Client leaving the UK
Leaving the UK can create important planning opportunities, but the sequence matters.
A client may need to consider tax residence, pensions, ISAs, investments, property, beneficiary arrangements, future retirement plans and the possibility of returning to the UK later.
Josh Clancey works alongside tax advisers, lawyers, accountants and other professionals where a client's departure from the UK creates wider financial-planning decisions before and after the move.
The planning often starts before departure
The first step is usually to establish when the client will cease to be UK resident under the Statutory Residence Test.
That is a tax-advice question.
Once the expected residence position is clear, the client's financial arrangements can be reviewed in context.
Areas that may need attention include:
- UK pensions
- ISAs
- general investment accounts
- property
- business interests
- cash
- protection
- beneficiary arrangements
- future retirement income
- currencies
- the destination country
- the possibility of returning to the UK
For clients who expect to return within a relatively short period, the temporary non-residence rules can be particularly important.
Common planning areas when a client leaves the UK
Tax residence
The date the client physically leaves the UK does not automatically determine when UK tax residence ends.
The Statutory Residence Test and potential split-year treatment should be considered.
UK pensions
A client can usually retain UK pension arrangements after becoming non-resident, but access, transfers, beneficiary planning and future retirement income may need separate review.
UK ISAs
Existing ISAs can generally remain in place after a client becomes non-resident, but new subscriptions are usually restricted while the client is non-resident.
Investments
An investment portfolio designed for a UK resident may not remain suitable once the client moves abroad.
Tax treatment, account access, platform restrictions and future currency needs may all change.
Inheritance tax
Leaving the UK does not necessarily remove UK inheritance-tax exposure immediately.
The post-2025 residence-based regime can continue to apply to worldwide assets for a period after departure depending on the client's residence history.
A future return to the UK
If the client expects to return, decisions made while non-resident should be considered in the context of eventual UK residence.
Questions to ask before departure
When will the client actually become non-UK resident?
The answer should be determined under the Statutory Residence Test.
Does split-year treatment apply?
The tax adviser should establish whether the year of departure can be divided into UK and overseas parts.
What will happen to the client's existing ISAs?
Existing accounts can normally remain open, but contribution rules change once the client becomes non-resident.
What pensions does the client hold?
The client may have defined benefit, defined contribution or personal pension arrangements that need to be reviewed in an international context.
What investments can remain in place?
Platforms and providers may apply different servicing rules once residence changes.
Is the client likely to return within five years?
Temporary non-residence rules may be relevant to certain income and gains realised while abroad.
How long has the client been UK resident?
This can affect the inheritance-tax position after departure under the long-term residence rules.
Useful resources for advisers working with clients leaving the UK
The Professional Adviser's Guide to British Clients Leaving the UK
A broad guide to the main financial-planning issues that may need to be reviewed before and after departure.
Client Leaving the UK Checklist
A practical checklist covering residence, pensions, investments, ISAs, property and other financial arrangements.
The UK Statutory Residence Test for Internationally Mobile Clients
A technical brief covering the framework used to determine UK tax residence.
UK ISAs for Non-Residents and Returning Expats
A focused technical brief covering ISA ownership, contributions and planning issues after departure.
Long-Term Residence and UK Inheritance Tax
A technical resource covering the post-2025 residence-based inheritance-tax framework.
The Professional Adviser's Guide to Cross-Border Financial Planning
A broader professional resource for clients whose residence, pensions, investments and retirement span jurisdictions.
Temporary non-residence can make the return date important
A client leaving the UK should not assume that becoming non-resident permanently removes UK tax from everything realised while abroad.
The temporary non-residence rules can apply where a former UK resident returns after a period of non-residence of five years or less, subject to the detailed statutory conditions.
Depending on the circumstances, certain gains and income realised during the period of non-residence can become taxable when the client returns.
That makes the expected duration of absence an important planning consideration.
The tax adviser should establish whether the rules apply. Josh's role is to ensure the client's investment and retirement decisions are made with that advice in mind.
Leaving the UK does not immediately end all UK inheritance-tax exposure
The inheritance-tax framework changed from 6 April 2025.
The previous domicile-based approach was replaced by a residence-based system.
Whether a client's worldwide estate remains within the UK inheritance-tax net after departure can depend on how long they were UK resident before leaving.
For long-term UK residents, worldwide exposure can continue for a period after departure.
This means departure planning should consider:
- previous UK residence history
- expected duration overseas
- location of assets
- beneficiaries
- pensions
- life assurance
- future residence
The relevant tax or legal adviser should establish the IHT position, while the financial plan can address investment, pension, liquidity and protection implications.
When should the referral happen?
Ideally, before the client leaves the UK.
That allows time to review:
residence timing
ISAs
pensions
investment platforms
temporary non-residence
inheritance tax
future retirement plans
the destination jurisdiction
Some decisions are significantly easier to address before UK residence ends.