Returning to the UK

Your guide to taxation

As an expatriate, your clients financial plans will need to be flexible enough to meet changes in their lifestyle, such as becoming tax resident in the UK.

Careful planning can help them boost their finances by preventing tax eroding their savings and investments unnecessarily, but does not need to be complex.

When considering your clients return to the UK, it’s important to understand their UK tax status and how the tax system back home could impact their finances. 

By staying up to date with the latest reliefs and allowances and investing their money in tax-efficient products, they can ensure that they don’t pay any more tax than they need to.

International life plans taken out, while they are an expatriate, can play an important role in their financial planning as they can help them achieve tax efficiency when they return to the UK.

Personal portfolio bond legislation

It is very important that you inform us if you become UK resident, so we can check the fund rules relating to your policy.

If your policy has fund rules allowing you to hold “personalised” assets (such as equities and bonds) it will be subject to a penal annual tax charge based on “deemed gains” equalling 15% of the policy premium, once you return to the UK.  

This annual charge would occur on each policy anniversary however, it is possible to avoid this annual tax charge if you consent to us changing your policy fund rules to allow collective investments only.  

You should also contact your financial adviser to discuss your options.

Download our guide to taxation when returning to the UK here

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The information provided here does not constitute investment advice or an offer to provide any product or service by Friends Provident International.

Please seek professional advice, taking into account your personal circumstances, before making investment decisions. We can accept no liability for loss of any kind incurred as a result of reliance on the information or opinions provided here.