Moving overseas can change the way your wealth needs to be managed
International relocation can affect far more than where you live.
A move from the UK may change how investments are taxed, which financial products remain available, how assets are held and which professional advisers need to be involved.
For individuals with investments, business interests or substantial assets, these issues should ideally be considered before the move takes place.
Knightsbridge helps clients identify the wealth and investment considerations arising from an international relocation and coordinate with appropriately authorised financial, tax and legal professionals where specialist advice is required.
Understanding your financial position before you move
A relocation review may need to consider a wide range of assets, including:
- investment portfolios;
- shares and funds;
- pensions;
- ISAs;
- cash deposits;
- UK and overseas property;
- company shares;
- business interests;
- trusts or family structures;
- overseas investments; and
- other financial assets.
The purpose is not simply to create a list.
It is to understand whether a change in residence affects how those assets can be held, managed, taxed or transferred.
Investments after leaving the UK
Moving overseas can affect access to financial products and investment platforms. Some providers may apply different rules once an individual is no longer UK resident.
Questions may arise around:
- whether existing accounts can remain open;
- whether new contributions can be made;
- access to particular investment products;
- the tax treatment of gains and income;
- overseas reporting obligations;
- currency exposure; and
- whether assets need to be transferred or restructured.
The position can vary significantly depending on the country you move to.
Pensions and long-term assets
Pensions are often a significant part of international wealth planning.
A move overseas may raise questions about:
- continuing contributions;
- drawing pension income;
- overseas taxation;
- currency;
- pension transfers;
- future residence; and
- long-term estate planning.
These decisions can have substantial financial consequences.
Where pension or investment advice falls within regulated financial advice, it should be provided by an appropriately authorised adviser.
Business owners and entrepreneurs
Business owners often have a more complex financial position.
International relocation may affect:
- personal shareholdings;
- salary and dividends;
- company ownership;
- business succession;
- potential disposals;
- establishment of overseas companies;
- investment into new businesses; and
- the interaction between personal and corporate assets.
The immigration, tax and wealth implications should therefore be considered together.
For entrepreneurs and founders, the timing of a move can also be important where a business is being sold, restructured or expanded internationally.
Property and wealth planning
Property can form a substantial part of an individual’s overall wealth.
A client moving overseas may simultaneously be considering whether to:
- sell a UK property;
- retain and rent it;
- purchase a new home overseas;
- acquire investment property; or
- hold property in more than one jurisdiction.
Those decisions can interact with tax residence, capital gains, rental income, inheritance planning and investment strategy.
Property should therefore be considered alongside the wider financial position rather than in isolation.
Regulated investment advice
There is an important distinction between helping coordinate an international relocation and providing regulated investment advice.
Advice recommending whether a person should buy, sell or hold particular regulated investments may require appropriate regulatory authorisation.
Where this type of advice is required, Knightsbridge can coordinate with suitably authorised professionals.
Our role is to help identify when specialist advice is needed and ensure that it fits within the wider relocation strategy.
International banking and financial arrangements
Relocating overseas can also affect everyday financial arrangements.
Depending on the destination and circumstances, questions may arise around:
- maintaining UK bank accounts;
- opening overseas accounts;
- international payments;
- transferring funds;
- foreign exchange;
- proof of source of funds;
- private banking; and
- financial documentation required for property or residence applications.
These practical issues can become particularly important where a move involves substantial property purchases, investments or business activity.
Coordinating several professional advisers
International relocation can result in several professionals becoming involved in the same matter.
These may include:
- immigration advisers;
- accountants;
- tax advisers;
- financial advisers;
- wealth managers;
- private bankers;
- lawyers;
- property professionals; and
- corporate advisers.
Without coordination, each professional may only see one part of the position.
Our role is to help identify how the different areas interact and keep the wider relocation objective clear.
How Knightsbridge helps
We can help you:
Map your position
Identify the assets, investments and business interests that may be affected by your move.
Identify potential issues
Establish which matters may require tax, legal or regulated financial advice.
Coordinate professional advisers
Bring the appropriate specialists into the process where required.
Consider timing
Identify matters that may need attention before your residence changes or significant transactions take place.
Connect the different areas
Ensure immigration, tax, property, business and wealth considerations are understood as part of the same relocation.
A coordinated approach to international wealth
For clients with investments, business interests or substantial assets, moving overseas can involve decisions with long-term consequences.
The earlier those issues are identified, the easier it is to obtain the right professional advice before decisions become difficult to reverse.
If you are planning an international move, we can help identify the wealth and investment considerations that should form part of your wider relocation strategy.
