We know how daunting it can be leaving the U.K. to move abroad. This checklist will help you make the transition easier and less stressful.
Our moving abroad checklist was created for those who are thinking of leaving the UK. It covers everything you need to do in advance and important things to remember once you have moved.
Here’s a quick checklist to help you prepare for your move abroad.
“At a glance” checklist
To elaborate on these points below, I have separated them into two topics…. financial planning and non-financial planning.
First, notify tax authorities (i.e. HMRC) in the UK of your intention to leave. You may be required to pay additional taxes if you do not notify the appropriate authorities.
Fill out the P85 form available from Revenue and Customs and return it.
This notifies tax authorities about your departure and helps to ensure that you’re taxed in the appropriate jurisdiction.
Form SA105 should be filled out if you have rental income from UK property.
There are a few other forms to consider depending on your collection of assets in the UK. It would be advisable to speak with an experienced accountant specialising in expatriation.
Even if your residence is outside the UK, it may still be subject to tax on your income or gains from assets disposals. So you may still need to file a tax return.
If you are keeping any UK property, it’s important to understand that any future sales may still incur Capital Gains Tax. If you’re thinking of moving, you might want to reconsider your options. However, you should be aware of Capital Gains Tax rule changes.
Each country has its own tax rules. Some are specific to expats. Non-compliance with local tax rules can result in significant penalties or imprisonment. So it’s not worth taking the risk.
Get advice from a local financial advisor who can understand your needs and help you avoid falling foul of local laws.
Currency fluctuations and transaction charges can lead to you paying unnecessary amounts if you make or spend money. This can be avoided by opening an international bank account that is specifically designed for money movement.
It is also sensible to open a local account to help with your day-to-day banking.
We are often asked whether it is a good idea to close your UK bank accounts. It all depends on your situation. It is best to keep your account open if you are involved in ongoing transactions in the UK, such as direct debits or income from rental. You should also consider that you will need a bank account if you intend to return to the UK in the future. It may be wise to keep your current account open instead of opening a new one.
An Expat Bank account may also be available. These accounts are specifically designed for expats and allow you to keep money in multiple currencies. These accounts are not usually located in the UK, but they can be opened in any country. This could give you more flexibility to meet your expat needs.
Your pension will be a crucial factor in your retirement abroad. There are many things to know about Expat Pensions, which we’ve extensively detailed on this site.
If you have any pensions other than your State Pension, it is a good idea to request a Pension Health Check. This is necessary if you are going abroad for a long time or permanently, and you may not be able to return to the UK until you can become eligible for your pension. You may be eligible for unique options as an Expat, depending on your plans.
An adviser can help you explore each option and assist you in making a decision.
For tax purposes, ISAs (Individual Savings accounts) require that you have a permanent UK residence address. You may not be able to continue paying into your ISA while you are abroad if you have one. There are a few things to consider, such as whether or not you wish to keep your ISA abroad, whether or not you will be making payments, and whether you plan to return to the UK in the near future.
Professional advice is important if you’re serious about moving abroad to ensure that you get the best possible return on your investment now and in the long term.
It is crucial to plan your estate and how it will be handled when you pass away if you’re thinking of retiring abroad. Different laws apply to estate and tax planning. Generally, write a will in any country that you have assets. In the middle east, if you have children, it’s essential to have a guardianship letter.
Then seek advice from a financial adviser who will be able to advise you on how to manage your estate to ensure you minimise the various tax liabilities, including UK Inheritance Tax.
There are many things to consider if you plan to rent your UK home to expats.
First, you choose how you want to manage the property. This includes how you will replace tenants, collect rent, and manage any improvements or repairs. For a fee between 10% and 15%, you can find a UK letting agent who will manage all aspects of the property management.
There are also tax considerations that you need to consider. You have first to inform HMRC about your intentions. If you are eligible for the Non-Resident Landlord Scheme, which may offer significant tax benefits, You will need to determine your expected income from rent if you are not a resident of the UK. This could make you liable for UK income tax.
Find suitable expat landlord insurance that will cover you and your property for every eventuality, including contents, damage as well as any legal fees. Remember that if you have mortgaged your home, you must inform your mortgage provider so that they can ensure you don’t violate the terms of your loan or risk repossession.
Find out about your eligibility for short-term medical care in your destination country and your social security benefits. Your eligibility for European medical care should be the same as it is for local residents.
You will have less protection if you travel further afield. However, Britain has special agreements with many countries.
It is worth checking to make sure that the country you are going to reside in is included. In addition, you may need to arrange for your health insurance. NHS Choices is an excellent resource for anyone looking for medical advice in the UK and abroad.
You might want to apply for a European Health Insurance Card (EHIC) if you’re moving to another part of Europe.
In 2006, the E111 was replaced by the EHIC. The EHIC should help you save money on your health care (or even free in some cases). The EHIC is valid throughout the EC, including Switzerland. It can be applied for via the NHS.
This is only intended to cover short-term stays. If you plan to live in a country long-term, integrating with the local social insurance system, if there is one or private health insurance could be much better. You should also consider returning your British EHIC card to get one from your new country if it is in Europe.
Moving abroad is a difficult task for pet owners. It’s best to start planning as soon as possible to relocate your pet. After you have determined your destination and confirmed it, your veterinarian will microchip your pet. Next, you’ll need to get your pet immunised against rabies at least 21 days before you travel.
A professional animal transport company can also help you with the logistics of moving your pet. You must also consider transportation itself, including food and water, as well as any creature comforts that your pet might require.
You should be familiar with your country’s driving regulations and laws if you plan to drive there. You must ensure you drive on the right side, and you should also be familiar with the requirements for your driving license.
You will need an International Driving Permit if you plan to travel outside of Europe. This can be obtained from the Post Office. International Driving Permit is an international permit that allows you to drive a car or another motor vehicle. It must be accompanied by a valid UK driving license.
Before you travel, it is essential to check with the country where you are going. You may also need to apply for a driving license.
See below some other important factors that people tend to forget. Although this list is not meant to be exhaustive, it may help you to think about something you didn’t know. It is important to consider many things when planning to travel to work or live abroad.
You will also need to manage a few administrative items. It is important not to miss important mail, so it is essential to arrange a mail redirection with the Post Office as soon you know your location. The cost to arrange this is high, but the Post Office can redirect your mail for as long as twelve months.
Do not forget to turn off the gas!
Notify your utility companies that you are moving. You should inform your insurance company if you intend to keep your British home and rent it out, as your existing insurance policy may not cover the rental of your home. You should inform your mortgage provider if you are still paying a mortgage on this property.
Inform the local authority that you are leaving, and provide your new address to them to send your Council Tax bill.
You, as an expat, have a significant role in the UK’s voting system. The UK government will still have an impact on you through taxation, immigration policies and foreign affairs. This is especially true if you have assets in the UK. Find out about expat voting and how to vote in the UK when you live abroad.
Summary
Hopefully, this gave you some things to think about you may have missed. Obviously, many of the areas covered are for you to do, but anything financial can be helped with the assistance of a good financial planner.
