Pensions and property were in the spotlight at the Government’s Autumn Statement in November, a reminder that estate planning should be a priority if you’re planning to retire abroad. Here are five key tips to come off the back of the Budget

Be sure of your pension entitlements. The recent and on-going changes to the pension system make it worth double-checking your own situation. You’ll need to budget carefully as an expat and will be exposed to exchange rates once abroad, so keeping a track of every penny is important. Two bits of good news from the Chancellor are confirmation that from April 2016 existing pensioners will see their weekly payment rise by 2.9 per cent to £119.30 in line with average earnings, while the same month sees the launch of the new ‘flat-rate’ pension, set at £151 a week. However, Mr Osborne did announce this week that pension credit payments, a type of means-tested top-up for pensioners, will be stopped for anyone who leaves the country for more than a month, compared to the current cut-off of 13 weeks (the rule is different for those travelling abroad for medical treatment under the NHS). And don’t forget, as from April 2016, the number of years you will need to have worked and made national insurance contributions in order to receive the full State pension will rise to 35 from 30 years – could this also affect your relocating plans?

Plan your UK buy-to-let carefully. Keeping a buy-to-let in the UK is a popular way to earn extra income as an expat, and at the same time keep a Sterling based foothold in the UK. However, planned changes by the Government are making a buy-to-let a less attractive option for investing, so do your sums before committing and leaving the country. In particular, Chancellor Osborne announced a three percent rise in stamp duty (SDLT) on second homes or buy-to-let property at the Review, kicking off in April 2016, so act fast to save on tax. If you’re a few years off moving abroad, perhaps investigate the option of downsizing into a UK home now that could also be your future rental property once you’ve retired to the sun. Remember too that Osborne has announced plans to remove landlords’ ability to deduct mortgage interest from their rental income.

Understand the Statutory Residency Test (SRT) and how it could affect you. The SRT determines where you are tax resident, and is especially relevant to people who split their time fairly equally between homes in the UK and abroad. Regulation that came into effect in recent years has minimised any flexibility there was on where British people are registered as resident for tax purposes.

– Consult a lawyer about inheritance. Owning a property abroad brings with it the responsibility of putting in place the necessary paperwork to ensure it is inherited according to your wishes. A new EU succession law that came into effect this year states that the succession law of the country where a deceased person was ‘habitually resident’ at the time of their death (i.e. a British expat living in Spain or France) applies to the deceased assets. However, at the same time an individual can elect to apply the law of their nationality, i.e. the UK, to all their assets through a statement in their will or a similar document. This would apply only to the property of a non-resident homeowner and not their worldwide estate. For peace of mind, speak to lawyer about making the necessary will.

– Consult a financial planning firm experienced in helping expats well before moving overseas. Preparation is key, as it is harder to change things in the UK once you are a tax resident somewhere else. As well as some of the above, typical things you might need to review include life assurance or savings policies, what to do with ISAs or large cash deposits, personal pensions and accummulated pension rights.

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