Ross Naylor - Financial Advice for British Expats

16/12/2025

I was reading a story about the footballer Ivan Toney while I was eating my lunch.

There has been some chatter recently that he would leave his club in Saudi Arabia (Al-Ahli) next month and return to the Premier League.

However, there seems to be a major sticking point with such a move - the tax man.

He earns £400K a week in Saudi Arabia tax-free.

However, in order to keep his non-UK tax resident status, he needs to stay resident outside the UK until April 2026.

If he returns before then, he will be on the hook to HMRC.

Given that he has already earned £28m while in Saudi Arabia, that would be an expensive move.

This type of thing doesn't just apply to star footballers, though.

HMRC's temporary non-residence rules catch out regular expats too.

You can find out more about these rules in this guide: https://rossnaylor.com/uk-temporary-non-residency-rules/

15/12/2025

𝗤: 𝗜 𝗵𝗮𝘃𝗲 𝗯𝗲𝗲𝗻 𝗽𝗮𝘆𝗶𝗻𝗴 𝗺𝘆 𝗰𝗹𝗮𝘀𝘀 𝟮 𝗡𝗜𝗖𝘀 𝗳𝗮𝗶𝘁𝗵𝗳𝘂𝗹𝗹𝘆 𝗳𝗼𝗿 𝘀𝗲𝘃𝗲𝗿𝗮𝗹 𝘆𝗲𝗮𝗿𝘀 𝗻𝗼𝘄 - 𝘁𝗵𝗮𝗻𝗸𝘀 𝘁𝗼 𝘆𝗼𝘂𝗿 𝗴𝗼𝗼𝗱 𝗰𝗼𝘂𝗻𝘀𝗲𝗹. 𝗜 𝘀𝗮𝘄 𝘀𝗼𝗺𝗲𝘄𝗵𝗲𝗿𝗲 𝘁𝗵𝗮𝘁 𝘁𝗵𝗲 𝗴𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗶𝘀 𝘁𝗼 𝗰𝗵𝗮𝗻𝗴𝗲 𝘂𝘀 𝘁𝗼 𝗖𝗹𝗮𝘀𝘀 𝟯, 𝘄𝗶𝘁𝗵 𝗶𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗴𝗿𝗲𝗮𝘁𝗹𝘆 𝗿𝗲𝗱𝘂𝗰𝗲𝗱 𝗽𝗲𝗻𝘀𝗶𝗼𝗻 𝗽𝗮𝘆𝗼𝘂𝘁𝘀 𝗱𝗼𝘄𝗻 𝘁𝗵𝗲 𝗹𝗶𝗻𝗲. 𝗔𝘀 𝘁𝗵𝗶𝘀 𝗵𝗮𝗽𝗽𝘆 𝗱𝗮𝘆 𝗶𝘀 𝗰𝗿𝗲𝗲𝗽𝗶𝗻𝗴 𝗲𝘃𝗲𝗿 𝗰𝗹𝗼𝘀𝗲𝗿, 𝗜 𝘄𝗼𝘂𝗹𝗱 𝗯𝗲 𝗴𝗿𝗮𝘁𝗲𝗳𝘂𝗹 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗳𝗲𝗲𝗱𝗯𝗮𝗰𝗸.

A: We (those of us living overseas) are all going to be changed to Class 3 rates, I’m afraid.

It will take effect from April 2026, although we probably won’t notice it until summer 2026, as payments are usually collected in arrears.

My understanding is that they will automatically stop collecting contributions then and contact us individually to restart them at Class 3 levels - this is going to create an administrative nightmare.

Regarding the actual pension payouts, I do not expect them to be reduced.

However, I do expect the triple lock (the mechanism that increases state pension payments by the higher of 2.5%, retail inflation or consumer inflation) to be watered down eventually - it is simply unsustainable.

