Financial and tax considerations if moving back to the UK
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Financial and tax considerations if moving back to the UK
I know there will sadly be some unplanned moves back to the UK. I did this a couple of years ago, so wanted to share some learnings regarding my experience with tax and financial planning.
Once back in the UK it was possible to do a split year tax return, i.e. for the spent time as an expat and then for when I became resident again in the UK. It was not expensive (a few hundred £) and basically meant there was no tax exposure on historic expat earnings up to the point I became resident again in the UK.
Regarding investment and financial advice, this was better done once resident in the UK, as it could be tailored to the UK tax regime and the onshore lifestyle. My view is to carefully consider whether to take out any new policies or financial products before moving back to the UK, given the charges, tax exposure and product inflexibility can be significant.
Overseas, financial advisors generally work on upfront commission, which can mean you end up with an expensive and inflexible product (given the commission was paid upfront). This is not legal in the UK and advisors will generally charge a percentage of your portfolio. They also have to provide an annual statement of fees. This means there is much more transparency and you are generally not locked into advisors or products.
Please don't take this as any sort of professional financial/tax advice, as I am not qualified in any way and regulations change, but please do your homework carefully before making any commitments.
One positive is that the AED/US$ to GBP exchange rate is in your favour!
Take care and good luck.
Once back in the UK it was possible to do a split year tax return, i.e. for the spent time as an expat and then for when I became resident again in the UK. It was not expensive (a few hundred £) and basically meant there was no tax exposure on historic expat earnings up to the point I became resident again in the UK.
Regarding investment and financial advice, this was better done once resident in the UK, as it could be tailored to the UK tax regime and the onshore lifestyle. My view is to carefully consider whether to take out any new policies or financial products before moving back to the UK, given the charges, tax exposure and product inflexibility can be significant.
Overseas, financial advisors generally work on upfront commission, which can mean you end up with an expensive and inflexible product (given the commission was paid upfront). This is not legal in the UK and advisors will generally charge a percentage of your portfolio. They also have to provide an annual statement of fees. This means there is much more transparency and you are generally not locked into advisors or products.
Please don't take this as any sort of professional financial/tax advice, as I am not qualified in any way and regulations change, but please do your homework carefully before making any commitments.
One positive is that the AED/US$ to GBP exchange rate is in your favour!
Take care and good luck.
