COVID 19 has prompted many expats to re-evaluate whether to continue living abroad. For those looking to return to the UK an unexpected move can be a challenging time with lots to consider. In these circumstances, personal finances can often find themselves low on the priority list. However any return to the UK – even if just one family member heads back – could create unexpected tax bills.
Our webinar explained how the UK tax system could impact your finances in this situation and highlighted some steps you can take to avoid paying more tax than you need to and shares some practical advice from those who have already returned. Our speaker was International Tax Manager, Peter Webb.
Peter covered the trigger points that make you UK resident for tax purposes along with common mistakes that can expose you to tax in the UK before you even arrive. He explained the key considerations you should bear in mind before leaving as well as some tax-efficient investment strategies you can adopt once in the UK.
The webinar also touched on the importance of understanding your residence and domicile status, and the impact of each of these classifications on your UK tax exposure. It explored how the Statutory Residence Test works and what pension planning you may need to bear in mind. Another key factor to consider when planning a return to the UK is how your employment status and your UK property can be interpreted by HM Revenue and Customs (the UK tax authority) with regards to your tax status. The presentation explored the tax implications faced by British expatriates from a UK Income Tax, Capital Gains Tax and Inheritance Tax perspective.