Potential Benefits of Financially Planning Your Move Overseas
Monica Patrascu, Financial Planner at Blacktower Financial Management explains why it’s important to consider the financial implications of emigrating overseas before moving.
There are many things you should consider when migrating from a financial perspective which can really set your mind at ease and put you on track to help reach your financial goals, such as protection planning, tax planning, investment planning and pension planning to name just a few.
To give an example of how pre-migration planning can help, many UK residents make the move to France each year and a high proportion of those are migrating to France for retirement. This is where pension and tax planning prior to your move can really make a difference.
Regardless whether you are coming to the UK or moving out of the UK, there are simple steps you should make, like keeping your local current bank account for a little longer (potentially never closing it to receive protection payments or other unplanned payments) after you have left and also forwarding your post with local post office to a friend or family or even your new address. Local providers always work better with local banks.
Drawing down on your pension
In the UK, if you had a personal pension for example, and are over the age of 55, you can draw what is known as a Pension Commencement Lump Sum (PCLS) from your pension. The PCLS, is free of income tax. However, Les Impots (French equivalent of the UK HM Revenue & Customs (HMRC)) may not see it this way and instead, may seek to tax your PCLS as income if you were to draw this once resident in France.
There are also considerations if you are leaving foreign shores for the UK. Prior migration planning can really make a difference. If you had, say, an Australian Superannuation scheme, were past your Preservation Age and no longer working but planning on moving to the UK, you could potentially draw funds/income from your superannuation free of Australian tax. However, if you were UK resident when you drew those funds, there is no guarantee that the UK HMRC will see it the same way and instead, you may find that a withdrawal from your Australian Superannuation is tax assessible.
In many cases, prior migration financial planning can put you in a very good position to help your migration or international move work in your favour and for your financial future. Plan your migration finances and plan your currency transactions. Seek the skills of a specialist Financial Planner.
Blacktower Financial Management Ltd have a long history in providing specialist international financial planning advice and are authorised and regulated by the UK Financial Conduct Authority (FCA). For more information please call our International Financial Planner Monica Patrascu on 0203 7409 732 or email email@example.com or visit https://www.blacktoweruk.com/free-guides