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Returning to the UK: common tax mistakes and how to avoid them

The last few years have been nothing short of eventful, especially for British expats living overseas. For those considering a return to the UK, as well as the practicalities of an international move, there are a number of important tax and financial considerations to be aware of – ideally before a move becomes a reality.

Our recent webinar explained some of the complexities of the UK tax system, clarified why good planning is necessary before returning to the UK and detailed how to limit your exposure to UK tax and protect your wealth.

Returning to the UK: common tax mistakes and how to avoid them

Missed the webinar? Catch up here

Watch here

Ultimately your tax residence status determines how much tax you’ll pay in the UK, so if you’ve spent time overseas, and have achieved non-resident status, it’s important to preserve this advantageous position for as long as possible, rather than leaving yourself exposed to unnecessary tax. Timing is very important, especially when you need to factor in the practicalities of work, where to live and other issues such as school term dates if you have children. The date at which you become resident is crucial, and it can be useful to begin planning between 12 and 18 months ahead of any return.

Peter Webb, Head of Tax Advisory at The Fry Group, explored some of the trigger points that make you UK resident for tax purposes, common mistakes that can expose you to tax – even before you arrive home – and some of the key things to consider before leaving. He also touched on some tax-efficient investment strategies you can adopt once in the UK, and shared some real life experiences from expats who have returned home.

If you need to prepare for a return to the UK, either now or in the future, please contact your nearest office to discuss your plans.