Expats returning to the UK face a number of challenges not too dissimilar from those wishing to exit.
Leaving one jurisdiction for another means considering the tax regimes of both the UK and the country where you are residing to ensure that you maintain tax efficiency and make a seamless financial return to the UK. Seeking help and guidance as early as possible will help achieve this
It is important to remember that the UK statutory residency test covers arrivers to the UK as well as leavers and it is important to understand when you will become liable for UK taxes again.
Returning Expats should consider the following:
Have you been non-resident and not ordinarily resident for at least five tax years? If so, capital gains can be realised before returning to the UK, free from UK tax.
Do you have investments that can be surrendered or restructured before returning to the UK to avoid any UK tax liability?
If you are employed, have you kept a record of social security contributions made in the overseas country? These may be transferable to the UK regime.
Have you established a new domicile overseas, for example as a result of retirement?
With our professional guidance and advice; you can avoid punitive tax implications and make use of tax-efficient opportunities in the UK to make your return to the UK as tax-efficient as possible. You might even benefit from tax advantages that are otherwise unavailable to UK residents.
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Talk to an Expat expert who can help guide you through the process of returning to the UK.