Note that in the following case studies, a full analysis of each client’s position would be undertaken to ascertain whether or not the course of action outlined below would be appropriate to ensure that the advice is in the client’s best interests. These should hence be regarded as general examples only and not a recommended course of action.
Joanna and her family are due to depart the UK shortly. They have arranged their visas, decided which country they will be moving to and are starting to plan for their move.
As part of the move process, they wish to ensure they optimise their position with regards to their UK financial assets and are not caught out by paying excessive levels of taxation.
Joanna’s family have a variety of UK based financial assets, including pensions, property and investments but have many questions including:
Should they keep these or sell/transfer their assets on emigrating?
How will their rental property be taxed and what do they need to do to minimise this?
If they sell/transfer the assets, how will these be taxed?
Is better to sell/transfer pre or post emigrating?
Is it better to sell/transfer in the current or next UK tax year?
Should I leave the UK pre or post 5th April?
Are there any extra tax refunds and extra benefits their may be entitled to maximise on emigrating?
Will they retain tax free allowances?
How do they cover off their UK Inheritance tax liability which carries over to the new country with them?
What about future inheritances from parents and will planning?
How do they maximise the rate they will obtain on foreign exchange?
Prism Xpat advises Joanna and her family on how to optimise their position on the move so they know how and when to act to minimise taxation and make the most of the ‘one-off’ opportunities a move abroad present.