Ross Naylor - Warsaw Based Financial Adviser

💡 Did you know that for £3.45 a week, you can make voluntary contributions to top up your UK State Pension entitlement while living in Poland?

That is about the price of a medium Starbucks latte.

So for the cost of a weekly cup of coffee, you can secure a stream of income in retirement that is currently £11,502.40 per year (£23,004.80 for a couple).

What’s more, if you retire in Poland, it increases yearly with inflation like in the UK.

What a bargain 👍🏻

Find out more in my Expat State Pension Guide: https://rossnaylor.com/expat-state-pension-guide/

With UK public finances in quite a pickle, the upcoming Labour budget is expected to bring significant changes, especially in areas like taxation, pensions, and inheritance planning.

As a British expat in Poland, these changes could have a serious impact on your financial planning.

In this post, I take a closer look at the potential changes and what they could mean for you.

What to Expect from the Upcoming Labour Budget: UK Expats With UK finances in quite a pickle, the upcoming Labour budget is expected to bring significant changes, especially in areas like taxation, pensions, and IHT.

Keeping a UK bank account active while living overseas is a common concern among British expatriates.

There are several reasons for wanting to do so, including receiving UK pension payments, paying for properties or financial commitments back home, or simply for ease of access to funds when back visiting friends and family.

🧠 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗬𝗼𝘂𝗿 𝗕𝗮𝗻𝗸’𝘀 𝗣𝗼𝗹𝗶𝗰𝘆 𝗪𝗶𝘁𝗵 𝗥𝗲𝗴𝗮𝗿𝗱𝘀 𝘁𝗼 𝗘𝘅𝗽𝗮𝘁𝘀

The first step in maintaining your account is to understand your bank’s specific policies regarding non-resident account holders.

Banks in the UK have varying regulations and requirements for expats, and knowing where you stand is key.

Barclays, for example, no longer offers personal current or saving accounts to customers who have an address registered with them outside of the UK.

However, other high street banks, such as Lloyds Group and Santander (at the time of writing) do allow expats to maintain their UK accounts.

Before your move, ideally, or after if you have not done so, contact your bank to discuss your status change and inquire about any documentation or procedural updates required to keep your account operational from abroad.

This is vital as sudden foreign transactions could flag your account for fraud, leading to it being frozen.

☎️ 𝗨𝗽𝗱𝗮𝘁𝗲 𝗬𝗼𝘂𝗿 𝗖𝗼𝗻𝘁𝗮𝗰𝘁 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻

Ensuring that your bank has your current contact information, including your overseas address, is crucial.

This not only helps in keeping your account secure but also ensures that you receive important communications regarding your account without delay.

Most banks may have online portals where you can update your details easily; however, it’s always a good idea to confirm these changes directly with your bank.

💰 𝗕𝗲 𝗔𝘄𝗮𝗿𝗲 𝗼𝗳 𝗧𝗮𝘅 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀

As an expat, it’s important to understand the tax implications of holding a UK bank account while residing abroad.

Depending on your country of residence and its tax treaty with the UK, you may be subject to taxation on the interest earned in your UK account.

Consulting with a tax professional who understands the intricacies of expat tax affairs can provide clarity and help you navigate these complexities.

🏧 𝗥𝗲𝗴𝘂𝗹𝗮𝗿 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆

Keep your account active by making regular transactions.

This can be as simple as transferring a small amount between accounts or setting up a direct debit.

Regular activity helps prevent your account from being flagged as dormant, which could complicate access to your funds.

𝗧𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲

Keeping a UK bank account active as an expat requires a proactive approach.

By understanding your bank’s policies, updating your contact information, leveraging online banking, considering mail forwarding, understanding tax implications, and maintaining regular account activity, you can ensure seamless financial management from any corner of the globe.

In the UK, Inheritance Tax is paid by the estate of the deceased.

However, in many other countries it is paid by the recipient of the inheritance.

🇵🇱 Poland is one of those coutries.

As an expat here, you may be subject to taxes on your inheritance even if the estate itself has already been taxed in the UK (the UK Poland Double Tax Treaty doesn't cover IHT).

The good news is that if the inheritance was from a close relative then there will be no tax to pay.

However, even it there is no tax due, it still needs to be declared to the Polish tax office.

Failure to do so within the requisite time period will result in a sizeable bill 😢

𝗧𝗵𝗿𝗲𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘆𝗼𝘂 𝗱𝗼𝗻'𝘁 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗱𝗶𝗲 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗮 𝘄𝗶𝗹𝗹

Death - the great equalizer. It comes for us all, but for those who depart this mortal coil without a will, it brings a host of complications for those left behind.

