About To Move Oversea?

An offshore guide to wealth management and tax planning

Montpelier are experts in advising expatriates and, importantly, we treat our authorisation in one of the world's strictest financial services countries as a bonus rather than a burden. Whatever your situation or location we will abide by the principles of best advice, ensuring that you have full investor protection at all times.

There are many reasons why you may be considering moving abroad, such as salary or professional advancement, but you will have a whole new world of investment and savings open to you that vary in their sophistication and, importantly, their performance.

We at Montpelier firmly believe that preparation is vitally important to the expatriate, especially at three important stages: before leaving the UK , while away, and prior to returning.

• Things to consider before you accept a job abroad
• Offshore Tax Planning
• Retirement planning
• Education Fee Planning
• Estate Planning & Trusts
• Life Cover
• Health Insurance
• Medical Insurance
• Savings & Investments
• Who to notify before you leave your home country
• What to do before returning to your home country
• Offshore Investment

All of the latter have different importance depending on your length of stay abroad, your age and marital status. However, one thing that is certain is that, if you plan now, the benefits of higher disposable income can have a great effect on your future, and your family's.

Things to consider before you accept a job abroad

Is the offer really worth it? Check out message boards/blogs, the www.telegraph.co.uk is a great site for getting feedback from other expatriates.

Important questions to ask:

• Will your employer meet the cost of travel from your home country?
• What holidays will you get?
• Will your employer pay for travel back home for your family as well as you?
• What is the situation with accommodation. Will I get an allowance?
• Who pays for shipping your furniture and belongings?
• Do you get a car allowance?
• Is there medical insurance?
• What currency or currencies are you going to be paid in?
• What will happen if the currency is devalued? Can I plan for this?
• Are your terms of employment clearly agreed in writing?
• Where do you stand in relation to out-of-pocket expenses such as any personal pension contributions?
• What benefits are you missing out on?
• What bonuses did you get now, that will disappear?
• Who will pay your tax bill?
• Should you pay voluntary National Insurance contributions to maintain UK state benefits?
• If you have children, where will they be schooled?
• Will you need to consider University Fee Planning?

Offshore Tax Planning

• One of the attractions of working abroad is being able to forget about your home country tax. However, before you forget about it, you need to seek expert advice from a Montpelier consultant who is familiar with the tax issues arising for people moving abroad.
• Double taxation agreements mean that you should not be taxed on the same income twice. You need to ensure that you are not chased and taxed by both countries.
• Rules of residency should ensure that you do not pay tax in each country but the timing of your departure is important in this respect. Again, a Montpelier tax consultant will advise you.
• From a UK perspective moving abroad does not usually exempt a UK expatriate from UK inheritance tax, and overseas possessions are not exempted from this IHT net. This is a vitally important area for those retiring abroad – please seek advice from your Montpelier adviser as to the estate planning laws of your home country.
• As Independent Financial Advisers, Montpelier work closely with expatriate tax specialists and will provide details of a convenient firm, on request.

Retirement Planning

• If you are in a pension scheme and are still working for your current employer prior to moving abroad, you should look into maximising the opportunities offered by offshore vehicles.
• Will you will be excluded from your home country pension schemes, if a non-resident. Your exact earnings/tax situation is vital here – Montpelier can help.
• If you have pension scheme, and/or are working for a company abroad with no pension scheme, you will need to look into alternative savings/pension vehicles to build your retirement fund.

School Fees Planning

• Does your destination offer suitable schooling facilities, and if so, who will pay?
• If your child is to say in the UK , whom will he/she stay with and how much will the schooling cost? You should fully investigate the cost of boarding school as prices vary considerably.
• The same considerations apply to those children who are too young for schooling at present. Montpelier can help you with a range of school fees plans to help meet the ever-increasing cost of good private education.

Inheritance Tax Planning

It is a common misconception that UK Inheritance Tax (IHT) considerations can be forgotten when moving abroad.

UK IHT applies to all world-wide assets of such citizens as is the case with most countries

IHT mitigation measures are available, but professional advice is essential. Montpelier can assist you with such planning.

Life Cover

• This can be very difficult to obtain having gone abroad, so you should seek advice before leaving your home country.
• Ensure that existing provision is valid in your chosen destination and occupation.
• Montpelier work with a number of specialist insurers in this field, and can usually obtain the cover you need.

Health Insurance

• What would happen to your income if you were unable to work?
• More and more people are realising the benefits offered by insuring their income from the effects of serious illness or disability.
• Critical Illness Insurance pays out a tax free amount after diagnosis of a "dread disease" such as cancer, or heart attack.
• Such plans are very sensitive to occupation and country of residence.
• Existing plans should be reviewed, and a lack of cover should be addressed.

Medical Insurance

• Medical Insurance provides for the cost of medical fees and hospital treatment. Expatriates should ensure they have full repatriation insurance - imagine the cost of having to be flown home by air ambulance.
• As an example most UK plans specifically exclude treatment abroad, so you must ensure that you have the right plan and the details are checked with your Montpelier adviser.
• Specialist insurers are available and willing to consider covering you world-wide. Montpelier work with such companies.

Savings and Investments

•  Why should I invest offshore?
• Where should you invest?
• What sort of investment vehicles are available?
• What are the potential risks?

Property

If you currently own property, you may be considering one of the following:

Selling it - if so, are there any tax implications?

Keeping it - if you still have a mortgage for example a U.K. citizen not resident in the U.K. is still entitled to claim personal allowances, which can be offset against any liability to U.K. tax. Other countries have similar rules, please speak with your Montpelier adviser for clarity.

Letting it - you should consider using a lettings agency to take care of everything while you are away. Speak to a few and check their charges. Once again, there are taxation implications. To consider.

Who should you notify before you leave?

Before you go you will need to notify various utility providers, banks, tax offices, Social Security and any insurance or pension providers you may have policies with (to update your contact details). Make sure you have cancelled subscriptions or standing orders/Direct debits for products or services that will not be needed anymore.

Preparing to Repatriate

• One of the most vital occasions for tax and investment planning is in the months before returning to your home country. Without careful planning any capital gains can be seriously affected by unforeseen tax implications. Proper planning is strongly advised.
• Whatever the situation, advice is essential as there are many factors that need to be taken into account, such as your time spent abroad and your portfolio of investments or, as in some cases, the length of notice required on deposit accounts.
  

Offshore Investment

Montpelier are experts in providing independent advice to expatriates and, as such, are able to advise on the best course of action for your particular circumstances.