This chapter may seem out of place in a book dealing with retirement abroad. However, by no means everybody who retires to another country stays there indefinitely. Bereavement, deteriorating health, family considerations and dwindling savings are just four of the circumstances that may prompt you to return to the UK. When you move abroad, the idea that one day you might return to the UK will be far from your mind. Indeed if you are the very picture of health the idea of your having to put up with the British climate again may sound downright ridiculous.

 

Yet any decision to return needs to be taken while you are still sufficiently robust to cope with the upheaval of moving. As Per Svensson puts it: ‘Returning to Britain in your early seventies might be a wrench; returning to Britain in your early eighties could be a major problem.’ 1It is therefore important to have contingency plans in order to ensure the operation goes as smoothly as possible. Much of the preparation will be obvious: the procedures will be similar to those you went through when you came. (See Chapter 7.)

Before You Go

More Haste Less Speed

Unless you are beset by an emergency and have no option other than to return to the UK in a hurry, it is advisable to indulge in a little forward planning, partly in order to minimise financial loss and make your homecoming a relatively smooth affair.

The first thing you need to consider is whether you will be returning home for good – or just for a few months. Some people have second thoughts when they arrive back in the UK and start to regret any decisions they have made in haste.

Assuming that you are leaving for good there will be plenty to sort out. For instance, if you own your current residence, you will probably want to dispose of it, unless you plan to keep it on as a holiday retreat. If you have no home in the UK, you will need to consider where you are going to live and start to make arrangements. There may be dependents or pets to be considered.

However, one of your first considerations will be to make sure that your financial affairs are in order and you must look into the tax implications of any move.

Uk Tax Considerations

Your return to the UK – even if it is only temporary – could be a bonanza for the Inland Revenue, unless you exercise due care. You should bear in mind that you become subject to UK tax again if:

• you move back to the UK on a permanent basis;
• you stay in the UK for 183 days or more in one year;
• you visit the UK and have accommodation available for your use (see Chapter 6);
• you visit the UK regularly and after four tax years your visits average 91 days or more per tax year.

 

If you return prematurely you might even have to pay tax arrears. This would happen, for instance, if:

• you are treated as a resident from the year in which you decided to make regular visits averaging 91 days;
• you have only provisional non-residential status in the eyes of the Inland Revenue and return within three years of your departure from the UK. This could mean you are liable for three years’ tax.

 

This is why it makes sense to check with a financial adviser before you return. Although a good adviser may not be able to remove your tax liability entirely, he should be able to suggest ways of lessening it.

One idea might be for you to dispose of assets that have appreciated in value before you move back to the UK. In certain cases this may have to be done in the tax year before you move back.

Once you are back in the UK you need to re-establish contact with the Inland Revenue.