Five steps to planning a tax-efficient return to the UK
26 Jul 17
International tax and wealth management firm Blevins Franks has identified five key planning issues for UK citizens wanting to avoid punitive tax implications when making their move from Europe back to Britain. Click on the slides below to see them.
Different jurisdictions have different fiscal systems and require country-specific financial arrangements.
This means that once an expat moves back to the UK, assets and financial structures that worked favourably for them in their previous country of residence may not be so beneficial.
On the other hand, they could find more tax-efficient opportunities in the UK once they become a British resident again.
“As well as the tax implications for any income, such as your pension, your residency will influence your tax liabilities when buying, selling or moving any financial interests,” Blevins Franks observed.
“Before buying a new UK home, for example, make sure you understand how tax rules locally and in the UK might restrict or eliminate the availability of main home reliefs. Capital gains tax is also important – it may be more beneficial to sell or buy when resident of one country over the other,” it advised.
Depending on their situation, expats might find it beneficial to either bring forward or delay selling or transferring any assets according to where they are resident for tax purposes.
“In particular, careful planning of the date of sale of your overseas home is crucial.”
Tags: Brexit | Estate Planning | Qrops | Residency
