Expats returning to the UK after living abroad face a major life change, particularly when returning from a low tax or tax-free jurisdiction. In many cases, moving to the Middle East is easier than returning to the UK, hard as that may be to believe if you can remember your early days here! Once you’ve made the decision to go back, there’s a great deal to think about, plan and be prepared for.
Below is a checklist of items to be considered before repatriating to the UK to give you some insight into the practical, tax and financial matters of a relocation back to Britain. You can download a more in-depth guide here:
- Retiring back to Britain: (SIPP, QROPS, HMRC reporting, tax on income from your pension)
- Repatriating money: tax rates for expats, temporary non-residents, UK non-domiciled individuals
- Foreign exchange: exchange houses vs. banks, exchange rates, hedging
- Income tax: tax liability for expats, tax bands, personal allowance, HMRC Starter Checklist, self-assessment and tax returns
- National Insurance Contributions: voluntary contributions, contribution gaps, state pension
- Disposal of assets: time frames for liability for capital gains tax
- Inheritance tax: assets of deceased expats / UK domiciled individuals, IHT threshold (or nil rate band NRB), IHT exempt gifting, annual exemptions, transfers between UK domiciled spouses and civil partners, unused portions of exemptions
- Renting property: credit checks & reference requirements, tenancy laws, deposits & advance payment, pets
- Buying property: conveyancing, anti-money laundering compliance / proof of funds, deposits, mortgages & lenders, credit score vs. credit check, measures to reduce hurdles
- Council tax, electoral register
- Insurance: home insurance, life insurance, boiler breakdown insurance, health insurance, car insurance, and the like.
- Importing personal effects: ways to ship, use of an international freight forwarder, non-permissible items, customs clearance, import paperwork, importing vehicles, VAT
- Importing pets: documentation, quarantine, treatment / wellbeing, accepting airports
- Accessing the NHS: initial emergency care, registering with a GP surgery, residency based access, NHS Choices, interim prescriptions, collecting S1 (EEAA countries) or international records, finding a dentist, Denplan (private dental insurance)
Many returning expats experience a reverse culture shock. Proper and comprehensive financial planning can alleviate anxiety and ease your re-settlement, as well as simplify your tax situation – as much as is possible! Although HMRC has detailed guidance associated with the various items above, there are dozens of guides to go through. Planning for repatriation is best done as far in advance as possible and with an experienced financial advisor. We’re here to help you ensure you make the most of any advantages you have before repatriating. Please get in touch and we can arrange an initial review of your circumstances.
Author: Alan Herbert – Wealth Manager
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