I have been living outside the UK for 23 years.
I rarely get homesick. But last weekend it hit me hard.
While I’m not packing my bags just yet, I realise that many expats eventually do.
Thinking of returning to the UK?
Prepare yourself to face a unique set of financial challenges and opportunities.
It is always best to start planning as early as possible. Here are 10 financial action points to get you started.
Residency Status
Determine your residency status for tax purposes.
The UK uses a Statutory Residence Test (SRT) to determine if you are UK resident for tax purposes.
Open or Reactivate a UK Bank Account
If you closed your UK bank account when you left, or if it’s been dormant for a long period, you might need to open or reactivate it.
This is essential for your daily transactions, direct debits, and salary payments.
Review Your Tax Liabilities
It pays to understand the tax implications of assets held overseas and ensure you comply with UK tax laws.
This might involve declaring foreign income or gains.
If you have been living somewhere like Dubai or Saudi Arabia, it could mean crystalizing any gains before you return.
Notify Relevant Authorities
Inform HM Revenue & Customs (HMRC) about your return to ensure that you are on the correct tax code.
You can do this by completing a Starter Checklist form (this used to be called a P46).
This brings you back into the UK tax system and lets HMRC know of any income you’ve earned and tax you’ve paid.
Also, if you receive benefits or have any debts, such as student loans, make sure they are informed.
Re-establish Credit
If you’ve been away for an extended period, your credit score in the UK may be outdated or non-existent.
Consider using credit-building tools or credit cards to re-establish a good credit history.
Healthcare and Insurance
Register with a General Practitioner (GP) and, if necessary, review your health insurance options.
Depending on how long you’ve been away, you might need private health insurance until you re-qualify for the National Health Service (NHS).
Also, review other insurances, like home, car, and life insurance.
Pensions and Retirement
Review and consolidate any pensions you have from abroad.
Determine if transferring them to a UK pension scheme is possible or beneficial.
If you have a UK pension, make sure you understand its current status and any contributions or benefits you’re entitled to.
Estate Planning
Update or create a will that’s valid in the UK.
Assets held overseas might require different considerations, so seeking appropriate legal advice can be valuable.
Property and Mortgages
If you own property abroad, consider its financial implications, such as rental income, taxes, and whether to sell or keep it.
If you’re buying a property in the UK, understand the current mortgage market and the requirements for expats or those who’ve recently returned.
Professional Financial Advice
Consider seeking guidance from a financial advisor familiar with the opportunities and pitfalls faced by returning expats.
This can help you navigate tax implications, investments, and other financial matters to ensure you make the most of your return to the UK.
💡 Email hello@rossnaylor.com to find out more about my special service for expats returning to the UK.
Further Reading
Five big tax mistakes made by British expats and how to avoid them
How do I keep my UK bank account when I live abroad?
Navigating the UK Temporary Non-Residence Rules: A Guide for Expats
