The financial questions you should answer before you move abroad

Moving abroad for work is exciting. There's the new role, the new city, often a better salary. The financial admin tends to get pushed to "later". The trouble is that some decisions are much easier to get right before you leave than to fix afterwards.

Where will you be tax resident?

Leaving the UK doesn't automatically make you non-resident for UK tax. The UK uses the Statutory Residence Test, which looks at things like how many days you spend in the UK and the ties you keep there. It's worth understanding how it applies to you before you go, especially in the first year, when the timing of your move can matter.

What happens to your pensions?

Workplace pensions in the UK usually stay where they are when you leave. That's not necessarily a problem, but you should know where each one is, how it's invested, and who to contact. Small pots from old jobs are easy to lose track of.

Then there's the State Pension. Years abroad without National Insurance contributions leave gaps in your record, so it's worth checking your forecast on GOV.UK before you leave.

Does your protection still cover you?

Life insurance, income protection and critical illness cover arranged in the UK may have restrictions if you live abroad, or may lapse when an employer's scheme ends. Overseas employers often provide some cover, but it's usually tied to the job. If you change roles, it can disappear overnight.

Which currency are your goals in?

If you're earning in dirhams or dollars but plan to retire in the UK, your long-term goals are in sterling. Currency movements can make a meaningful difference over decades, so it helps to think about which currency your savings and future spending are in.

Is your will still fit for purpose?

A UK will may not deal with assets held in another country in the way you expect, and local inheritance rules can differ significantly. If you're building a life, buying property or opening accounts abroad, it's worth checking how your estate would be handled there.

The common thread

None of these are reasons not to move. They're simply easier to think about calmly before you go than in a rush once you've arrived.

Common questions

Does leaving the UK make me non-resident for UK tax?

Not automatically. The UK uses the Statutory Residence Test, which looks at factors such as how many days you spend in the UK and the ties you keep there. The timing of your move can matter, especially in the first year.

What happens to my UK workplace pension if I move abroad?

It usually stays where it is. That isn't necessarily a problem, but you should know where each pension is, how it is invested and who to contact, because small pots from old jobs are easy to lose track of.

Will my UK life insurance still cover me if I live abroad?

Not always. Policies arranged in the UK may have restrictions for people living abroad, and cover through an employer scheme can end when you leave the job.