Pre-Departure Financial Checklist: Everything to Do Before Moving Abroad

The months before moving abroad are typically dominated by logistics — finding accommodation, enrolling children in schools, organising shipping, learning about the destination country. Financial planning tends to fall to the bottom of the list or is addressed reactively after arrival.

This is a costly mistake. Many of the most valuable financial planning actions available to a departing UK resident must be taken before departure — once you have become non-resident, options close, timelines reset, and opportunities are lost.

This checklist covers the key steps in the sequence they are best addressed.

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Six Months Before Departure

1. Understand Your UK Tax Residence Departure

The UK Statutory Residence Test (SRT) will determine the date from which you become non-resident. Work through the test carefully:

• How many days do you plan to spend in the UK going forward?
• Do you have UK ties (accommodation, employment, family) that affect the day count threshold?
• Will you be eligible for split-year treatment in the year of departure?

Knowing your exit date from UK tax residence is the foundation for everything else. Consider engaging a tax adviser with SRT expertise to confirm your analysis.

2. Capital Gains Planning: Crystallise Before or After Departure?

Once you become non-resident, gains on most assets (except UK property) are no longer subject to UK CGT. If you have assets standing at a significant gain, the question is: is it better to dispose of them before or after departure?

Before departure (as UK resident):

• Gain is subject to UK CGT at 18% or 24%
• The annual CGT exemption (£3,000) is available
• Clean outcome — no trailing UK CGT liability

After departure (as non-resident):

• No UK CGT on most assets (shares, overseas property, etc.)
• Temporary non-residence rules: if you return to the UK within five complete tax years, gains crystallised while non-resident on assets owned before departure may be "clawed back" and taxed on your return

For assets you intend to sell within the next 1–3 years: consider whether it is better to delay the sale until after establishing non-residence (and then stay away for 5+ years) or to sell before departure and absorb the CGT.

UK residential property: no exemption for non-residents — CGT applies regardless of residence status since April 2015.

3. Review Your Pension

Before leaving the UK, review all pension arrangements:

Defined contribution (DC) pensions: how are they invested? Are investment choices appropriate for the longer-term horizon? What death benefit nominations are in place?

Defined benefit (DB) pensions: what are the options — deferred, commuted to transfer value (CETV)? The decision to transfer a DB pension must be made carefully; for larger CETVs (over £30,000), regulated financial advice is mandatory.

QROPS consideration: a Qualifying Recognised Overseas Pension Scheme (QROPS) allows transfer of a UK pension abroad. A 25% Overseas Transfer Charge (OTC) applies in many cases. The exemptions from the OTC narrowed further from 30 October 2024, when the EEA and Gibraltar exemption was abolished — only the same-country-of-residence exemption remains. The circumstances where QROPS is beneficial are therefore narrower than before. Seek specific advice before transferring.

State pension: check your National Insurance record (available via HMRC/NI checking service) and consider making voluntary Class 2 NI contributions to fill gaps in your state pension entitlement. Voluntary contributions from abroad are often very cost-effective.

4. ISA Review

You cannot contribute to an existing ISA or open a new ISA while non-UK resident. Your existing ISA remains open and shelters existing investments from UK tax.

Before departure: maximise your ISA contribution for the current tax year. If you are departing in October, for example, you have used only six months of the tax year — consider using the remaining allowance before you go.

Review holdings within the ISA: consider whether the assets held are appropriate for a non-resident investor. Some overseas-listed securities or alternative investments may have complications when held in a UK ISA.

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Three Months Before Departure

5. HMRC Notification (P85)

File HMRC form P85 to notify HMRC of your departure and claim any tax refund owed (if you have overpaid through PAYE). The P85 can be filed online through the Government Gateway.

The P85 triggers HMRC's non-residence records, which affects your PAYE coding for UK-source income (such as UK pension income) and your self-assessment obligations going forward.

6. Update Your Will

Your will should be reviewed before every significant life event — moving country is one of the most significant.

Jurisdiction of the will: a will written under English law may not be effective or optimal for overseas assets. Consider whether jurisdiction-specific wills are needed (a French will for French assets, for example).

Executors: are your executors UK-based? For a non-resident deceased with overseas assets, executors need authority in multiple jurisdictions — specialist cross-border estate planning is worth commissioning.

