Sort out your finances before you move abroad if you want to avoid running into trouble with the tax...
Sort out your finances before you move abroad if you want to avoid running into trouble with the taxman, urges Halifax.
At the moment, the UK has a 14m strong expat community, and that figure seems to be rising as the Office for National Statistics estimates 300,000 Britons move abroad to work each year.
But people who consider living and working abroad need to consider what they will do with their home and other assets before they leave, Halifax says.
So it is essential that any client considering the move overseas should speak to a knowledgeable tax adviser before the real planning begins, says Halifax.
A person working abroad for more than a full tax year - while not returning back to the UK for more than an average of 91 days each tax year - will normally be classified a 'non resident'.
But any income earned in the UK will still be taxed in the UK.
Another thing to think about, Halifax adds, is that under UK tax rules only your main home is exempted from Capital Gains tax.
A returning expat could therefore end up being liable to tax on any profit made on a property when it is sold - even if it is based overseas.
This could be avoided by buying and selling the new house during the period a person is regarded a non-resident by the tax-man, Halifax says.
Halifax's head of European Operations Ian Smith says it is vital for most people to sort out their finances before moving abroad as well as check financial arrangements just before returning back home to avoid extra tax liabilities.
"If you want to buy a home in the country where you are going to be working you need to work out how you're going to finance it."
"You can raise a new loan against your home in the UK but this depends on how much it is worth and your existing mortgage. But it's also worth looking at what is available in the country you're going to because rates in the UK are generally higher than they are in the Eurozone", he adds.
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