If you’re an expat living, working or retired overseas, your tax affairs are immediately far more complex than when you lived at home. By how much depends on where you live now and your exact financial circumstances, but talking to a professional for tax advice UK and offshore relevant is pretty much essential. With careful planning and the right investments, you could make a substantial difference to the amount of tax you and your estate are liable for now and into the future.
For individuals who move around or who hold assets across a range of financial jurisdictions, tax planning is not only more complex but can also be more rewarding. By investing in offshore vehicles, establishing trusts and foundations, and using international bank accounts, a good financial adviser can show you how to reduce your tax burden. However, you’ll need to find someone who has experience in dealing with expat finances and can help you with both your UK assets and your offshore assets. They’ll be able to give you tax advice, UK and overseas, on mitigating income tax, capital gains tax and inheritance tax specific to your own unique set of circumstances.
Whether or not you pay UK tax depends on whether you are domiciled or resident in the UK and where you hold your assets. If you are resident in the UK, you will be liable for UK income tax and capital gains tax. However, even if you live abroad, you may still count as domiciled in the UK, as this depends on where you were born, where your father was born and what assets you have in the country. To change your domiciliary status, you need to prove to HMRC that you no longer live here and that you have no intention of returning—which means severing all your ties with the UK, selling UK property and giving up your UK passport.
Changing domiciliary status isn’t always straightforward, but there are plenty of other measures you can take to reduce your UK tax burden, such as gifting money or assets and setting up trusts. For reliable tax advice, UK and overseas, you’ll want to talk to a firm such as Pryce Warner, who have more than 40 years’ experience handling the financial affairs of expats. Our services include:
For tax advice, UK and abroad, and for a full range of wealth management services, contact Pryce Warner.