Last Updated on 15th March 2026
Reforms introduced over the last year or so have made a dramatic impact on the tax profiles of UK expats living overseas who decide to return home, with changes to the way British nationals are assessed as tax residents, and the new Foreign Income and Gains (FIG) regime.
Whether your move is temporary, to spend more time with loved ones, or permanent, there are many considerations, such as whether you’ll sell your overseas property, keep it as an investment, or need to transfer savings and bank accounts over.
Careful planning alongside professional financial advice is crucial, and the Chase Buchanan teams have collated our checklist of the most important considerations when planning to return to your country of origin.
Decide On How Long You Will Stay in the UK
Even if your visit is temporary, there is the chance that your tax status will change depending on how long you remain in the UK, which means making clear decisions now will affect every other aspect of your planning.
British nationals returning to Britain for a short break may not need to make any major changes, but if you’re intending to stay permanently, you will need to:
- Declare your change in circumstances to HMRC and the tax office overseas
- Update your will owing to the different probate rules between countries
- Think about whether to retain or transfer an overseas pension
Having a will in a different country could mean it won’t be recognised, as you’ll require an official translation, and to ensure your will is notarised in the country where it was made, and again in the UK, which can be costly and time-consuming.
International pension transfers are another consideration. You might hold a private scheme overseas and have previously transferred a UK fund into a Recognised Overseas Pension Scheme (ROPS) – and should give careful thought as to whether this requires another transfer.
Remember that pension transfers can be subject to taxation, and that pensions received in a foreign currency may fluctuate in value, often with additional bank fees to transfer pension income internationally.
Clarify How Returning to the UK Will Impact Your Residency Status
The impact on your residency position will depend on whether you are a tax resident of your current home country. For example, if you live in Cyprus, France, Spain or Portugal and have been living there for most of the year, you will probably already pay local taxes as a tax resident.
However, being an expat doesn’t necessarily mean you are no longer a UK resident. If you are considered a resident in Britain for taxes, your move won’t have as substantial an impact.
The general criteria for being treated as a UK resident are:
- You spend 183 days or longer in Britain during the tax year
- Your primary residence is in the UK, you have lived in it for at least 91 days, and you spend no more than 30 days in any overseas home
Residency isn’t always straightforward, and it may be that you have properties, assets, businesses and family ties in two places, in which case professional advice is required.
The UK’s FIG Scheme for Returning Expats
From April 2025, when the UK authorities reformed the tax rules for British expats, they also introduced the FIG scheme. Expats who have been living overseas as non-residents for 10 years or more can claim a tax exemption against foreign-sourced income and gains for the first 4 years of UK residency.
This could be very relevant to expats relocating back to the UK and may inform your decision-making in terms of how you manage assets and income sources overseas.
Think About Your Property Assets and the Timings of Potential Sales
If you own a home in the EU or further afield and decide to move permanently to the UK, there are practicalities and tax implications. As a rule of thumb, property owners pay taxes on income earned from anywhere in the world in the place where they are a resident for tax purposes.
If you are a British resident and rent out a property abroad, you will need to declare this to HMRC and pay the corresponding UK income tax, but you may also be subject to overseas taxes, in which case you will need to claim foreign tax credits, where available, to offset the difference.
Should you be considering buying a UK property to live in, it’s normally advisable to do so after you re-establish yourself as a resident. Investing in a property as a foreign resident is generally not ideal, as non-residents typically pay higher tax rates and do not qualify for exemptions.
Plan for Changes or Restructuring of Your Investment Portfolio
Many expats will have a range of investments, that might include:
- Savings accounts
- Offshore investments
- Pension schemes
- Stocks and shares
Every country has different tax rules, and it may be that efficient investments in, say, Spain or France are not in the UK, just as British ISAs aren’t tax-efficient elsewhere. Therefore, it is possible you will need to look at reinvesting, transferring or restructuring these aspects of your wealth.
Quantifying the taxes you’ll pay on overseas investments is key, as this may substantially affect your retirement budget, as is identifying whether your non-UK assets will continue to be beneficial components in your portfolio as a UK tax resident.
Inheritance tax is also a consideration. UK tax residents are subject to IHT at rates that tend to be higher than in other countries, so planning is essential, especially if you have been a non-resident for many years with no UK-based assets that has meant you were, until now, not exposed.
Time Your Relocation for Maximum Tax Efficiency
It may be that your move date is set in stone or is scheduled around family obligations. If not, it’s wise to seek guidance from an experienced adviser, as you could streamline your relocation by timing this strategically, rather than moving at your convenience and managing the tax impacts regardless.
The UK tax year runs from 6th April, and many rules, such as residency status determinations, depend on the amount of time you have spent in the country within a tax year, rather than a calendar year.
Similarly, many European countries account for taxes on a calendar year basis, so moving just before the end of a tax period might make your affairs more straightforward to manage.
Independent Support for Overseas British Expats Returning
There is a lot to think about when moving back to the UK from overseas, and this is just as complex as your original relocation, if not more so.
The key to a successful relocation is to plan carefully and work through your position with the benefit of professional guidance, ensuring that any assets or income streams are restructured where necessary to protect your future wealth.
For more advice around international relocations and the most tax-efficient routes available, you are welcome to contact your nearest Chase Buchanan Private Wealth Management team to schedule a private initial consultation.
© Chase Buchanan Private Wealth Management.
Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15 and offers its services in the EU on a cross-border basis as per the provisions of MiFID.
Chase Buchanan Insurance Services, Agents & Advisors is authorised and regulated by the Cyprus Insurance Companies Control Service with License No 6883 and offers services in the EU on a cross-border basis as per the provisions of the Insurance Distribution Directive (IDD).
Investing in financial instruments involves risk and may not be suitable for all investors. The value of investments may go up as well as down and past performance is not a reliable indicator of future results. You may lose part or all of your invested capital.
*Information correct as at March 2026
