If you have paid into a private pension, you'll receive that too, all of which is taxable if it goes over a certain threshold. The UK State Pension you’re eligible to receive is based on your National Insurance contributions. You should also notify your local government’s social security agency, such as the Department for Work and Pensions (DWP) so they can update their records. If you receive a UK pension while a resident overseas, you’ll need to contact the International Pension Authority to let them know you’re returning to the UK. They will guide you on any FX tools you can use to make the most of your money, such as a forward contract, which lets you lock in a favourable exchange rate to then be used at a later date. It's also a good idea to use a foreign exchange specialist when transferring the proceeds of a sale. They can inform you of any rules or legislation that may apply to you as a returning British expat. It's also wise to consult a tax expert before you leave. You may also want to restructure your assets to take advantage of tax efficiencies and limit capital gains tax on the sales. If you own assets abroad like property and cars, you'll need to decide whether you want to sell them before you return. If you have lived outside the UK for more than five years, you’ll be subject to different tax liabilities for income and capital gains. Make sure you’re aware of the relevant filing deadlines for tax returns. You’ll need to complete a self-assessment if you are self-employed or have other income such as money from renting out a property or income from savings, investments and dividends. Notify HMRC of your returnĪs a British citizen moving back to the UK, you may need to register your return with HMRC. Consider the effect the exchange rate will have on your money when converted back into pounds sterling, and bear in mind that many banks' exchange rates are considerably less competitive than using a currency specialist when converting your foreign currency. You might also want to close any non-UK current and savings accounts so that any accumulated interest on these is not taxable on your return to the UK. If you’ve been out of the country for many years, you may find that your old bank account has been closed due to inactivity and that you now don’t have enough of a recent credit history to be eligible for services like overdrafts, credit cards or loans. If you didn’t keep a bank account open in the UK when you moved abroad, you’ll need to open one before you return so you can start transferring funds into it before you get back. There are many financial considerations for British expats returning to the UK, from understanding tax status to repatriating funds and managing property ownership. By planning ahead, you can ensure any savings or assets you've accumulated whilst living abroad are sufficiently protected. It’s worth getting your finances in order in the current UK tax year before you intend to move to take advantage of tax savings. You'll also need to check whether you can transfer insurance policies or whether you'll need to secure new cover as a UK resident. You'll also need to make sure you can transfer your assets back to the UK. You’ll need to arrange to pay UK tax on your income and other earnings once you resume UK residency.īefore returning home permanently, you’ll need to make sure that you still have access to the income and pensions that you live on abroad. Will I be allowed to move back to the UK?īritish citizens have the right to return to live in the UK, although it can take several months to re-establish entitlements such as free NHS care, benefits and housing. We’ve put together this guide for the major changes you will need to prepare for. There’s a lot to consider when moving across borders, from the physical relocation to dealing with tax rules and financial planning. Are you a British citizen currently living abroad and considering moving back to the UK? With all the political, social and economic upheaval of the last few years, it’s understandable if you’re one of the many British expats returning to the UK or considering doing so in the next few years.
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