Tax / News

An expat’s guide to UK tax

Living or working abroad is an exciting time and offers plenty of scope for new adventures. But it’s important to consider what ties you still have with the UK as an expat, particularly when it comes to UK tax. Peter Webb, our Head of Tax Advisory, offers some thoughts about what you may need to prepare for.

With over 400,000 Britons moving overseas each year and 5.5 million currently living abroad it’s clear that life as an expat continues to appeal. If you are a British expat, or planning a move overseas, one important aspect to consider is tax planning. Sadly, a common misconception is that moving or living overseas immediately moves you out of the UK tax net, but this isn’t always the case, and careful planning and preparation is needed.

Our new Guide takes a detailed look at some of the areas you may need to consider.

Download the guide

Click on the arrow to download our Expat Guide to UK Tax

Download the guide

In particular some of the key areas to bear in mind are:

  1. Your residence status – which determines whether you pay UK tax or not

  2. Time overseas – after five years as a non-resident some aspects of your UK tax planning may be less onerous

  3. Your working patterns – any UK work days could incur UK tax

  4. Pensions and investments – certain tax-free investments such as ISAs may not be an option but it’s generally possible to contribute to your UK pension, at least for up to five years

  5. Letting a UK property – if you hold onto your UK home there are some important tax rules to be aware of

  6. Inheritance Tax – living away from the UK still means you’re liable for Inheritance Tax so this is a vital step to plan for

  7. Your retirement plans – if you’re expecting to retire back to the UK it’s useful to plan ahead by 12-18 months to avoid any nasty surprises as you re-enter the UK tax system

Getting the right tax planning in place will allow you to focus on your time as an expat and enjoy all your overseas lifestyle has to offer.

To discuss your plans please contact your nearest office.