Tax planning when moving between countries

For example, individuals moving to the US or UK who do not take pre-arrival advice may find that not only do they owe income or capital gains tax on all of their worldwide investment assets when sold (including those located outside of the jurisdiction of residence), but upon their death they also may well owe estate or inheritance tax, based on the value of all of their worldwide assets. 

This can easily decimate a family's finances when they discover to their dismay that upon the death of the matriarch or patriarch, the family will be subject to taxes that can be 40% or even 50% of the family's entire fortune.
 

Understanding the global tax issues is vital to your tax planning

As a tax planning law firm with a dedicated team of lawyers who are skilled in this area, we can help ensure that you structure your affairs to mitigate the tax inefficiencies arising for today's mobile population.

For example, if you live in the UK but do not intend to remain there permanently, you may be eligible to pay tax on the remittance basis. This means that you do not have to pay tax on your foreign-source income and gains, as long as these are not remitted into the UK.

If moving to the US, placing one's assets into an insurance or annuity policy before arrival can eliminate income tax on income and gains arising from the policy. If the policy is owned by a trust, the value can also be shielded from the individual's taxable estate at death.

If moving to Hong Kong, participation in Share Award Schemes or other retirement vehicles may be helpful to reduce both current tax obligations and reporting burdens.

We advise many people in this position, and our extensive tax planning services enable us to achieve optimal efficiency and identify the most efficient wealth-holding structures for your circumstances.

Our tax planning solicitors also offer guidance in regard to the remittance basis, on how to use it without falling foul of the rules on, for example, what constitutes residence and remittance.