Why tax planning is vital for expats

British people moving abroad could be losing large amounts of money due to poor financial planning and being unaware of tax considerations that could save them money or even lead to reimbursements from HMRC.

To ensure British people benefit financially as much as possible, information provider The Overseas Guides Company (OGC) recommends consulting a financial/ tax planning firm before making the move overseas. To highlight how important this is, OGC has listed its ten key considerations a financial advisor could advise on:

1 If you are leaving the UK but leaving behind a let property, there are UK tax implications to consider.

2 It is important to notify HMRC about a departure from the UK, not only as a formality but because it could result in a tax rebate.

3 There are UK state pension benefits to continuing National Insurance Contributions when you move abroad.

4 UK life assurance or savings policies should be reviewed well before leaving the UK, in order to determine their relevance to a new situation.

5 Non-residents of the UK can (normally) no longer contribute to ISAs.

6 Non-residents of the UK can only pay a limited amount for a limited period into an existing UK pension and get tax relief.

7 Advice should be taken about accumulated pension rights in the UK.

8 Be aware of large cash balances held in the UK - moving cash deposits offshore to free up UK tax allowances could be an option.

9 At the point of leaving the UK, individuals should be aware of their residence status and the implications of the forthcoming Statutory Residence Test.

10 British people may need to complete a UK tax return even after leaving the UK. Note, there are now significant penalties for late submission.

To help readers with their financial planning requirements The Overseas Guides Company (OGC) has partnered with financial advisory firm The Fry Group. The Fry Group, established in 1898, specialises in helping British expatriates with their tax and financial planning. Their service includes advice on investments, UK tax planning and mitigation, retirement planning, as well as wills, trusts and estate planning concerns. This new partnership comes at a time when OGC is receiving unprecedented enquiries for their guides for UK residents seeking to relocate overseas. The Fry Group’s experience in all matters relating to tax will further boost the information available from OGC.

Richard Way, Editor of OverseasGuidesCompany.com said: “Our partnership with The Fry Group is invaluable and will only strengthen OGC’s position as the UK’s leading information provider for Brits seeking to move overseas. There are so many things to consider when moving overseas, and financial planning is one thing nobody can afford to get wrong. This new partnership means we can help people avoid that.”

Aidan Bailey, Associate Director at The Fry Group commented: “You can only leave the UK once and, with such an important move, ensuring that your tax and financial affairs are handled in the most efficient and effective way should be paramount. At The Fry Group we help people extricate themselves from the UK tax system every day; what you might be doing once, we do hundreds of times a year. Ties to the UK tax system are manifold and difficult to break away from. For the unwary it can be expensive in unnecessary tax. With the advent of the Statutory Residence Test on the horizon, that makes planning all the more important."