Tax rates may attract Brits overseas

Lower rates of income tax may encourage Brits to start making overseas money transfers in order to fund their moves abroad, according to industry experts.

Chiara Cavaglieri, finance commentator, wrote in the Independent that Canada, the US and Australia are likely to appear attractive to potential expats wanting to pay less tax.

Figures from the paper reveal that Australians begin paying 45 per cent on their earnings if their income is higher than £88,681 ($180,000).

US workers pay 35 per cent tax if their earnings exceed £238,395 ($372,950), while Canadian residents are charged a rate of 29 per cent if their employment brings in more than £70,772 ($126,264) a year.

Despite the positive impact transferring money overseas may have, Ms Cavaglieri warned Britons to put the necessary measures in place before relocating abroad.

"Arranging a mortgage, applying for visas, obligatory medical costs and flights will cost thousands of pounds, so in-depth research is vital if you're planning a big move," she said.

Meanwhile, an Arabian Business poll recently revealed that Brits are among some of the highest-earning expats in the Gulf.

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By John Mills.