If you are planning to move to the UK or a return after living abroad for a substantial period, it would be beneficial to optimise your financial affairs in advance of your arrival and consider how the changes in taxation between the different jurisdictions will personally affect you. As some changes may take time to implement, we generally suggest you should start reviewing your financial affairs at least a year before your move.
In October 2024, the Chancellor confirmed in the Autumn Budget that the government will abolish the tax rules for non-UK domiciled individuals, replacing them with a residence-based regime from 6 April 2025.
The new regime moves away from the concept of domicile to the more direct determination of residence to define an individual’s UK tax status. Part of the changes mean that new UK residents do not pay tax on foreign income and gains for four years. Following that period, they will pay the same tax on their foreign income and gains, regardless of their domicile status. The new rules will also significantly impact trusts and Inheritance planning, which will require a detailed review for both existing and future residents.
If moving, or returning, to the UK, organising your finances and assets to make use of the Foreign Income and Gains (FIG) regime can have significant benefits. Pre-planning before your arrival and mapping out how you will use your assets and cashflows once UK resident is essential to optimise the significant tax benefits.
Whether you are a new UK arrival or returning to the UK after a period overseas, a review of your financial assets and structures is advisable before they become subject to UK taxation. With the difference in taxation across the globe, it is not uncommon for something that is highly efficient in one jurisdiction to be less efficient or even costly in another. This can include investment assets, trusts or other structures.
At Partners Wealth Management, our experienced team of advisers will guide you through the process of assessing your finances, building a financial plan for your arrival in the UK, and optimising your financial activities for arrival and beyond. Please contact any of our International team for a no-obligation introductory meeting to discuss how we can help you with your international financial considerations.
If you are planning to move to the UK or a return after living abroad for a substantial period, it would be beneficial to optimise your financial affairs in advance of your arrival. Our guide considers some of the key considerations for individuals before they move to the UK and in their initial years as a UK resident.
From 6 April 2025 the new Foreign Income and Gains (FIG) Regime will be introduced, replacing the previous system based on domicile. Our guide outlines the new rules applicable to both existing and new UK residents.
The concept of residence will be a key consideration for any individual moving to or from the UK, as it has a fundamental impact on a person’s potential tax liability. Our guide considers some of the key questions we have been asked by clients in this area.
For further information on how we can help you build and protect your wealth, please contact us.