Governing law elections: if moving to an EU country, consider including an Article 22 election (see the international probate article) to apply UK law to your succession rather than the law of your country of habitual residence.

Beneficiary review: confirm that beneficiary designations on insurance policies, pensions, and other plans are consistent with the will's intentions and have been updated.

7. Lasting Power of Attorney

If you do not have UK Lasting Powers of Attorney (LPAs) — one for Property and Financial Affairs, one for Health and Welfare — register them before departure.

An LPA for Property and Financial Affairs enables a trusted person to manage your UK financial affairs (bank accounts, property, investments) if you lose capacity or are simply unavailable due to your location.

From overseas, it is very difficult to register a new LPA — it requires visiting a UK solicitor or arranging complex overseas execution. The registration process also takes several months. Do it before you leave.

Overseas equivalent: research whether the destination country requires its own capacity management document (e.g., a Power of Attorney under local law). In some countries, a UK LPA is recognised; in others, a local instrument is required.

8. UK Bank Accounts

Most UK high street banks will allow you to keep existing accounts as a non-resident, but some are reducing their services to non-resident customers. Review the position with each bank — if restrictions apply, it may be better to maintain accounts through a private bank or international bank before departure rather than being forced to act from abroad.

International banking alternatives: banks including HSBC International, Citibank International Private Client, and specialist expat banking providers offer accounts designed for internationally mobile clients.

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One Month Before Departure

9. National Insurance Contributions

UK National Insurance (NI) contributions build entitlement to the UK State Pension. The full new State Pension requires 35 qualifying years; the minimum for any pension is 10 years.

For expats who will be non-resident for extended periods, making voluntary NI contributions (Class 2 at a very low rate for self-employed overseas; Class 3 at a higher rate) can be highly cost-effective — buying an additional year of State Pension for a relatively modest lump sum that will be repaid many times over through the pension.

Action before departure: check your NI record, calculate how many qualifying years you have, and consider topping up immediately if gaps exist. The deadline for topping up historical years is subject to changing HMRC rules.

10. Currency and FX Planning

You will need access to foreign currency at your destination. Establish accounts and FX facilities before departure:

• A multi-currency bank account or FX service (Wise, Revolut, HSBC international)
• Consider whether to transfer lump sums when exchange rates are favourable versus timing the market
• Set up regular payment facilities for ongoing expenses (rent, school fees, household costs in the new country)

11. Tax in the Destination Country

Understand the tax position you are moving into, not just the one you are leaving. Key questions for the destination country:

• How is UK-source income (pension, property rental, dividends) taxed?
• What is the capital gains tax treatment?
• Is there wealth tax (applicable in several European countries)?
• Are there inheritance/estate taxes?
• What are the reporting obligations for overseas assets?

The double taxation treaty between the UK and the destination country is the key starting document. Most commonly used UK treaties are with France, Spain, Germany, the UAE, Thailand, Cyprus, Australia, and the US.

12. Health Insurance

UK National Health Service (NHS) coverage ends (for non-emergency treatment) once you become non-resident. Ensure health insurance coverage is in place from day one of departure.

Options include:

• International Private Medical Insurance (IPMI)
• National health system registration in the destination country
• EHIC/GHIC cards for travel within Europe (these cover emergency treatment only)

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After Arrival

13. Tax Registration in the New Country

Register with the local tax authority in your new country of residence. Requirements vary but typically include registering a fiscal address and obtaining a tax identification number (equivalent to the UK's UTR).

14. First UK Self-Assessment Return

The first self-assessment return after departure (for the year of departure) is typically complex — it covers split-year treatment, the final year of UK-source income, and potentially capital gains. Engage a tax adviser with cross-border experience to prepare it correctly.

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How Global Investments Can Help

Global Investments provides comprehensive pre-departure financial planning for internationally mobile individuals and families. We coordinate across the full checklist — pension review, tax planning, ISA strategy, currency structuring, insurance, and will reviews — ensuring that the financial aspects of a move abroad are handled systematically rather than haphazardly. For clients moving to specific countries, we can facilitate introductions to local advisers and help build a coherent multi-jurisdiction financial plan.

This article provides general guidance. Tax rules, allowances, and procedures change frequently. Your individual circumstances will affect which actions are most relevant and how they should be implemented. Always seek qualified professional advice before making significant financial decisions in connection with moving abroad.