Dying intestate – that's what we call shuffling off this mortal coil without a last will and testament – is like throwing a gr***de into the lives of your loved ones.

1️⃣ 𝗔𝘀𝘀𝗲𝘁 𝗔𝗻𝗮𝗿𝗰𝗵𝘆: Forget about your wishes, they don’t matter anymore.

The courts step in to divide your worldly goods according to the intestacy laws of your jurisdiction.

The result? Your assets might end up distributed in ways that would make you spin in your grave, sparking family feuds and stress that you could’ve easily prevented.

2️⃣ 𝗔𝗱𝗺𝗶𝗻𝗶𝘀𝘁𝗿𝗮𝘁𝗼𝗿 𝗥𝗼𝘂𝗹𝗲𝘁𝘁𝗲: Without a will, the court appoints an administrator for your estate, and it might be the last person on Earth you would've chosen.

This court-appointed decision-maker might not know your wishes or what your family needs.

Result? Delays, extra expenses, and a mess of administrative complexities.

3️⃣ 𝗚𝘂𝗮𝗿𝗱𝗶𝗮𝗻𝘀𝗵𝗶𝗽 𝗚𝗮𝗺𝗯𝗹𝗲: If you have kids or dependents, dying intestate is like rolling the dice with their futures.

The court will decide who gets to raise them.

Of course, the decision is made in the child’s best interest, but it might not be the person you would’ve trusted with your most precious legacy.

Don’t roll the dice with your intentions. Get a will. It's not just a piece of paper; it’s a roadmap for your loved ones and a way to assert your wishes from beyond the grave.



📷

It has been estimated that there could be about 2.8 million lost or forgotten pension pots in the UK, worth an average of £9,500 each. I.e. over £26.6 billion in total.

This is hardly surprising; the days of working for one employer for 40 years and then retiring with a gold carriage clock are over.

Research suggests that average workers will now have 11 different jobs during their life.

As people move from job to job more and more frequently, it becomes harder and harder to keep on top of old pensions.

This issue is even more acute for expats as we not only move from job to job but also from country to country.

However, keeping on top of old pensions is definitely worth the effort.

That extra plan may just be the difference between you maintaining your desired lifestyle in retirement and not.

How to find a lost pension | Lost or forgotten pension pots How to find a lost pension? A common question for expats who move from country to country. Luckily, the solutions are fairly straightforward.

𝗦𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘄𝗲𝗲𝗸𝗲𝗻𝗱

I recently launched a new resource, where I answer some of the common questions that expats have when they are leaving the UK 🇬🇧 and moving to Poland 🇵🇱

You can find it here: https://rossnaylor.com/leaving-the-uk/

🌍 𝗪𝗲𝗲𝗸𝗹𝘆 𝗘𝘅𝗽𝗮𝘁 𝗠𝗼𝗻𝗲𝘆 𝗧𝗶𝗽: 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗬𝗼𝘂𝗿 𝗧𝗮𝘅 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀 🌍

As an expat, it is important to familiarize yourself with both UK and local tax laws in your country of residence.

🇬🇧 𝗨𝗞 𝗧𝗮𝘅 𝗟𝗮𝘄𝘀

Even if you’re miles away, understanding your tax responsibilities in the UK is crucial.

Did you know that your UK tax obligations don’t automatically end when you move abroad?

Factors like UK income, residency status, and domicile can influence what you owe.

Stay informed to avoid unexpected tax bills or legal issues.

📍 𝗟𝗼𝗰𝗮𝗹 𝗧𝗮𝘅 𝗟𝗮𝘄𝘀:

Each country has its unique tax system, and as an expat, you must comply with these laws.

Ignorance is not bliss when it comes to taxes!

Research thoroughly or consult a local tax expert.

Understand residency rules, income tax rates, and any treaties that might exist between the UK and your new home to prevent double taxation.

💡 𝗞𝗲𝘆 𝗧𝗶𝗽𝘀

𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱: Tax laws can change. Regularly check for updates in both the UK and your country of residence.

𝗦𝗲𝗲𝗸 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗔𝗱𝘃𝗶𝗰𝗲: Tax matters can be complex. A professional can provide tailored advice for your situation.

𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗗𝗼𝘂𝗯𝗹𝗲 𝗧𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀 (𝗗𝗧𝗔𝘀): DTAs can save you from being taxed twice on the same income.

𝗞𝗲𝗲𝗽 𝗗𝗲𝘁𝗮𝗶𝗹𝗲𝗱 𝗥𝗲𝗰𝗼𝗿𝗱𝘀: Document your income, taxes paid, and any communications with tax authorities.