11/12/2025

𝗘𝘅𝗽𝗮𝘁 𝗙𝗔𝗤 - 𝗗𝗼 𝘁𝗵𝗲 𝗿𝗲𝗰𝗲𝗻𝘁 𝗯𝘂𝗱𝗴𝗲𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗮𝗳𝗳𝗲𝗰𝘁 𝗲𝘅𝗽𝗮𝘁𝘀 𝘄𝗵𝗼 𝗻𝗲𝘃𝗲𝗿 𝗽𝗹𝗮𝗻 𝘁𝗼 𝗿𝗲𝘁𝘂𝗿𝗻 𝘁𝗼 𝘁𝗵𝗲 𝗨𝗞❓

Yes. Rental income, dividends, savings income, and IHT rules still apply to non-residents.

10/12/2025

From April 2027, the UK is introducing a new, tougher tax regime for rental property income.

If you’re a British expat who owns UK property, whether as a long-term investment or as a “just in case we return” asset, this change could materially reduce your net income.

For some landlords, it will quietly turn a once-solid investment into a marginal or loss-making one.

𝗪𝗵𝗮𝘁’𝘀 𝗖𝗵𝗮𝗻𝗴𝗶𝗻𝗴?

A new property income tax schedule is being introduced for UK rental income.

The new tax rates will be:

▪️ 22% (Basic property rate)

▪️ 42% (Higher property rate)

▪️ 47% (Additional property rate)

𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 𝗳𝗼𝗿 𝗘𝘅𝗽𝗮𝘁𝘀

Many expats hold UK property for one of four reasons:

▪️ Long-term income

▪️ Capital growth

▪️ A future return to the UK

▪️ A family safety net

But under the new tax rules:

✔ Highly geared (mortgaged) properties will be hit hardest

✔ Net rental income will fall, sometimes sharply

✔ Some landlords will move from profit into negative cash flow

✔ Yield assumptions from the past may no longer be valid

This is particularly relevant for non-resident landlords who already face:

❌ Complex cross-border tax rules

❌ Restricted reliefs

❌ Currency risk between rent received and overseas living costs

𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗜𝘀 𝗮 𝗕𝗶𝗴𝗴𝗲𝗿 𝗗𝗲𝗮𝗹 𝗧𝗵𝗮𝗻 𝗠𝗮𝗻𝘆 𝗥𝗲𝗮𝗹𝗶𝘀𝗲

This change doesn’t arrive in isolation.

It coincides with:

▪️ A future surcharge on high-value UK property

▪️ Tightening inheritance tax rules

▪️ Greater scrutiny on UK-sourced income for returning expats

In other words, UK property is becoming more expensive to hold from every angle — income, capital, and estate planning.

𝗠𝘆 𝗩𝗶𝗲𝘄

For many expats, UK property has been a reliable, low-effort source of income for decades.

But the rules are changing.

The combination of higher tax, restricted relief, future surcharges and tightening IHT rules is quietly reshaping the true cost of owning UK property from abroad.

Some landlords will adapt.

Some will restructure.

And some, quite sensibly, will decide the time has come to exit.

30/11/2025

🌐🚨 If you live outside the UK but still hold money in a UK bank account, this matters to you.

From 1 December 2025, the UK is increasing its bank deposit protection limit from £85,000 to £120,000 per person, per authorised bank, building society or credit union (subject to licence).

This change affects British expats, overseas residents and anyone holding cash in UK banks while living abroad.

It’s a positive step.

But for many expats, the real protection depends on how your accounts are structured.

𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀

▪️ UK deposit protection increases from £85,000 to £120,000 per person, per bank (licence) from 1 December 2025.

▪️ Temporary high balance protection rises to £1.4 million for six months for certain life events.

▪️ Protection is based on banking licence, not brand name.

▪️ Many well-known banks share the same licence, reducing your effective protection (e.g. HSBC and First Direct)

▪️ Joint accounts are protected on a per-person basis.

▪️ Expats holding large cash balances in the UK are often less protected than they think.

💡 You can visit my full article on the subject to find out more. The link is in the pinned comment below 👇🏻

22/11/2025

Something for the weekend....

Have you ever heard of an "in case of death folder"?

Sounds morbid, right?

In reality, it is one of the most important things you can do for your family.

💡 It will save them stress, uncertainty, and unnecessary costs.

💡 It will ensure your estate is managed efficiently, no matter where your assets are located.

