Moving abroad is one of life's more complex logistical undertakings. The financial side of it is often underestimated — partly because the consequences of getting things wrong are deferred. You may not discover that your UK life insurance lapses on emigration for years. You may not realise your will is invalid in your new country until you need it. You may not notice the tax exposure created by your UK pension arrangements until a large bill arrives.
This checklist covers the ten financial tasks that are most commonly neglected, most consequential when neglected, and most straightforward to address before you leave.
1. Notify HMRC of your departure from the UK
This sounds obvious but is routinely missed. If you are leaving the UK permanently (or long-term), you should:
- Submit form P85 (Leaving the UK — Getting Your Tax Right) to HMRC to notify them of your departure and obtain any tax refund owed.
- Confirm the date you ceased to be UK tax resident under the Statutory Residence Test (SRT).
- Close or adjust any PAYE employment that continues.
Failing to formally sever UK tax residency can result in ongoing UK tax obligations on worldwide income that you assumed had ended. The SRT has specific rules on how many days you can spend in the UK after leaving without re-establishing UK residency — understand these before you travel.
2. Understand your new country's tax obligations
Every country treats new arrivals differently. Some impose worldwide taxation from day one of residency. Some have preferential regimes for new arrivals (Cyprus's 60-day rule, Portugal's former NHR, Malta's Global Residence Programme, UAE's zero income tax). Some have specific source rules for pension income, rental income or investment gains.
Before you arrive, get tax advice in your destination country that covers:
- When and how you become tax resident
- What income and gains are taxable and at what rates
- Whether there are any new-arrival exemptions or preferential regimes
- How your existing UK pension, investments, and property interact with the local tax system
This is not optional — it is fundamental to understanding the financial implications of your move.
3. Review your pension arrangements
Moving abroad has several implications for pensions:
UK workplace pensions and SIPPs: These do not need to be moved immediately, but you should understand how distributions will be taxed in your new country of residence. Some double tax treaties provide source-country (UK) taxing rights; others give residence-country rights. The difference can be substantial.
QROPS consideration: Depending on your destination, consolidating UK pensions into a Qualifying Recognised Overseas Pension Scheme may be advantageous — or may trigger an Overseas Transfer Charge. This requires specialist analysis before any transfer.
State Pension: Check whether your destination country is on the UK's frozen pension list (see our article on frozen pensions). If you have NIC gaps, consider making voluntary contributions before you leave.
New employer pension: If you are moving for work, understand the new country's pension system and whether contributions will give you portable rights.
4. Review your protection — it may not travel
UK life assurance, critical illness and income protection policies vary in whether they remain valid after emigration. Some policies contain exclusion clauses that reduce or eliminate cover if you live outside the UK or EEA. Some will continue to pay out wherever you are; others will lapse.
Check every policy you hold against the emigration/residency terms. If cover lapses, arrange international replacement before you leave while you are still in good health. International life assurance from offshore providers (Isle of Man, Guernsey, Bermuda, Cayman) can be structured to follow you across jurisdictions for your lifetime.
Income protection is particularly important if you are self-employed or moving to a country without social security equivalent cover.
5. Update your will — and check it is valid abroad
A will made in the UK may not be automatically valid or recognised in your new country. Many countries have forced heirship rules (France, Spain, several Middle Eastern countries) that limit testamentary freedom and require a portion of the estate to pass to direct descendants regardless of the will's instructions.
You should:
- Take local legal advice in your destination country on succession law
- Consider whether a separate local will is needed alongside your UK will
- Ensure your UK will remains valid for UK-situs assets (property, bank accounts, pensions)
- Review beneficiary nominations on pensions and life policies — these pass outside the will
Also review Lasting Power of Attorney arrangements. A UK LPA is not recognised in most other jurisdictions. A local equivalent should be put in place.
6. Review your banking arrangements
UK banks routinely close the accounts of non-resident customers, particularly in the wake of anti-money laundering compliance reviews. Do not assume your UK current account and savings accounts will remain operational after you leave.
Before you go:
- Set up an offshore bank account in a stable jurisdiction (Isle of Man, Gibraltar, Channel Islands, Cyprus, Singapore) that is designed for non-residents
- Maintain a UK account if possible for residual UK income (rental, pension, dividends) — but do not rely on it
- Ensure you can receive and send money internationally without punitive fees
7. Review investment account residency rules
Offshore portfolio accounts typically accommodate international clients without issue. UK-domiciled ISAs are a different matter: you cannot make new contributions to a UK ISA once you become non-UK resident, but existing ISAs can continue to hold investments. Understand what you have, what it costs, and whether it remains appropriate as your circumstances change.
UK investment accounts with retail platforms may also restrict services for non-UK residents — check before you leave whether your account will continue to be accessible.
8. Consider currency and exchange rate exposure
If you have UK assets (property, investments, pension) but will be living and spending in another currency, you have an inherent currency exposure. A sterling depreciation reduces the real value of your UK assets in local purchasing power terms.
For those with specific future liabilities in local currency — university fees, property purchase, retirement income — consider whether any portion of your assets should be currency-matched.
9. Review your existing investments for new tax implications
Investments that are tax-efficient in the UK may not be in your destination country. UK ISAs, for example, are not recognised as tax-sheltered in most other countries — your new country of residence will typically tax ISA income and gains as normal. Venture Capital Trusts and EIS investments may also have different treatment.
Before you leave, get advice on the post-emigration tax treatment of every significant investment holding you own.
10. Review your estate planning with international eyes
The combination of UK IHT exposure, potential local succession taxes in your destination country, and the interaction between the two creates a complex picture that many expats never fully map out. Points to cover:
- Do you remain within the UK IHT net? (Under the new long-term resident rules, leaving the UK does not immediately remove IHT exposure — there is now a tail period.)
- Does your destination country have its own inheritance or estate tax?
- Are your pension beneficiary nominations current and appropriate?
- Are trusts, family investment structures or other arrangements still appropriate given the move?
Start early
The ideal time to work through this list is six to twelve months before your departure — not the week before. Many of the tasks (replacing protection, restructuring investments, legal documents) take time to implement.
How Global Investments can help
We advise expats and internationally mobile individuals on every aspect of this checklist — from tax residency analysis and pension review to protection replacement and estate planning. Our team has 32 years of experience navigating the international financial landscape.
Contact us to arrange a pre-departure financial review or to discuss your situation as an existing expat.
This checklist is for general information purposes and does not constitute personal financial, tax or legal advice. Rules differ by jurisdiction and individual circumstances. Seek qualified advice before making any financial decisions.
This article is for general information only and does not constitute financial, legal or tax advice. Rules, prices and regulations change; verify current requirements with a qualified adviser before acting.