🤝 𝗡𝗲𝘁𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝗮𝗻𝗱 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗦𝘂𝗽𝗽𝗼𝗿𝘁: Connect with fellow UK expats in your area. Sharing experiences can provide valuable insights and tips.

📚 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀: Visit HM Revenue & Customs for UK tax information. For local tax laws, check the official government website of your country of residence.







📷

𝗛𝗼𝘄 𝗱𝗼 𝗜 𝗸𝗲𝗲𝗽 𝗺𝘆 𝗨𝗞 𝗯𝗮𝗻𝗸 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝘄𝗵𝗲𝗻 𝗜 𝗹𝗶𝘃𝗲 𝗮𝗯𝗿𝗼𝗮𝗱? 🇬🇧 🏧

Keeping a UK bank account active while living overseas is a common concern among British expatriates.

There are several reasons for wanting to do so, including receiving UK pension payments, paying for properties or financial commitments back home, or simply for ease of access to funds when back visiting friends and family.

🌐 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗬𝗼𝘂𝗿 𝗕𝗮𝗻𝗸'𝘀 𝗣𝗼𝗹𝗶𝗰𝘆 𝗪𝗶𝘁𝗵 𝗥𝗲𝗴𝗮𝗿𝗱𝘀 𝘁𝗼 𝗘𝘅𝗽𝗮𝘁𝘀

The first step in maintaining your account is to understand your bank’s specific policies regarding non-resident account holders.

Banks in the UK have varying regulations and requirements for expats, and knowing where you stand is key.

Barclays, for example, no longer offers personal current or saving accounts to customers who have an address registered with them outside of the UK.

However, other high street banks, such as Lloyds Group and Santander (at the time of writing) do allow expats to maintain their UK accounts.

Before your move, ideally, or after if you have not done so, contact your bank to discuss your status change and inquire about any documentation or procedural updates required to keep your account operational from abroad.

This is vital as sudden foreign transactions could flag your account for fraud, leading to it being frozen.

📱 𝗨𝗽𝗱𝗮𝘁𝗲 𝗬𝗼𝘂𝗿 𝗖𝗼𝗻𝘁𝗮𝗰𝘁 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻

Ensuring that your bank has your current contact information, including your overseas address, is crucial.

This not only helps in keeping your account secure but also ensures that you receive important communications regarding your account without delay.

Most banks may have online portals where you can update your details easily; however, it's always a good idea to confirm these changes directly with your bank.

⚠️ 𝗕𝗲 𝗔𝘄𝗮𝗿𝗲 𝗼𝗳 𝗧𝗮𝘅 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀

As an expat, it's important to understand the tax implications of holding a UK bank account while residing abroad.

Depending on your country of residence and its tax treaty with the UK, you may be subject to taxation on the interest earned in your UK account.

Consulting with a tax professional who understands the intricacies of expat tax affairs can provide clarity and help you navigate these complexities.

💷 𝗥𝗲𝗴𝘂𝗹𝗮𝗿 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆

Keep your account active by making regular transactions.

This can be as simple as transferring a small amount between accounts or setting up a direct debit.

Regular activity helps prevent your account from being flagged as dormant, which could complicate access to your funds.

🎯 Every week I send out a short email answering a common expat money question like the one above. Use the link in the comments to subscribe or dm me if you have a question that you want answering.

📷 Eduardo Soares

Are you considering a move to Poland?

Whether you’re already living here or just thinking about it, it’s important to know the common financial planning mistakes that many expats make.

Here are some tips and tricks to help you avoid them and make the most of your move to Poland.

Moving to Poland Tips and Tricks: Essential Financial Planning for Expats: https://financialadvicepoland.com/moving-to-poland-tips-tricks/

The safe withdrawal rate (SWR) is a guideline used by retirees to determine how much they can withdraw from their retirement savings each year while minimising the risk of running out of money before they die.

However, it doesn't work for everyone and if you are an expat, there are additional complications to consider.

Find out more in my recent blog post - The 4% Rule Explained: Is It Right for Your Retirement? (link 🔗 in the comments below 👇🏻 )

𝗜𝗳 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 𝗮 𝗹𝗶𝗳𝗲 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗽𝗼𝗹𝗶𝗰𝘆 𝗼𝗿 𝗮 𝗽𝗲𝗻𝘀𝗶𝗼𝗻, 𝗵𝗮𝘃𝗲 𝘆𝗼𝘂 𝗻𝗼𝗺𝗶𝗻𝗮𝘁𝗲𝗱 𝘄𝗵𝗼 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 𝗶𝗻 𝘁𝗵𝗲 𝗲𝘃𝗲𝗻𝘁 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗱𝗲𝗮𝘁𝗵?

