Living or working abroad is an exciting time and offers plenty of scope for new adventures.
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. We’re keen to make sure you enjoy your life as an expat. This guide is here to help.
What you’ll learn in this guide:
- The importance of your residence status – which determines whether you pay UK tax or not
- Time overseas – after five years as a non-resident some aspects of your UK tax planning may be less onerous
- Why where you work matters – any UK workdays could incur UK tax
- Pensions and investments as an expat – 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
- Letting your UK property – if you hold onto your UK home there are some important tax rules to be aware of
- Inheritance Tax – living away from the UK still means you’re liable for Inheritance Tax so this is a vital step to plan for
- Retirement planning – 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