TAX PLANNING

Repatriation services explained

If you’re intending to spend a specific period of time overseas, it’s easier to plan ahead and be ready for your return home. However, you might face an unexpected change in your work or personal life that causes you to return to the UK at short notice, without much time to plan. Regardless of your circumstances taking some time to plan ahead, and at least being aware of the considerations ahead of your return, can help keep your finances on track and avoid you paying unnecessary taxes. 

How do you repatriate to or from the UK?

Generally there a few financial checks which it can be useful to follow when you are repatriating to or from the UK. Take time to review your financial situation in the tax year before repatriating and check you’re up to date with your HMRC responsibilities. Consider your property options, bank accounts, life assurances, pensions and investments, and decide what actions you need to take, for personal and tax reasons. You’ll also need to understand when you’ll officially become UK resident or UK non-resident for tax purposes; it may be sooner than you think and can even happen before you even set foot in the UK. The Statutory Residence Test lays out the rules.

How does repatriation from the UK work?

If you’re leaving the UK, much of the same process will need to be carried out. You’ll need to consider what date you’ll be moving abroad, when you’ll stop being regarded as resident for UK tax, and what steps you’ll need to take if you need to move other financial elements out of the UK – pensions, cash deposits, investments and so on.

What paperwork is needed for repatriation to the UK?

If you’re not already a British citizen – with a UK passport – you may need to apply for a relevant visa before moving. Your home country will dictate the process you’ll need to follow. You may also need proof of identity and address to open a UK bank account and apply for a job, if you need to. It’s also vital that you contact the UK tax authorities – HMRC – to complete the relevant forms. You may need to complete a Self-Assessment form or start paying National Insurance again.

How long does the repatriation process take?

In an ideal world you should start planning for repatriation 12-18 months before you move so that you have time to make all the necessary arrangements and take advantage of any tax and financial planning which needs to be done. Of course in reality repatriation can happen much faster, but you might not enjoy as many advantages from a financial perspective, so it’s important to be prepared should your repatriation happen sooner than planned.

Repatriation services from The Fry Group

Seeking tax and financial planning advice ahead of your move will help ensure you are in the best possible position for repatriating to or from the UK, with the peace of mind of knowing your finances are in order. Working with a specialist financial adviser and expat tax advisers will help you plan well and steer through any tricky tax matters. The Fry Group has a network of global offices, and a team of expert advisers, who can help wherever you are in the world.

Would you like to find out more?

We are here to help with your tax planning requirements. For more information, whatever your circumstances, please contact us today.

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