This is something that I strongly advise all clients do.

If you don’t have an up-to-date beneficiary nomination form in place, your assets may be distributed in a way that is very different from what you had in mind.

Making a beneficiary nomination puts you in control and gives you certainty over where your money will go.

It can be particularly useful if you have a more complex family situation, such as an ex-partner or children of current and former relationships.

𝗗𝗶𝗱 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄❓

A will doesn’t address how your pension funds are distributed on death.

The reason for this is that pension assets do not form part of your estate.

This is why it is so important to make sure that your pension provider knows what your wishes are.

𝗙𝘂𝗿𝘁𝗵𝗲𝗿 𝗥𝗲𝗮𝗱𝗶𝗻𝗴

You can read more about the importance of properly nominating beneficiaries here:

Beneficiary nomination | Why is this so important? Find out why I recommend that all clients maintain an up-to-date beneficiary nomination form for their pensions and life insurances.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻:

Can I save into a UK pension plan if I live in Poland ❓

𝗔𝗻𝘀𝘄𝗲𝗿:

Yes, you can live in. Poland and save into a UK pension scheme.

However, there are limits to the tax relief you can claim on your contributions.

If you move to Poland, for the next 5 tax years you can still make pension contributions of up to £3,600 a year and get tax relief.

This assumes you have no earnings taxed in the UK. If you do continue to have earnings taxed in the UK, tax relievable contributions can be based on those earnings, or £3,600 a year if greater.

Any contributions must be made to a pension scheme that you were a member of before you left the UK.

𝗪𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝘀 𝗮𝗳𝘁𝗲𝗿 𝟱 𝘆𝗲𝗮𝗿𝘀?

As far as HMRC are concerned, contributions can continue indefinitely after that at any level but with no tax relief.

However, many pension providers won’t accept member contributions that don’t get tax relief, so you would then have to stop making pension payments.

If you become UK tax resident again, this ‘resets the clock’ for the 5 tax year rule.

𝗜 𝗵𝗮𝘃𝗲 𝗯𝗲𝗲𝗻 𝗶𝗻 𝗣𝗼𝗹𝗮𝗻𝗱 𝗳𝗼𝗿 𝗮 𝗰𝗼𝘂𝗽𝗹𝗲 𝗼𝗳 𝘆𝗲𝗮𝗿𝘀 𝗮𝗹𝗿𝗲𝗮𝗱𝘆 𝗮𝗻𝗱 𝗷𝘂𝘀𝘁 𝗳𝗼𝘂𝗻𝗱 𝗼𝘂𝘁 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗶𝘀. 𝗖𝗮𝗻 𝗜 𝗴𝗼 𝗯𝗮𝗰𝗸 𝗮𝗻𝗱 𝗺𝗮𝗸𝗲 𝘂𝗽 𝗳𝗼𝗿 𝘁𝗵𝗼𝘀𝗲 𝗺𝗶𝘀𝘀𝗲𝗱 𝘆𝗲𝗮𝗿𝘀?

Unfortunately not. It works on a “use it or lose it” basis. You can take advantage of the allowance for any of the 5 years that you have left though.

💡 If you have any questions regarding financial planning for expats in Poland, drop me a dm.

𝗔 𝗦𝗲𝗶𝘀𝗺𝗶𝗰 𝗦𝗵𝗶𝗳𝘁 𝗶𝗻 𝗨𝗞 𝗜𝗻𝗵𝗲𝗿𝗶𝘁𝗮𝗻𝗰𝗲 𝗧𝗮𝘅: 𝗪𝗵𝗮𝘁 𝗜𝘁 𝗠𝗲𝗮𝗻𝘀 𝗳𝗼𝗿 𝗘𝘅𝗽𝗮𝘁𝘀 🌍💼

The new Labour government is planning to drop a bombshell on inheritance tax (IHT), and for those of us living abroad, it could be a game-changer.

In a nutshell, they are looking to overhaul the rules governing who gets hit with inheritance tax and who doesn’t .

Right now, your exposure to UK IHT is tied to your domicile — where you call your permanent home.

For many expats, this means you’re still in the crosshairs 🎯 of UK tax authorities, no matter how long you’ve been sipping sangria on a Spanish beach or enjoying the sun in Australia . Your global assets are still on the line.

But here’s where it gets interesting: The proposed new rules suggest that if you’ve been living outside the UK for 10 years, your non-UK assets could finally be off the hook .

That’s right—no more IHT on those overseas investments, even if your heart still belongs to Britain.

