SJP Relocation considerations
Returning home to the UK after a period overseas can be a stressful process that requires careful consideration and planning.
Ensuring that your affairs are in order and that your finances and investments are administered efficiently is of paramount importance. Surrendering investments at the wrong time, or arranging them in an inappropriate manner, can lead to significant and unexpected tax consequences in the UK.
Ideally, you should seek professional UK financial advice at least 12 months prior to your return.
Here are 8 essential things you should consider when planning your return to the UK.
Depending on your domicile and residency status, you may be subject to tax such as income tax, Inheritance Tax (IHT) and Capital Gains Tax (CGT) on your UK and worldwide income and assets.
It may be beneficial to sell your overseas properties before returning to the UK, otherwise you may be liable to pay CGT on your overseas property when you come to sell them while UK resident.
Should you retain or sell your offshore investments to mitigate taxation, and what UK tax reliefs will be applicable to your investments when you return to the UK? Will your offshore insurance plans remain suitable when you are back in the UK?
Are there gaps in your National Insurance record which could impact your State Pension when you retire? If you have a UK pension scheme prior to leaving UK, how can you boost your pensions savings now that you are back in the UK?
The Banking landscape in the UK has transformed over the last few year and there is no longer a need to open multiple bank accounts to achieve the best interest rates. Furthermore, following the decline in the value of Sterling after Brexit, consider speaking to a foreign exchange provider about the best possible strategy for converting your hard-earned overseas cash and investments.
If you haven’t had any bills to pay in the UK, you could face difficulty applying for financing because of your poor credit rating unless you speak to a specialist lender who recognises your position as a returning expatriate. It will also be a great opportunity for you to review your home loan, interest rate and mortgage provider.
Speaking to a chartered accountant can provide you clarity and solutions to simple or complex queries regarding your return to the UK, such as your domicile status, CGT position on the disposal of a UK property and split year treatment.
As you prepare to leave your current country of residence it is important to remember to close bank accounts, credit cards, work permits, visas etc that will no longer be required. However, it may be prudent to retain the ability to make and receive payments locally even after you have returned to the UK in case of unforeseen bills that require payment or refunds/deposits which are owed to you.
We appreciate that your planned return home represents a significant change and we believe we can aid this transition by offering you our distinctive Repatriation Service.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Advice relating to a mortgage involves the referral to a service that is separate and distinct to those offered by St. James’s Place.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. You are advised to seek independent tax advice from suitably qualified professionals before making any decision as to the tax implications of any investment.