Tax - a determining factor when re-locating.

The Telegraph (UK)

Snippets from Article in the Telegraph  ‘Budget 2012: will George Osborne's 'Granny tax' cause an expat exodus?’ 27th March 2012

"Mr Osborne announced in last week's Budget that the age-related allowance for people turning 65 is to be scrapped from April 2013, meaning that there are now even fewer incentives to hold pensions in the UK."

"Financial legislation in Malta has made it increasingly attractive for high earners. The introduction of the Highly Qualified Individual Rules last year meant that a number of individuals came to live in Malta and pay a flat rate of 15% tax on their income for a five year period"

"Later in the year, Malta introduced another set of rules attracting High Net Worth Individuals who also pay a flat rate of 15% tax with a minimum liability of €20,000 per annum," said John A. Huber, a tax specialist based on the island. "Discussions are ongoing with the government and it is hoped that more schemes that may be even more specific.

"Tax can be a determining factor when re-locating. Malta has a very favourable tax regime and also offers a great environment to live in."

UK campaigners warn that there will be a growing backlash over the Budget in Britain as the new tax allowances are introduced. "The decision to freeze the age related personal tax allowances effectively means around five million pensioner tax payers will no longer get additional reductions in their tax over the coming years – whilst those on the top rate of tax will see their bills reduced," said Dot Gibson, general secretary of the National Pensioners Convention. "Many older people will feel they are being asked to forego their reduction
in tax to help out the super rich. There’s no fairness in that."

But the Government dismissed a growing backlash over its Budget, insisting the tax reforms were "fair". In a Lords debate on Chancellor George Osborne's measures to scrap age-related allowances introduced by Winston Churchill in 1925, Treasury minister Lord Sassoon acknowledged "tough choices" had been made but said reform was essential to restore economic stability.

"This Government will not shirk its responsibility to restore fiscal sustainability and economic stability," he said. "We have learnt to all our costs the consequences of unsustainable spending and ever increasing debt."