Preparing Financially for a Move Abroad: The Complete Pre-Departure Checklist

Moving abroad is exciting and, often, financially complex. In the rush to arrange accommodation, sort visas and say farewells, financial planning is frequently neglected until after arrival — by which point some decisions that were straightforward before departure have become much harder, more expensive, or simply impossible.

This is the financial checklist every British national should work through before leaving the UK. Some items have hard deadlines; others simply become more difficult to sort from abroad. Work through it systematically, and you will arrive in your new country with your financial affairs properly ordered.

1. Notify HMRC — file a P85

The P85 form (or the online equivalent at gov.uk/tax-if-you-leave-the-uk) tells HMRC that you are leaving the UK and enables them to:

• Issue any tax refund due for the year of departure (you may have overpaid PAYE in the year you leave if you worked for only part of the year)
• Update your records to non-UK-resident status
• Confirm whether you need to file a UK self-assessment return going forward

Filing the P85 does not automatically make you non-UK-resident for tax purposes — that is determined by the Statutory Residence Test. But it starts the administrative process and can trigger a useful tax refund.

When: As soon as possible after departure — or in advance, if departure date is known.

2. Establish your UK tax residency status

Before leaving, get a clear understanding of your UK tax residency status under the Statutory Residence Test (SRT). Key questions:

• Will you become non-UK-resident in the year of departure?
• How many days can you spend in the UK without becoming UK-resident again?
• Do you have UK ties (home, spouse, work, 90-day tie) that affect the day count?

This analysis determines whether UK income and gains in the year of departure are taxed fully or only partially, and informs your behaviour for future years.

When: At least 3–6 months before departure.

3. Timing of capital gains — plan before you leave

Once you become non-UK-resident, you can generally realise non-UK-property gains free of UK CGT (though some countries' domestic rules may tax them). For most UK assets (other than UK property, which is taxable regardless of residence), departure can trigger a CGT planning opportunity.

Before departure, consider:

• Are there unrealised gains in your UK investment portfolio? Should you crystallise them while still UK-resident (using the annual CGT exempt amount, or at a lower rate) or defer until non-resident?
• Are there losses to carry forward from prior years to offset?
• Does your new country of residence provide a "step-up" in base cost for assets acquired before arrival?

The answer depends on the specific tax rates in both the UK and your destination country. Take advice — but do it before you leave, not after.

When: 3–6 months before departure.

4. Update your will — and understand intestacy in the new country

A UK will covers UK assets under English law. It may not work for assets in other jurisdictions, and in many civil law countries (France, Spain, Germany, Italy), forced heirship rules mean a foreign will cannot override the local succession rules.

Before departure:

• Review your existing UK will with a solicitor
• Consider whether you need a separate will in the country you are moving to (particularly if acquiring property there)
• EU Succession Regulation 650/2012 allows EU residents to elect for the law of their nationality — UK nationals in EU countries may be able to specify that English law governs their succession
• Consider cross-border estate planning if you will have assets in multiple jurisdictions

When: Before departure if possible; as soon as settled after arrival otherwise.

5. Update Lasting Powers of Attorney (LPA)

A UK Lasting Power of Attorney authorises a named person to act on your behalf in financial or health matters if you lose capacity. LPAs are registered in England and Wales (or Scotland/Northern Ireland separately) and may not be recognised abroad.

Considerations:

• Many countries have their own PoA equivalents that must be drawn up locally
• You may need a UK LPA for UK affairs and a local PoA for affairs in your new country
• If you already have a UK LPA, check whether it extends to overseas assets and whether it is recognised in your destination country

When: As part of your pre-departure estate planning review.

6. Review all insurance policies

Life assurance and term cover: Many UK life policies have residency conditions. Check whether your policy remains valid if you are resident abroad. Obtain confirmation in writing from the insurer. If cover would lapse or be voided, arrange replacement cover through an international insurer before departure.

Income protection: Most UK income protection policies pay out for UK-based incapacity. Living abroad may void the policy. International income protection products exist and should be considered.

Critical illness: Review residency conditions — some policies exclude claims arising from treatment received outside the UK.

Health insurance: UK NHS cover is lost on establishing overseas residence (except for returning visits — emergency treatment is covered but routine care is not). Arrange private international health insurance before departure. Cover must be in place on day one of residence.

Home and contents (UK property): If leaving a UK property empty for extended periods, check whether standard home insurance covers vacancy. Most standard policies do not cover homes vacant for more than 30–60 days.

When: Minimum 4 weeks before departure; earlier for life and health cover.

7. ISA and NS&I — understand the rules

ISA: You can keep your existing ISA open and the UK will not tax income or gains within it. However:

• You cannot make further ISA contributions once non-UK-resident
• Your new country of residence may tax ISA income and gains — check local rules
• Report ISA income and gains on your local tax return if required by the local authority

NS&I (National Savings and Investments): Premium Bonds and most NS&I accounts are not available to non-UK-residents. NS&I will require you to close or encash most accounts when you become non-resident. Do this before departure or at the earliest opportunity.

When: Check ISA position before departure; close NS&I accounts on or shortly after departure.

8. Sort your UK banking arrangements

Maintaining at least one UK bank account after departure is strongly recommended. UK accounts are increasingly difficult to open from abroad as banks have tightened KYC and anti-money-laundering procedures.

Before departure:

• Ensure you have a bank account that will permit non-resident customers (not all UK banks do)
• Consider internet banking access and international payment capabilities
• Notify your bank of your new address and residency status — many accounts have terms requiring this
• Set up international transfers: your UK account will be used to receive UK income (rental income, pension) and send money abroad

Many British expats also use multi-currency accounts (Wise, Revolut Business, Starling international) to reduce currency conversion costs.

When: Before departure.

9. Pension decisions before leaving

UK employer pension: If you are ceasing UK employment, consider:

• Consolidating small deferred pension pots into a SIPP for easier management
• Reviewing whether to continue contributions after departure (up to £3,600 gross per year even without UK earnings, for the first five years of non-residence)
• Reviewing nominated beneficiaries on all pension contracts

State Pension: Check your NI record at gov.uk/check-state-pension. Calculate whether filling gaps in your NI record is cost-effective before departure (voluntary Class 2 contributions, if available, are very cost-effective).

DB pension: If leaving a defined benefit scheme, take regulated advice on whether transfer to a SIPP or QROPS is appropriate. A transfer is irreversible — take time and take advice.

When: 3–6 months before departure for complex decisions; before departure for administrative items.

10. CGT timing revisited — currency planning

If you will have ongoing income from UK sources (rental, pension, investments), consider the currency conversion strategy:

• Sterling weakness has historically affected expats significantly
• Establish a currency account or regular conversion facility before departure
• Consider forward contracts for large known conversions (rent from a UK property paid in GBP, to be spent in euros, for example)

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How Global Investments can help

Preparing financially for a move abroad involves a dozen interdependent decisions. We work with clients at the planning stage — before departure — to ensure the right structures are in place and the right decisions are made in the right order.

Contact us to arrange a pre-departure financial review.

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Tax rules, banking regulations and product terms change. This checklist reflects UK rules as of June 2026. Individual circumstances vary — always obtain professional advice before making significant financial decisions.