Wealth Management for Leaving the UK: What to Do Before You Move Abroad

Effective wealth management for leaving the UK ensures you protect assets, optimize taxes, and plan for both short- and long-term financial security.

This is especially important because leaving the UK involves complex decisions around pensions, investments, taxes, and offshore banking.

This guide explores:

• What is wealth management and its importance when leaving the UK?
• Are wealth managers worth it in the UK?
• Who to notify when leaving the UK?
• What happens to your UK pension contributions if you move abroad?
• What happens to my National Insurance contributions if I leave the UK?

My contact details are hello@adamfayed.com and WhatsApp ‪+44-7393-450-837 if you have any questions.

The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

What is wealth management in the UK?

Wealth management in the UK is a comprehensive financial service that helps individuals manage their money, investment options, pensions, and tax planning.

It combines investment advice, retirement planning, tax optimization, estate planning, and risk management.

For those leaving the UK, wealth management also involves international planning, such as handling cross-border tax obligations and transferring pensions abroad.

At what point is a wealth manager worth it?

A wealth manager becomes valuable when your financial affairs are complex or you are planning an international move.

Typical indicators include:

• Owning multiple investment accounts, properties, or pensions: Managing diverse assets requires coordinated strategies to optimize returns, minimize risk, and ensure tax efficiency across different holdings.
• Facing cross-border tax implications or inheritance planning: Wealth managers can navigate complex international tax rules, helping you avoid double taxation and plan your estate efficiently.
• Planning to transfer or invest large sums abroad: Large transfers or overseas investments carry regulatory, currency, and tax considerations that a wealth manager can help structure for maximum efficiency.
• Seeking guidance on reducing exposure to UK taxes while maintaining compliance: Professional advice ensures you take advantage of reliefs, exemptions, and residency rules without running afoul of HMRC regulations.

How much money do you need for wealth management in the UK?

While there’s no strict minimum for wealth management, it is typically worthwhile if you have:

• Investable assets above £250,000–£500,000: At this level, professional advice can meaningfully optimize investment returns, tax efficiency, and retirement planning.
• Complex financial portfolios or international assets: Managing multiple accounts, cross-border investments, or diverse asset classes requires expertise to coordinate strategies and reduce risk.
• Multiple income streams, pensions, or property holdings: A wealth manager can help integrate all sources of income and assets, ensuring effective tax planning and long-term financial security.

Wealth management in the UK is generally recommended for individuals whose assets are large enough to justify the service fees, which typically range from 0.5% to 1.5% of assets under management annually.

What do I need to do if I am leaving the UK?

Before leaving the UK permanently or long-term, it’s essential to take specific financial and administrative steps to protect your assets and minimize tax liabilities:

• Notify HM Revenue & Customs (HMRC) of your departure and complete a P85 form
• Review your UK tax residency and potential liabilities
• Consider moving or restructuring investments to maintain efficiency
• Update your estate planning documents for cross-border considerations
• Evaluate your pension and National Insurance entitlements

Given the complexity of these tasks, professional wealth management can be invaluable to coordinate planning, optimize taxes, and safeguard your finances while leaving the UK.

Can I keep my bank account if I leave the UK?

Yes, many UK banks allow you to keep your account if you move abroad, though policies vary.

High-net-worth individuals should check:

• Eligibility to maintain accounts as a non-resident
• Online banking access and international transfers
• Fees for foreign currency transactions or maintaining accounts abroad

What happens to my UK pension if I leave the country?

When you leave the UK, your pension options and benefits may change, so it’s important to plan carefully to protect and optimize your retirement savings.

Here are the main types of pensions and how leaving the UK can affect them:

• Workplace and personal pensions: These pensions usually remain invested in the UK even after you move abroad. You may be able to continue contributions depending on your provider, but it’s important to check rules regarding overseas payments, currency conversions, and any fees for managing the account from abroad.
• State pension: Your UK state pension can generally be claimed abroad, allowing you to receive retirement income outside the UK. However, annual increases may be frozen if you live in certain countries, which can reduce the growth of your pension compared to staying in the UK.
• Transfers: Some private pensions can be moved to a Qualifying Recognized Overseas Pension Scheme (QROPS), which can simplify management and potentially offer tax advantages in your new country. Transfers require careful consideration of timing, fees, and tax implications to ensure you don’t incur unnecessary costs or penalties.

Can I get my National Insurance money back if I leave the UK?

National Insurance contributions are generally not refundable, as they count toward your UK state pension.

However, you may be entitled to a refund if you paid voluntary Class 3 National Insurance contributions and believe an error occurred when the payment was made.

You will not be entitled to a refund if the payment was correct but your circumstances changed afterward.

Additionally, if you’ve worked elsewhere in the EU or in a country with a reciprocal agreement, you may be able to use those contributions to qualify for pensions in that country.

Can I lose my UK residency if I live abroad?

Yes, you can lose your UK residency if you live abroad for an extended period, but it depends on your immigration status.

HMRC uses the Statutory Residence Test to determine tax residency, considering days spent in the UK, ties to the country, and previous residency history.

For example:

• Indefinite Leave to Remain (ILR): Can automatically end if you are outside the UK for two or more consecutive years.
• Settled status under the EU Settlement Scheme: Can lapse after five or more years abroad.
• British citizens or those with pre-settled/settled status: Generally retain the right to live in the UK, though you may need to take steps to re-establish residency for tax and legal purposes upon return.

Losing UK residency can affect your tax obligations, access to benefits, and pension rights, so careful planning before leaving the UK is essential if you intend to live abroad long-term.

Is it worth moving abroad from the UK?

Moving abroad can offer benefits such as lower taxes, a better lifestyle, or access to global investment opportunities.

For many, leaving the UK is motivated by factors like high income taxes, rising cost of living, limited property affordability, and slower economic growth.

However, it also requires careful planning to:

• Manage cross-border taxation: Ensure you understand how income, capital gains, and pensions will be taxed both in the UK and your new country.
• Maintain pensions and investments efficiently: Coordinate transfers, contributions, and withdrawals to optimize growth and minimize tax.
• Avoid inadvertently losing residency benefits: Losing UK residency can affect healthcare, social security entitlements, and state pension increases.

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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.