This shift is scheduled to go live on 6 April 2025, so you’ve got some time to plan (or panic, depending on your situation).

𝗨𝗞 𝗔𝘀𝘀𝗲𝘁𝘀 🏡

UK assets, like property, aren’t going anywhere however —they’re still under the IHT umbrella, and that’s not changing.

𝗧𝗵𝗲 𝗱𝗲𝘃𝗶𝗹’𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗱𝗲𝘁𝗮𝗶𝗹! 😈

There’s still a lot of grey area in these proposals, and we won’t have the full picture until the Autumn Budget drops on the 30th of October.

That’s when we’ll see just how far the UK government is willing to go in shaking up the IHT landscape.

𝗦𝘁𝗮𝘆 𝗜𝗻𝗳𝗼𝗿𝗺𝗲𝗱💡

I will be providing updates on this, and other matters affecting expats, in my regular newsletter. You can sign up using the link 🔗 in the comments below👇🏻.

An NT (No Tax) Code can be a valuable tool in the expat toolbox, as it allows you to receive pension income without UK tax being deducted at source (and subsequently having to go through the rigmarole of getting HMRC to refund it.

Here's how you get one.

𝗦𝘁𝗲𝗽 𝟭 - Determine Your Residency Status.

First, you need to determine whether you are considered a UK resident or non-resident for tax purposes.

This affects your eligibility for a No Tax code.

𝗦𝘁𝗲𝗽 𝟮 - Use this link to download the relevant form from HMRC: https://www.gov.uk/tax-uk-income-live-abroad/taxed-twice

𝗦𝘁𝗲𝗽 𝟯 - As well as completing the form, you will also need to make an appointment at your local tax office, who will provide confirmation that you are tax resident in Poland.

𝗦𝘁𝗲𝗽 𝟰 - Send the completed form to HMRC.

𝗦𝘁𝗲𝗽 𝟱 - HMRC processes the application and sends the NT code to the pension scheme administrator.

Be aware that it can take HMRC more than 6 months to do this 😭, so you make sure that you have sufficient cash funds available to tide you through.

𝗦𝘁𝗲𝗽 𝟲 - The pension scheme applies the NT tax code to future income payments, which means no tax deducted at source.

____________________________________

𝗚𝗲𝘁 𝗶𝗻 𝘁𝗼𝘂𝗰𝗵

If you have questions regarding drawing your pension benefits while living overseas, please get in touch for a free no-obligation 20-minute call.

During the call, you will get:

🎯 Answers to your basic questions.
🎯 Informal guidance on the options available to you.
🎯 An overview of any services needed to get your expat financial affairs in order.

The Residence Nil Rate Band (RNRB) is an additional inheritance tax (IHT) allowance in the UK.

It is available when passing on a main residence to direct descendants, such as children or grandchildren.

Introduced in April 2017, it is designed to help reduce the inheritance tax burden on family homes.

What is not widely known, is that it can also be used when the property is in an overseas country such as Poland.

𝗦𝗼𝗺𝗲𝘁𝗵𝗶𝗻𝗴 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘄𝗲𝗲𝗸𝗲𝗻𝗱

You have probably been told on numerous occasions that you should have a Will.

Indeed, doing so may have been on your mental to-do list for months or years.

However, you haven’t yet gotten around to it.

This may just be due to the hustle and bustle of day-to-day expat life.

It may be that you aren’t really sure how to get started.

Nonetheless, making a Will is one of the most important things we can do.

𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝟭𝟬 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘄𝗵𝘆:

1️⃣ To make sure that your loved ones are looked after.

2️⃣ Ensure that your money goes where you want it to go.

3️⃣ If you have children and don’t nominate a guardian in your Will, the decision will be made by a court. This could mean that someone that you would not have chosen could raise your children.

4️⃣ To make sure that you don’t end up paying more tax than you need to. A Will can be a valuable tool when mitigating inheritance tax.

5️⃣ A Will reduces the chance of a dispute over your wishes.

6️⃣ Protect your partner. If you are not married or in a civil partnership, your partner won’t have an automatic right to inherit.

7️⃣ Safeguard your family home. If you have specific wishes about who inherits your home, outlining this in a Will can save the risk of dispute.

8️⃣ If you want to leave everything to your spouse.

If you have children and you die without having made a Will, then your husband or wife will not automatically inherit your whole estate.

Instead, they automatically inherit the first £270,000 of value in the estate and half of the remainder. Your children receive the other half of the remainder.

9️⃣ Leave money to charity. Once you have provided for your loved ones, you may want to leave a gift to a cause that means something to you.

