Know before you go – your money matters

Heading abroad to work can involve a lot of upheaval for you and your family, but you can make the transition as painless as possible by sorting out as many of your financial affairs in advance as you can.

Before you go:

There will be some UK savings accounts you will not want to close, so ensure you arrange for these to be set up for gross interest and if you have a mortgage here, remember to notify your lender that you will be out of the country.

In terms of banking it is simpler to set up an offshore bank account while you are in the UK, as it is much easier to get copies of passports and recent utility bills while you are still resident here. All banks now require this “know your customer" detail, so it is wise to get it done as soon as possible. Set up an offshore bank account to help you manage your money and check whether it has a comprehensive internet banking facility – you may need to be operating across time zones and when UK call centres and offices are closed. A good account will also pay a reasonable rate of interest and have a team of skilled staff who are trained to understand the needs of expatriates. Remember to check out the tax laws in the country you are moving to and notify the Inland Revenue in the UK of your date of departure.

Another good idea is to make a will in the UK, and check whether you need to make another one when you arrive at your destination.

When you arrive:

As soon as you can, register with your consulate in your new country and register with the local tax authorities.

You may need a financial adviser and a UK bank with expertise in this area could be the best option. Be aware that in some countries local advisers are neither independent nor regulated to UK standards, so will not declare hidden fees and costs. Since you are likely to move back to the UK or to another country, advice from a local firm may not be best for your future lifestyle or UK tax position.

Think about whether you would like a financial adviser to offer comprehensive advice or just to buy investment products you yourself have researched, which is known as an execution only service. Detailed advice starts with the adviser taking a thorough look at your overall finances. It is useful for people with complicated financial affairs, those who are likely to live and work in more than one country or people who don’t have the time to research and make investment decisions.

The adviser will give you details of their services in a “Key Facts” document which explains whether they're offering you advice or just information, and whose investment products they offer. They will also tell you about the costs involved and how you will pay for the firm's service, either through commission or a fee.

The next step is a “fact find” which is a financial questionnaire to establish your financial goals, current situation and attitude to risk. You will receive written recommendations included in a “Reasons Why” letter, explaining how the products fit your financial circumstances, plus an annual review of your investments.

Returning to the UK

When you are planning your return, make sure you seek tax advice, including establishing any liabilities for capital gains tax, and use the services of an adviser to find out the most tax-efficient way of transferring assets home.

Be in mind that coming home in the middle of a tax year may mean extra administration and find out what the implications are for your pension, savings and any insurances that you have.

As the specialist offshore subsidiary of HBOS Plc, the UK’s third largest banking group, Bank of Scotland International is able to offer advice and services to expatriates along with a range of competitive products covering savings accounts, mortgages, financial advice and long term investments. Bank of Scotland International has a team of private client managers who can help customers to put longer term financial plans in place. Their commitment to personal service makes them ideally placed to look after individual client requirements at every level including detailed and specific investment management.

Tony Wilcox, Managing Director at Bank of Scotland International, says: "When people are posted abroad they tend to be preoccupied with the task of finding somewhere to live and adjusting to a new culture. Financial issues are often neglected, but by setting up an account with Bank of Scotland International you can be sure that you will have the advice and support you need before you go."