Moving abroad is a dream of many, perhaps for sunnier climes or a more laid back lifestyle? But the financial complexities involved can put people off. It needn't be onerous and proper planning can help realise the challenges of any new adventure!
Notifying HMRC of your impending move is a must. If you don't, you may have to pay additional taxes which, as an expat, you would be exempt from. Many countries have signed up to a 'Double Taxation Treaty' to help prevent this expensive problem. HMRC should direct you to Form P85 which is required to notify them of your move, to help ensure that you will be taxed appropriately in a foreign jurisdiction.
If you will continue to receive interest income from savings in theUK, but will also be paying tax abroad, ensure you also complete Form R105, before sending it to the financial institutions where your savings are held. Normally, tax is deducted from your interest income before you receive it. This form requests that tax not be applied in future because your income will be taxed in your new country instead. If you don't do this, you may find that this part of your income is taxed twice.
If you are keeping property in the UK, it's important to understand that any future sales as an expat may still incur Capital Gains Tax as the rules for expats are about to change. You may wish to reconsider your options if you are about to move, but before you do, ensure you know about Capital Gains Tax rule changes. If you do not have an accountant that you can ask about this, please do let us know. We work closely with a number of very competent professionals that we can provide details of.
In theUK, we benefit from one of the best healthcare systems in the world. Whilst medical care is widely available internationally, it may come at a financial cost to you personally. Each country will have their own social security system, and inEuropeyour eligibility for medical care should be the same as that of local citizens. (Remember to get your European Health Insurance card for short term stays before you leave).
However, further afield, althoughBritaindoes have special agreements in place with a number of countries, you may not qualify for these for a period of time.
To ensure you are covered, you may wish to take private medical care cover. There are many (UKbased) schemes that offer international cover and so enquiries and cover can be arranged before you travel. These may or may not also include GP and dental cover which should also remind you to notify yourUKproviders that you are leaving the country.
In order to avoid currency fluctuations and transaction fees, you may wish to consider opening an international bank account in addition to a local bank account for your day to day banking. This does not mean that you need to close your UK bank accounts and it may be wise to keep these, especially if you have payments taken or are receiving income perhaps from rent. It may also smooth your transition if you should later wish to return to theUK.
Expat Bank accounts are also available that allow you to hold money in multiple currencies.
Depending on your circumstances, your pension might be one of the most important considerations to you when moving abroad, especially if you are planning to retire.
If you have pensions other than your State Pension, you should request a Pension Health Check if you're going abroad long term, and may not return to theUKbefore you become eligible for your pension. As an Expat, depending on your plans, you may have unique opportunities available to you, especially if you wish to continue funding for retirement.
Other savings plans such as Individual Savings Accounts (ISAs) (including NISAs) can remain invested, but you will no longer be able to save into it.
If you are considering retiring abroad, it is important that you plan estate matters and what happens to it when you die. Different countries have different rules when it comes to tax and estate planning. The first step is to create a Will. As Independent Financial Advisers, we can help you manage your estate to ensure you minimise the various tax liabilities, including UK Inheritance Tax.
So, from a financial point of view, to ensure you are totally confident about your impending new life abroad, we would simply suggest that you utilise the expert advice available to you from the advisers at Nurture Financial Planning.
Here are some useful links if you want to find out more:
Form P85 https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/PersonalTax_iForms/1.0/P85&template=P85.xdp
Form R105 https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/PersonalTax_iForms/1.0/R105&template=R105.xdp
Websites provided by the Government are actually pretty easy to navigate and should, in theory, be accurate. Be aware of other websites that want to charge for information and always check here first.