1️⃣0️⃣ Peace of mind.

* 𝘛𝘩𝘦 𝘢𝘣𝘰𝘷𝘦 𝘪𝘴 𝘣𝘢𝘴𝘦𝘥 𝘰𝘯 𝘌𝘯𝘨𝘭𝘢𝘯𝘥 𝘢𝘯𝘥 𝘞𝘢𝘭𝘦𝘴 𝘭𝘢𝘸. 𝘠𝘰𝘶 𝘴𝘩𝘰𝘶𝘭𝘥 𝘢𝘭𝘴𝘰 𝘤𝘩𝘦𝘤𝘬 𝘵𝘩𝘦 𝘳𝘶𝘭𝘦𝘴 𝘸𝘪𝘵𝘩 𝘳𝘦𝘨𝘢𝘳𝘥 𝘵𝘰 𝘞𝘪𝘭𝘭𝘴 𝘢𝘯𝘥 𝘪𝘯𝘩𝘦𝘳𝘪𝘵𝘢𝘯𝘤𝘦 𝘪𝘯 𝘺𝘰𝘶𝘳 𝘤𝘶𝘳𝘳𝘦𝘯𝘵 𝘤𝘰𝘶𝘯𝘵𝘳𝘺 𝘰𝘧 𝘳𝘦𝘴𝘪𝘥𝘦𝘯𝘤𝘦.

💡 Did you know that HMRC have their own YouTube page?

They use it to explain key finance topics such as:

◾ How to report and pay Capital Gains Tax on property disposals?

◾ How to value the estate of someone who has died?

◾ How and when to pay inheritance tax?

You can find a link in the comments below.

📷 Christian Wiediger

𝗛𝗼𝘄 𝘁𝗼 𝘀𝗲𝘁 𝘂𝗽 𝘆𝗼𝘂𝗿 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝘀𝗼 𝘁𝗵𝗮𝘁 𝘆𝗼𝘂𝗿 𝗹𝗼𝘃𝗲𝗱 𝗼𝗻𝗲𝘀 𝗰𝗮𝗻 𝗮𝗰𝗰𝗲𝘀𝘀 𝘁𝗵𝗲𝗺 𝗶𝗳 𝘆𝗼𝘂’𝗿𝗲 𝗻𝗼𝘁 𝗮𝗯𝗹𝗲 𝘁𝗼

Ever wondered what would happen to your social media accounts upon death?

Here is a really useful resource (link 🔗 in the first comment below 👇🏻) that explains how to pass on your accounts upon death. Or not. Deletion is also an option.

The following accounts are currently covered:

▪️ Facebook
▪️ Google
▪️ Apple
▪️ LinkedIn
▪️ Twitter
▪️ Instagram

I am going to get cracking with it this weekend.

As an expat, managing your pensions can be a complex and often daunting proposition.

With multiple pension pots scattered across different providers, and potentially jurisdictions, you might find yourself asking, “Should I consolidate my pensions?”

This question is more common than you might think, and the answer depends on various factors specific to your circumstances.

This blog post explores the pros and cons of pension consolidation.

Should I Consolidate My Pensions? | Ross Naylor As an expat, managing your pensions can be a complex and often daunting proposition. With multiple pension pots scattered across different providers, and po ...

💡 𝗪𝗲𝗲𝗸𝗹𝘆 𝗠𝗼𝗻𝗲𝘆 𝗧𝗶𝗽: 𝗦𝗲𝘁 𝘂𝗽 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗰 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 𝘁𝗼 𝗕𝘂𝗶𝗹𝗱 𝗬𝗼𝘂𝗿 𝗪𝗲𝗮𝗹𝘁𝗵 𝗢𝘃𝗲𝗿 𝗧𝗶𝗺𝗲 💡

One of the best strategies for long-term financial stability and growth is establishing a regular savings habit.

Here's why:

🤩 𝗘𝗳𝗳𝗼𝗿𝘁𝗹𝗲𝘀𝘀 𝗦𝗮𝘃𝗶𝗻𝗴: Automatic transfers to a savings account ensure you save consistently without having to think about it. It's a "set and forget" approach that works wonders.

📈 𝗖𝗼𝗺𝗽𝗼𝘂𝗻𝗱𝗶𝗻𝗴 𝗚𝗿𝗼𝘄𝘁𝗵: Over time, small, regular contributions can accumulate significantly, thanks to the power of compound interest. It's not just about what you save, but also about how long you save for.

🧮 𝗕𝘂𝗱𝗴𝗲𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: When savings are automated, it's easier to manage your monthly budget. You adjust your spending based on what's left after saving, not the other way around.

