Pre-departure planning

By Tolley

The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Pre-departure planning
  • Income tax
  • Principal private residence relief
  • Foreign currency accounts
  • Disposals after the date of departure
  • Record-keeping
  • Returning to the UK

This guidance note explains some of the tax traps and opportunities for people leaving the UK on or after 6 April 2013. It is an outline, and specific advice may need to be taken for individual clients, especially those with complicated affairs. For reporting requirements, see the Reporting requirements on leaving the UK guidance note.

It is recommended that you read the Residence - issues on leaving the UK (2013/14 onwards) guidance note before continuing.

This guidance note does not consider planning for national insurance contributions. For the national insurance position, see:

  • the GOV.UK website 
  • the EU provisions, Social security agreements and Moving to and from non-agreement countries guidance notes (subscription sensitive)
  • Tolley's National Insurance Contributions 2015/16 Chapter 51.1–51.63 (subscription sensitive)

For commentary on pre-departure planning that can be undertaken by the employer, see the Pre-departure planning from an employer’s perspective guidance note (subscription sensitive).

Income tax

Some planning points on departure include:

  • ensuring that a contract for providing services overseas was made overseas, as there is a risk that income from an employment contract made in the UK might be regarded as a UK asset
  • transfering any sources of foreign income (eg shares or bonds) from a resident spouse / civil partner to a non-resident spouse / civil partner so that future income arises free of UK tax. The transfer will normally be outside the scope of CGT and is not within the transfer of assets abroad rules (as spouses are considered to be the same person under ITA 2007, s 714(4)), see the Transfer of assets abroad code guidance note and Simon's Taxes E1.1101–E1.1161 (both subscription sensitive)

More on Leaving the UK: