Considering leaving the UK or emigrating? Below are four points your will need to consider:
1. Your UK estate
If you have land or property in the UK you should have a Will which deals with that property. Ideally your UK Will should cover the entirety of your UK estate and should work in conjunction with any foreign Will.
2. Powers of Attorney
It may be beneficial to execute a power of attorney for someone to deal with your UK assets whilst you are abroad. Powers of attorney can be time limited or restricted to a specific activity, such as buying and selling property or maintaining a particular bank account. Lasting Powers of Attorney (LPAs) can be used where the person giving the power loses mental capacity. These are often useful for individuals with a variety of assets, properties or business interests.
You may wish to leave your pension in the UK and continue to pay in to it. However, if you meet certain conditions, you can arrange to transfer your UK pension to a Qualifying Recognised Overseas Pension Scheme (QROPS) and, depending on your country of residence, this may be tax efficient.
The first thing you should do is contact HMRC and inform them that you are leaving the UK. Changing your residential status affects the way you are taxed for income and capital gains tax (CGT) purposes. A change in your domicile will also affect the way you are taxed for inheritance tax (IHT). There are also implications for stamp duty land tax (SDLT). These issues are often complicated and professional advice should be sought where possible.
There are several immediate factors that should be considered when moving abroad whether temporarily or indefinitely. Whatever your circumstances, Sherrards can assist in providing tailored advice to individuals to suit their needs. We are also part of an international alliance of lawyers and accountants and can put you in touch with the relevant foreign professional should such advice be needed.