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Individuals moving to or from the UK

Woolford & Co. provides a comprehensive range of services to individuals as well as to the commercial sector. We not only assist individuals residing in the UK, but also expatriates who currently live in the UK and who may also be working in the UK.

Expatriate Personal Tax Planning

A number of individuals who are subject to taxation can benefit from professional support. It can optimise your tax position and ensure that all compliance requirements are met. To ensure you take full advantage of the tax saving opportunities open to you we can conduct a personal tax planning review. Furthermore, our tax specialists give ongoing tax advice on:

  • Income tax
  • Capital gains tax
  • Inheritance tax
  • Trusts and estates
  • Emigration
  • Non-domiciliary tax issues

Tax planning for non-UK domiciles is more complicated than for a UK born individual. As a non-UK domiciled individual, there are many additional tax saving advantages. This is a result of having access to the remittance basis of taxation.

Expatriate Self Assessment

Individuals and businesses that are resident in the UK in any tax year (which runs from 6 April to the following 5 April) are obliged to complete and submit a tax return. For individuals this must be filed no later than 31 January following the tax year in question. Taxpayers can incur penalties if they fail to complete their returns correctly or on time. 

Woolford & Co. can organise your tax affairs for you, saving a lot of worry, time and money:

  • Calculate all the necessary computations
  • Complete your return
  • Offer advice on how to minimise your tax liability
  • Act as your agent for any correspondence with HM Revenue & Customs
  • Arrange professional fee insurance cover

Expatriate Retirement Strategies

To help you maintain the same standard of living on reaching retirement you need to forward plan and consider the following:

1.      Exit strategies

  • Will you withdraw from the business or will you hope to sell the business?
  • If you intend to hand over the business, do you have a workable succession plan?
  • If you intend to sell, how will you value the business, find a suitable buyer etc?
  • Are you aware of the tax implications relating to the timing of disposals?

2.      Pension provision

  • Have you made adequate pension provision and do you have the right type of pension?
  • Are you aware of all the pension possibilities open to business owners/directors?
  • Are you making full use of all your allowances?
  • If you are retiring abroad have you considered QROPS?

3.      Savings and investments

  • Do you have the right balance between savings and investments and between high and low risk exposures?

4.      Life assurance and long-term care

  • Do you have adequate life assurance and have you made provision for long-term care and medical insurance for yourself and your spouse?

Retirement strategies for expatriates in the UK need to take into account the country in which the individual is likely to live once retired. Many expatriates stay in the UK after retirement, but others return to their country of birth or move to warmer climates. We work closely with tax experts in the relevant countries to ensure that the retirement strategies chosen are those that will be most effective for the future plans of the individual.

Expatriate Estate and Inheritance Tax Planning

It is impossible to know when we will die, so necessary provisions to ensure your chosen beneficiaries will inherit your estate need to be planned well in advance. Legislation also forces you to make the arrangements earlier, but in doing so you are able to take full advantage of the tax opportunities available.

Our tax experts work closely with lawyers to provide a discreet estate planning service that reflects our clients' wishes, whilst minimising their tax liabilities. This service can include:

  • Help with drawing up and reviewing your Will, making full use of exemptions and lower tax rates on lifetime transfers
  • Optimising lifetime transfers between spouses
  • Transferring agricultural or business property
  • Transferring assets into trust
  • Arranging adequate life assurance to provide for potential inheritance tax liabilities

Estate and inheritance tax planning for a non-UK domicile living in the UK is more complicated than for a UK domicile, but it also raises many more tax saving opportunities. Therefore, rules and regulations in the UK, the individual's country of domicile, any country in which assets are held and the countries in which potential beneficiaries live all need to be considered when giving advice. With associates worldwide, we are able to advise, propose and implement any agreed structures.

Expatriate Trusts and Executorships

Trusts can be a very tax efficient way to set aside assets for the future, outside of the inheritance tax net. We can offer the following trust advice and services:

  • Identify the most suitable type of trust
  • Provide a full range of accounting and tax services
  • Draw up documentation, with lawyers assistance
  • Review of the client's Will
  • Where appropriate, we can also act as trustees for executors

As an example, a trust could be established for an expatriate in the UK, the individual's country of domicile or another country that may tax income and capital gains within a trust at lower rates.

Leaving the UK

In a similar way to moving to the UK, leaving the UK is another opportunity for tax planning and mitigation.

Potential savings mainly relate to the tax liabilities in the future, and so payment would be made in the country the expatriate is moving to. Through careful tax planning and arranging a move in advance, it is often possible to reduce the future tax burden.

Contact: Laurence Binge