Private Wealth Management Service For UK Expats
This article is intended for British expats, and runs through the key financial planning priorities to consider when leaving the UK.
Expat Financial Planning
Moving overseas can be a truly enriching experience, offering new cultures and a fresh perspective on life. But amidst the adventure, it's essential to keep a firm grip on your wealth management and ensure you have a robust financial plan in place.
Life abroad comes with its own set of unique challenges, from navigating complex tax rules to managing currency risk and protecting your estate. As a UK expat, there is a lot to adapt to and consider, but with the right guidance you can build a secure future abroad, whilst protecting and growing your wealth.
Expat Wealth Management | The Key Considerations
Expat life can bring exciting new financial opportunities—from access to global markets to a broader range of investment options which may not have been available in the UK. Depending on where you’re living, you might also benefit from tax-efficient investment products designed specifically with expats in mind.
However there may also be risks and complexities to navigate, and a carefully structured financial plan will be invaluable. Some key considerations include:
Retirement Planning For UK Expats
Even if you are not yet retired, it’s vital for expats to start planning early—especially when it comes to pensions. Moving abroad may limit the way you access and manage your pension, and whilst you might still be able to draw from your UK pension, it might not be the most efficient or beneficial option for your long-term wealth.
In many cases, there could be better solutions available in your new country, such as locally compliant, tax-efficient bonds or options like the International SIPP, which is specifically designed to help expats grow their pension pots and enjoy a comfortable, prosperous retirement.
By working with an expert financial adviser, you can ensure your retirement savings are protected and optimised, so you’re well-prepared to enjoy your golden years, wherever in the world you choose to spend them.
Estate Planning
Navigating the complex world of inheritance tax and succession laws can be a real challenge for UK expats, especially in countries like France or Spain, where laws such as forced heirship may even override your UK will.
To protect your loved ones from unnecessary tax burdens and ensure your assets are distributed according to your wishes, it’s essential to have a valid international will, or separate wills tailored to each jurisdiction. Tools such as trusts and strategic gifting can help reduce inheritance tax liabilities.
International estate planning is complex, so seek advice from a specialist adviser who understands cross-border IHT rules.
The Wealth Genesis: Estate Planning for UK Expats Living Abroad
Tax Obligations
One of the first financial hurdles expats face is understanding where and how to pay taxes- the last thing you want is to be hit with unexpected tax penalties or fines.
Your tax obligations will depend largely on your country of residence. For UK expats, tools like the HMRC Statutory Residence Testhelp determine your UK tax status. Fortunately, many countries have double taxation treaties with the UK, which can prevent you from being taxed twice.
Working with a cross-border tax specialist ensures you remain compliant while taking advantage of any tax credits or exemptions available to you, and could even reduce your overall tax bill.
Currency Risk Management
Expats often earn, invest, and spend in multiple currencies, which exposes them to currency exchange risk- the potential for financial loss due to fluctuating exchange rates. Even small swings in currency values can erode your wealth over time.
To mitigate this, consider diversifying your assets across multiple currencies and jurisdictions, using multi-currency accounts, and working with a financial adviser to employ strategies such as hedging and careful timing of conversions.
Financial Regulations
When living abroad, it’s important to be aware of the financial restrictions you might face depending on your country of residence. For example, once you’re no longer a UK tax resident, you can’t open or contribute to an ISA.
Since Brexit, many UK financial institutions have tightened their rules, and some no longer offer services to British citizens living overseas. This means your access to UK bank accounts, investment platforms, or even pension providers could be limited or restricted. Understanding these challenges in advance, and staying informed on potential changes in laws and regulations can help you make informed decisions and avoid any surprises with your finances abroad.
Investment Objectives
Getting clear on your investment goals is a key part of securing your financial future. By working with an expert, you can structure your portfolio to align with your goals, risk tolerance, and personal circumstances. At The Wealth Genesis, we work closely with our clients to build tailored investment strategies to meet a range of objectives.
For example, capital protection is vital, especially when currency fluctuations, exchange rate risks, and global events can impact your wealth. A diversified portfolio across different currencies and jurisdictions can help shield your assets.
Income generation may be your priority, particularly if you want your investments to support your lifestyle abroad. With expert guidance, you can access opportunities which generate income while helping your wealth grow. And for those focused on long-term capital growth, we can help build a strategy that supports your future aspirations.
Financial Planning For UK Expats | Managing Your Wealth Abroad
Wealth management as a UK expat can feel overwhelming, but you don’t have to navigate it alone. At The Wealth Genesis, we specialise in supporting expats with bespoke financial strategies.
Whether you want to build a diversified international investment portfolio, optimise your estate planning, explore offshore investment accounts, or other financial products like locally compliant investment bonds or the International SIPP - our team can help.
Our advisers understand the complexities of managing wealth abroad and are fully regulated to advise clients around the world.
