Our services for expats and emigrants
Global Retirement Strategies
This involves making use of the dual UK and Australian/NZ tax, pensions and financial systems to create tailored strategies that optimise the after-tax value of expatriates'/emigrants' global retirement assets. These market leading strategies are developed by Prism Xpat’s technical team and are continually refined when legislation changes across the UK, Australia or New Zealand to ensure that the optimum solution is provided. Through introducing these strategies to individuals, significant extra wealth is created through tax rebates, cross-border pension structuring and planning. Extra value created through these strategies can easily add an extra 50% to a client’s after-tax retirement assets compared to our Global Pension Transfer Service alone (see below). Once the strategy is complete, we then work with the clients to implement these strategies.
Global Pension Advice and Pension Transfer Services
We advise on whether individuals should maintain their UK pensions in the UK, or transfer them to Australia or New Zealand. The services are advice based, and it is not a transfer-at-all-costs exercise. Through our actuarial expertise (actuaries being responsible for valuing defined benefit schemes in the UK as well as setting pension funding assumptions with trustees), we initially advise on whether a transfer value offered by a UK pension scheme is fair or not (hence protecting the client from losing out through substantial penalties imposed by UK private and defined benefit pension schemes). This analysis is a key step, as with many UK schemes being underfunded in the current market climate, we estimate that over 30% of UK pension schemes should not be transferred to Australia or New Zealand. The advice we provide considers the dual tax impacts and each person’s UK pension scheme intricacies. Assuming a pension transfer is in the client’s best interests, we then implement this for the client.
As part of this service, we have significant experience in dealing with pension funds exceeding A$450,000 (ie to avoid the issues caused through Australia’s three year pension contribution cap), and in advising on whether or not to move high-value funds to New Zealand.
Global Investment Strategies
On moving countries or living abroad, a client will change tax residency and the tax status of all the client’s assets will also change. Further, by selling/purchasing shares/investments at the right/wrong time of the year without considering these changes, significant liabilities (eg. capital gains taxes, rebates, penalties) are likely to be incurred. Further, opportunities exist to hold investments abroad to save tax. Prism Xpat’s Global Investment Strategies guide clients through what to do in this regard, including when/when not to act so that these taxes can be minimised and wealth creation maximised through cross-border investment structuring.
Global Inheritance Tax Structuring
On leaving the UK, the majority of UK nationals initially remain liable for inheritance tax. This tax is charged on death at 40% of the client’s assets above the UK’s inheritance tax threshold (currently £312,000). For a client with £2m in assets, this is a potential tax liability of over £675,000. As inheritance tax does not exist as a concept in Australia or New Zealand, the most appropriate products are not readily available to protect against this liability in these markets. To optimize the client’s position, any such strategy needs to be established and implemented in the UK. Prism Xpat works to save their clients the full amount of their liability through cross-border strategies which are not adversely taxed by the Australian or New Zealand tax authorities.
Endowment and Insurance Advice
On emigrating from the UK, people require guidance on how to act with regards to their UK-based endowment policies and insurances considering the UK tax system and the tax system abroad. Prism Xpat undertakes an analysis of these considering the dual markets and provides advice on how the client should act to optimise their position.
Property Advice
Emigrants/expats require guidance on how their UK property portfolio will be impacted considering the UK tax system and the tax system abroad. Prism Xpat are pleased to discuss these issues with the client or the client’s accountant to help minimise the tax liability in all instances. In extremely complex situations, Prism Xpat works with third-party property specialists to provide the appropriate advice to the client.
Advice on Business Structuring
Whilst Prism Xpat does not provide this service in-house, we meet this need for our clients by working with well credentialed accountants who are experienced in business sale/purchase issues for emigrants to/from the UK. We would also be pleased to work with the business owner’s accountant to guide them through the implications of any decisions being made. In many cases, this can lead the client to save the full amount of UK capital gains tax they would otherwise be required to pay on a sale.
Tax returns on leaving the UK
Prism Xpat provides you with information on how to get your own tax rebates maximised on leaving the UK. Where required we also work with your accountant or other third parties who are able to complete the tax return for you, no matter how complex your situation.
Advice on Currency Exchange and Bank Account set ups
We will assist you in maximizing the value of the capital and cash you are transferring abroad. We'll take you through the foreign exchange process and let you know which foreign exchange companies are likely to provide you with the best rate net of commissions and charges.
There are numerous banks you can join on your move. These all have different features and benefits – some will be better suited to you than others. Prism Xpat will be pleased to guide you through this decision, taking into account your own personal circumstances.
