent are joint income we'd be below the tax threshold each. Once I get my pension though that pushes it up a bit, but I won't worry about that yet!
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Re: A quick simple question about wills

Postby euphony » Tue 7 Jul 2015 12:05 GMT

So individually we can earn 8500 euros a year (equivalent in £) each and not be taxed in Malta? Is that correct?
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Re: A quick simple question about wills

Postby gozomark » Wed 8 Jul 2015 06:42 GMT

it depends if you are allowed to be taxed as individuals, or as a married couple - if your income is unearned, I think you have to do a joint declaration if married so the allowance of about 12000 euros

ps you are only taxed on income you bring into Malta (or earn in Malta). No tax on capital or capital gains brought into Malta.
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Re: A quick simple question about wills

Postby euphony » Wed 8 Jul 2015 11:10 GMT

Ok, that might scupper things a tad. I'll look into it, thanks Mark :)
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Re: A quick simple question about wills

Postby gozomark » Wed 8 Jul 2015 11:23 GMT

rememeber you only pay tax in Malta on income you bring into Malta (or earn in Malta), so you dont have to declare all your income here unless you bring it all in. Try and bring in a mix of capital/capital gains, and income
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Re: A quick simple question about wills

Postby FOXGLOVE » Wed 8 Jul 2015 13:07 GMT

gozomark wrote:it depends if you are allowed to be taxed as individuals, or as a married couple - if your income is unearned, I think you have to do a joint declaration if married so the allowance of about 12000 euros

ps you are only taxed on income you bring into Malta (or earn in Malta). No tax on capital or capital gains brought into Malta.


Our income in Malta is all derived from UK pensions and having read the booklet that comes with the Maltese tax return I believe you have the option do which ever is most favorable for you. I declared our income as being sourced like this last year and it was accepted. I have done the same this year and will see what happens.


Ray
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Re: A quick simple question about wills

Postby gozomark » Wed 8 Jul 2015 13:37 GMT

In fact UK pensions are not taxable in Malta as long as tax already paid in UK at source (its an exemption in the double taxation treaty)

as for doing single tax returns, yes, you are probably right, there was something about my situation that meant had to do joint when we moved here 13 years ago, but for the life of me cant remember, and we only ever bring in income just over the joint limit anyway, anything else is capital, so it doesnt matter anyway

I'm starting a thread in the private boards, see you over there :-)
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Re: A quick simple question about wills

Postby gozomark » Wed 8 Jul 2015 13:43 GMT

link to private board discussion

viewtopic.php?f=835&t=25991
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