Expat UK finance
Discussion
So I’m planning to go expat and live abroad from 5th April.
I am mid 30s, no family ties etc.
I have a mortgage, UK pensions, ISA, premium bonds and few other investments.
I am under the impression that, I cannot pay more into my UK pension and ISA, I would have to cancel my premium bonds and withdraw the money?
I’m planning to eventually sell my flat and buy a smaller flat for rental purposes that won’t make me a profit in the UK.
Is there anything I’m missing to cut ties with the UK.
Does anybody have any experience and advice they can give, thanks.
I am mid 30s, no family ties etc.
I have a mortgage, UK pensions, ISA, premium bonds and few other investments.
I am under the impression that, I cannot pay more into my UK pension and ISA, I would have to cancel my premium bonds and withdraw the money?
I’m planning to eventually sell my flat and buy a smaller flat for rental purposes that won’t make me a profit in the UK.
Is there anything I’m missing to cut ties with the UK.
Does anybody have any experience and advice they can give, thanks.
The way you are phrasing this suggests you are looking at establishing non-residency for tax purposes.
HMRC produce a useful flowchart for the basis on which you can establish this & is worth looking through. In some cases it’s straightforward in others less so. Straightforward cases are working full time outside of the UK & spending less than 90days a year in the UK.
Edited to add there are circumstances in which you can continue to contribute to a UK pension. I have had a lot of non-res years but continue to maintain pension contributions without an issue. In a similar vein its also worth considering if its worth making up missed NI contributions, the rate as an expat is generous based on current benefit levels.
HMRC produce a useful flowchart for the basis on which you can establish this & is worth looking through. In some cases it’s straightforward in others less so. Straightforward cases are working full time outside of the UK & spending less than 90days a year in the UK.
Edited to add there are circumstances in which you can continue to contribute to a UK pension. I have had a lot of non-res years but continue to maintain pension contributions without an issue. In a similar vein its also worth considering if its worth making up missed NI contributions, the rate as an expat is generous based on current benefit levels.
Edited by GT03ROB on Tuesday 5th March 20:47
I did this same time last year. I still have a property in the UK, I need to switch the mortgage deal in autumn and not sure how that's going to work out. I have a UK pension with Vanguard Investor and they don't allow non-residents to contribute, however, other providers may let you to so it's worth speaking with whoever you use. But a pension is a tax thing and if you're non-resident then doing something to avoid UK taxes doesn't make much sense? You could make the same investments using a service local to wherever you are, following whatever tax rules there are surely?
Unless the rules have changed, you can pay into a UK pension and get tax relief whether or not you have UK earnings for 5 years after leaving, though it is only on around 3.5k of contributions. The tax is refunded even if not paid.
Otherwise, continuing to feed tax efficient ISA accounts in the UK might not be useful if where you are moving to doesn't regard them as tax free and will tax you on the interest on them - it may be worth considering using the equivalent tax free options where you are going.
One major point before you leave is to consider if your bank in the UK will continue to operate accounts for people resident where you are moving to - a lot don't and it is well nigh impossible to open a UK bank account once resident abroad. A lot of people were caught out as a Brexit side effect was that UK banks ceased to have automatic permission to operate in each EU Country and had to apply on a per country basis, with some deciding that it wasn't worth it. I'm hanging on to a "spare" free current account on that basis as well as the one that I use when I'm in the UK.
Otherwise, continuing to feed tax efficient ISA accounts in the UK might not be useful if where you are moving to doesn't regard them as tax free and will tax you on the interest on them - it may be worth considering using the equivalent tax free options where you are going.
One major point before you leave is to consider if your bank in the UK will continue to operate accounts for people resident where you are moving to - a lot don't and it is well nigh impossible to open a UK bank account once resident abroad. A lot of people were caught out as a Brexit side effect was that UK banks ceased to have automatic permission to operate in each EU Country and had to apply on a per country basis, with some deciding that it wasn't worth it. I'm hanging on to a "spare" free current account on that basis as well as the one that I use when I'm in the UK.
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