💡 It will give you control over what happens to your wealth, investments, and property.

Find out more in this post (includes a checklist for buidling your own).

See the pinned 📌 link in the comments below 👇🏻

13/11/2025

🇬🇧 ✈️ 𝗘𝘅𝗽𝗮𝘁 𝗙𝗔𝗤 - 𝗖𝗮𝗻 𝗜 𝗽𝗮𝘆 𝗶𝗻𝘁𝗼 𝗮𝗻 𝗜𝗦𝗔 𝗶𝗳 𝗜 𝗹𝗶𝘃𝗲 𝗼𝘃𝗲𝗿𝘀𝗲𝗮𝘀❓

No, you can’t pay into an ISA once you’re living overseas.

Under HMRC rules, you must be UK tax resident to subscribe (i.e. pay new money) into an ISA.

As soon as you become non-resident for UK tax purposes, you lose the ability to make further contributions, though you don’t lose the account itself.

✅ 𝗪𝗵𝗮𝘁 𝘆𝗼𝘂 𝗰𝗮𝗻 𝗱𝗼

▪️ Keep your existing ISAs open - You don’t have to close them when you move abroad, and they can continue to grow free of UK tax.

▪️ Return to the UK later? - Once you’re UK tax resident again, you can resume contributions, up to the annual allowance in that tax year.

▪️ Withdraw money anytime - You can take funds out without penalty, but be aware your new country of residence may tax ISA income or gains.

⚠️ 𝗪𝗵𝗮𝘁 𝘁𝗼 𝘄𝗮𝘁𝗰𝗵 𝗼𝘂𝘁 𝗳𝗼𝗿

▪️ Local taxation - Most countries don’t recognise the UK ISA’s tax-free status. So dividends, interest, or gains may be taxable locally.

▪️ Currency mismatch - If you’re living abroad, consider the FX exposure; ISA funds are usually sterling-denominated.

▪️ Inheritance tax - ISAs remain part of your UK estate for IHT purposes.

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If you found this useful, subscribe to my newsletter where I share practical insights on pensions, investing and estate planning for expats (use the pinned link in the comments below👇🏻)

11/11/2025

🌐 💷 𝗔𝗿𝗲 𝘆𝗼𝘂 𝗹𝗶𝘃𝗶𝗻𝗴 𝗼𝘃𝗲𝗿𝘀𝗲𝗮𝘀 𝗯𝘂𝘁 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝘁𝗼 𝗱𝗿𝗮𝘄 𝗮 𝗨𝗞 𝗽𝗲𝗻𝘀𝗶𝗼𝗻?

If so, you could be paying UK tax unnecessarily, even though you’re no longer UK tax resident.

Here’s the thing most expats don’t realise 👇

When you take income from a UK pension, your provider usually applies UK PAYE tax at source.

That’s fine if you still live in the UK…

…but if you’ve moved abroad, it’s often wrong.

The solution?

👉 Apply for an NT tax code.

💡 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮𝗻 𝗡𝗧 𝗰𝗼𝗱𝗲?

“NT” stands for “No Tax.”

It’s an HMRC code that tells your pension provider not to deduct UK tax at source.

It doesn’t mean you pay no tax at all, you’ll still pay tax in your country of residence, under the local rules or the relevant Double Taxation Agreement (DTA).

But it prevents your UK pension from being taxed twice.

🧾 𝗛𝗼𝘄 𝘁𝗼 𝗮𝗽𝗽𝗹𝘆 (𝗶𝗻 𝗯𝗿𝗶𝗲𝗳)

1️⃣ Confirm that you’re non-UK tax resident.

2️⃣ Ask your pension provider to make a small taxable withdrawal to create a PAYE record with HMRC.

3️⃣ Complete the relevant HMRC form (often DT-Individual) and get it certified by your local tax authority.

4️⃣ Send it to HMRC and wait for confirmation (it can take 12+ weeks).

Once approved, your provider applies the NT code and future payments are made gross (no UK tax deducted).