🚨 𝗘𝗺𝗲𝗿𝗴𝗲𝗻𝗰𝘆 𝗙𝘂𝗻𝗱: Building an emergency fund is vital, especially when living abroad. Automatic savings help you build this safety net without extra stress.

💷 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝘆 𝗙𝗹𝘂𝗰𝘁𝘂𝗮𝘁𝗶𝗼𝗻𝘀: For UK expats, considering currency exchange rates is essential. Automating savings in a stable currency can be a strategic move to protect your wealth from unpredictable fluctuations.

🌐 𝗘𝘅𝗽𝗮𝘁 𝗧𝗶𝗽: Choose a savings account that suits your international lifestyle. Look for accounts with favorable interest rates, low fees, and easy access across borders.

💭 𝗧𝗵𝗼𝘂𝗴𝗵𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗗𝗮𝘆: “Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett

Are you navigating the complex UK tax regime from abroad?

I recently wrote a blog post that can help you avoid the pitfalls.

Here are the key takeaways:

1️⃣ 𝗥𝗲𝘀𝗶𝗱𝗲𝗻𝗰𝘆 𝗠𝗶𝘀𝗰𝗼𝗻𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝘀: Think that spending only 90 days in the UK exempts you from UK residency status? The Statutory Residence Test since 2013 says otherwise. It's not just about the days!

2️⃣ 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅 𝗠𝗶𝘀𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴𝘀: Temporarily leaving the UK won't exempt you from UK CGT on assets. Learn about Temporary Non-Residency rules.

3️⃣ 𝗜𝗻𝗵𝗲𝗿𝗶𝘁𝗮𝗻𝗰𝗲 𝗧𝗮𝘅 𝗔𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀: British expats remain liable for UK Inheritance Tax without a domicile shift. Get the facts on domicile vs. residence.

4️⃣ 𝗣𝗲𝗻𝘀𝗶𝗼𝗻 𝗧𝗮𝘅 𝗖𝗼𝗻𝗳𝘂𝘀𝗶𝗼𝗻: Your pension income may be taxable in your resident country, not just the UK. Know where to declare your income.

5️⃣ 𝗣𝗲𝗻𝘀𝗶𝗼𝗻 𝗖𝗼𝗺𝗺𝗲𝗻𝗰𝗲𝗺𝗲𝗻𝘁 𝗟𝘂𝗺𝗽 𝗦𝘂𝗺 (𝗣𝗖𝗟𝗦) 𝗠𝗶𝘀𝗶𝗻𝘁𝗲𝗿𝗽𝗿𝗲𝘁𝗮𝘁𝗶𝗼𝗻𝘀: While tax-free in the UK, your PCLS might be taxed in your current country of residence.

Don't let these common mistakes catch you off-guard!

Read the full post for detailed guidance and real-world tips. The link 🔗 is in the comments below 👇🏻

One of the most effective ways to mitigate UK Inheritance Tax (IHT) is by gifting.

If you make a gift during your lifetime, it becomes exempt from IHT after seven years.

However, many people are unsure how to report these lifetime gifts to the taxman (HMRC).

Here's how you do it.

🎁 𝗛𝗼𝘄 𝗱𝗼 𝗜 𝗿𝗲𝗽𝗼𝗿𝘁 𝗮 𝗹𝗶𝗳𝗲𝘁𝗶𝗺𝗲 𝗴𝗶𝗳𝘁?

Lifetime gifts are also known as PETs, or ‘potentially exempt transfers’.

One way to report them is by using a Schedule IHT403 form (link in the comments below).

You are not obliged to do this. However, if you don’t complete the form, your executors will need to do so as part of the probate process.

Therefore, it is important to keep a detailed record of your gift. Your executors and beneficiaries will thank you for it.

📁 𝗪𝗵𝗮𝘁 𝗿𝗲𝗰𝗼𝗿𝗱𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝗸𝗲𝗲𝗽?

If you make a lifetime gift, you should keep a record of the following information:

◾ The date of the gift
◾ Who received the gift
◾ The value of the gift
◾ Where the funds came from
◾ Any applicable exemptions (e.g. annual exemption)

A great place to keep these records would be in your "in case of death folder". You do have one, don't you?

𝗧𝗵𝗲𝗿𝗲 𝗶𝘀 𝗺𝗼𝗿𝗲 𝘁𝗼 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗮𝗱𝘃𝗶𝗰𝗲 𝘁𝗵𝗮𝗻 𝗷𝘂𝘀𝘁 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 📊

A 2019 report from Russell Investments (the link is in the comments below) estimates the quantifiable value of a financial adviser’s services – over and above investment returns – at a minimum of 4.4 per cent of invested funds.

