Have you thought about how moving overseas could affect your worldwide estate?

Article written by The Overseas Guides Company

Are you confident your pension – or pensions – and any other assets will be earning you the maximum amount of income or interest possible, once you’ve left the UK?

If you’re emigrating and have a pension and assets either in the UK, or perhaps spread across a number of countries, careful financial planning should be a priority. Here are some of the key considerations – some may or may not be relevant to you – that highlight the importance of proper planning and why seeking professional advice is invaluable:

• As a rule, organising your financial affairs and re-distributing assets before leaving the UK is easier than doing it once you have left – and could save you money.
• Inheritance laws and taxation differ around the world to in the UK, so seek professional advice to ensure your assets are protected for future generations and tax due is kept to a minimum.
• Do you understand the true meaning of “domicile” – and the consequences of where you are classed as “domiciled” on your assets?
• If you intend to spend a lot of time outside of the UK, are you aware of how your residence status could change and the implications of the Statutory Residence Test, to be introduced in April 2013?
• If you’re moving out of the UK for good, you could benefit from moving your pension overseas into another scheme, such as a SIPP or Qualifying Recognised Overseas Pension Scheme (QROPS).
  Conditions apply, but typically you could gain greater control over your pension and reduce your tax bill. It might be that your pension is fine where it is, but until you ask, you won’t know!
• As an expat, be aware of large cash balances held in the UK – moving cash deposits offshore to free up UK tax allowances could be an option.
• Even after leaving the UK, you may need to complete a UK tax return. Note, there are significant penalties for late submission.

If you’d like to be put in touch with an authorised financial advisory firm, who could advise you on all aspects of financial planning and taxation, particularly if you are about to move overseas, email OGC@overseasguidescompany.com or call The Overseas Guides Company’s Resource Centre on 0207 898 0549.

If you are emigrating or buying an overseas property, always use a currency exchange specialist to transfer your pounds into your new local currency – you’ll receive better exchange rates than asking your bank to send the money for you, and receive a swifter and more personal service. For more information on this, visit the Currency Zone.