🧭 𝗪𝗵𝘆 𝗶𝘁 𝗺𝗮𝘁𝘁𝗲𝗿𝘀

Without the NT code, many expats end up paying UK tax on their pension income, then face months of paperwork reclaiming it (HMRC are far more enthusiastic about collecting tax than they are about refunding it 🙁 ).

Get it right from the start, and your pension income flows smoothly and efficiently to you overseas.

I’ve written a detailed guide, including eligibility rules, examples, and a step-by-step checklist. You can find a link in the pinned comment below 👇🏻.

04/11/2025

Last week, a newsletter reader asked me this question:

“𝘙𝘰𝘴𝘴, 𝘮𝘺 𝘸𝘪𝘧𝘦 𝘪𝘴𝘯’𝘵 𝘉𝘳𝘪𝘵𝘪𝘴𝘩. 𝘐𝘧 𝘴𝘰𝘮𝘦𝘵𝘩𝘪𝘯𝘨 𝘩𝘢𝘱𝘱𝘦𝘯𝘴 𝘵𝘰 𝘮𝘦, 𝘸𝘪𝘭𝘭 𝘴𝘩𝘦 𝘩𝘢𝘷𝘦 𝘵𝘰 𝘱𝘢𝘺 𝘜𝘒 𝘪𝘯𝘩𝘦𝘳𝘪𝘵𝘢𝘯𝘤𝘦 𝘵𝘢𝘹 𝘰𝘯 𝘦𝘷𝘦𝘳𝘺𝘵𝘩𝘪𝘯𝘨 𝘸𝘦 𝘰𝘸𝘯?”

It’s a great question, and one that’s becoming very relevant for mixed-nationality and cross-border couples.

Until now, the UK inheritance tax (IHT) system was based on domicile, a complex and often misunderstood concept.

But from April this year, everything changed when the UK moved to a residence-based inheritance tax system.

Here’s what that means in simple terms

𝗞𝗲𝘆 𝗽𝗼𝗶𝗻𝘁𝘀

▪️ If you’ve lived in the UK for 10 of the last 20 years, you’ll be classed as a long-term resident (LTR); and your worldwide assets will fall within UK IHT.

▪️ If your spouse isn’t an LTR, the spousal exemption is capped at £325,000, unless they elect to join the UK tax regime (bringing their own global assets into scope).

▪️ There’s an IHT “tail” of up to 10 years after leaving the UK.

▪️ And from April 2027, pensions will also start to fall under IHT.

For couples with different passports, homes, or life histories, this shift could be significant.

If you’d like to understand how the new rules work, and what steps mixed-nationality couples can take to prepare, I’ve written a full explainer (you can find the link 🔗 in the pinned comment below 👇🏻 )

29/10/2025

Retire To Poland With Confidence: Essential Tips For Brits Looking To Move

Planning to retire to Poland from the UK? Discover essential tips on pensions, tax, and healthcare to help British expats enjoy a smooth retirement abroad.

27/10/2025

💡 𝗜𝗳 𝘆𝗼𝘂 𝗮𝗿𝗲 𝗺𝗼𝘃𝗶𝗻𝗴 𝗼𝗿 𝗿𝗲𝘁𝗶𝗿𝗶𝗻𝗴 𝗮𝗯𝗿𝗼𝗮𝗱, 𝘆𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝗹𝗲𝘁 𝗛𝗠𝗥𝗖 𝗸𝗻𝗼𝘄

You can use form P85 to do so (see pinned 📌 link in the comments below👇🏻)

You might even get a cheeky tax rebate 🙂

23/10/2025

I often write about financial planning for British expats who are looking to return home.

Invariably, I get multiple comments along the lines of "why would anyone want to move back?".

Here are 4 good reasons I've heard recently from people I've helped organise their finances before returning.

👴🏻 To help take care of elderly parents

👶🏻 To be closer to children/grandchildren

📚 So that their children can go to university at home rates rather than international ones

🏡 Because it is home

What about you? If you are a Brit living overseas, is there anything that would make you move back?

You can read more about why UK expats return home (and the costly mistakes that need to be avoided) in this post - https://rossnaylor.com/why-expats-return-to-the-uk-and-the-costly-tax-mistakes-they-need-to-avoid/