According to the report, an adviser’s professional worth is broken down into five areas, with each being attributed a nominal value.

The two biggest drivers were found to be:

1️⃣ Helping clients avoid behavioural mistakes (1.9%)

2️⃣ Cost of getting it wrong (1.6%) - Given the pitfalls associated with cross-border financial planning, I suspect that for expats, this figure will be considerably higher.

So the next time you wonder how we financial advisers justify our fees, just remember that there’s a lot more to Financial Planning than picking funds.

---------------------------------------------------

Hi 👋🏻

I'm Ross, and I help expats 🌍 to get their financial ducks 🦆 in a row.

DM me if you would like to talk about:

🎯 Investment Planning.
🎯 Pensions & Retirement Planning.
🎯 Estate Planning

𝗚𝗼𝗻𝗲 𝗳𝗼𝗿 𝗮 𝗕𝘂𝗿𝘁𝗼𝗻! (𝘀𝗼𝗿𝗿𝘆 🤭) 𝗪𝗵𝗮𝘁 𝗘𝘅𝗽𝗮𝘁𝘀 𝗖𝗮𝗻 𝗟𝗲𝗮𝗿𝗻 𝗔𝗯𝗼𝘂𝘁 𝗘𝘀𝘁𝗮𝘁𝗲 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗮𝗻 𝗔𝗰𝘁𝗶𝗻𝗴 𝗟𝗲𝗴𝗲𝗻𝗱

Born in Wales, Richard Burton rose to fame as one of Britain's most celebrated stage and screen actors.

However, his life was as dramatic off-screen as it was on it.

He was known for his lavish lifestyle and two roller-coaster marriages to Elizabeth Taylor.

In 1957, he moved to Switzerland and lived there until his death in 1984, at the age of 58.

For him, living in Switzerland was motivated by tax; he famously declared that “everyone should pay taxes - except actors”.

However, Burton's plan to become a UK “non-dom”, and therefore avoid IHT on his estate, was flawed.

His argument wasn’t helped by stories that his coffin had been draped in the Welsh flag and that a copy of Dylan Thomas’s poems had been laid alongside him.

However, his real undoing was the fact that he had previously purchased burial plots for himself and Liz Taylor in Wales.

It was this that enabled HMRC to claim that he had always intended to return to the UK and was therefore deemed UK domicile.

As a result, his estate, worth about £5 million, was subjected to UK IHT, costing his heirs a hefty £2.4 million.

𝗗𝗼𝗺𝗶𝗰𝗶𝗹𝗲: 𝗠𝗼𝗿𝗲 𝗧𝗵𝗮𝗻 𝗝𝘂𝘀𝘁 𝗥𝗲𝘀𝗶𝗱𝗲𝗻𝗰𝗲

Burton's case illustrates that domicile isn't solely about where you live or where you own assets.

We all start out with a domicile and it is usually our place of birth and/or from where our parents originate.

It can be changed or contested but this is often incredibly difficult to achieve.

For Burton, despite the length of time he spent living overseas and his lack of UK assets, in the eyes of HMRC, his domicile remained the UK.

The implications for expats are significant. Even if you have lived abroad for decades, if HMRC deems you domiciled in the UK, your worldwide estate could be liable for UK IHT at 40%.

𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝗳𝗶𝘃𝗲 𝗸𝗲𝘆 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀

1️⃣ 𝗦𝗲𝗲𝗸 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲 - Navigating domicile and IHT issues requires expert advice. Misconceptions and assumptions can prove costly.

2️⃣ 𝗥𝗲𝗴𝘂𝗹𝗮𝗿 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝗔𝗿𝗲 𝗖𝗿𝘂𝗰𝗶𝗮𝗹 - Circumstances change, and so do tax laws.

3️⃣ 𝗗𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 - Keep detailed records of your assets, and be mindful of actions that could imply a tie to your country of origin, like purchasing burial plots.

4️⃣ 𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗜𝘀 𝗞𝗲𝘆 - Estate and succession plans should be adaptable to accommodate life changes and evolving tax laws.

5️⃣ 𝗕𝗲𝘄𝗮𝗿𝗲 𝗼𝗳 𝗦𝘆𝗺𝗯𝗼𝗹𝗶𝗰 𝗚𝗲𝘀𝘁𝘂𝗿𝗲𝘀 - Burton’s case shows how symbolic acts, such as a burial plot purchase or the choice of a coffin flag, can have significant legal implications. If you are thinking of having your ashes sprinkled on the turf in the stadium of your favourite football team, think twice.