Returning Home.

Expatriates returning home are usually obsessed with a three letter word ending in __x.
Of course I mean Tax
For all nationalities it pays to take advice on this move and minimize your liability.
As there are many Brits living in the Hua Hin area I want to have a brief look at the implications for them. Other nationalities please feel free to contact me for advice.
You may need to start your tax planning in the tax year prior to your return. Obviously detailed tax planning is outside the scope of this article but here is some advice that may be helpful.
Income Tax Planning. It is generally advisable to close overseas bank accounts prior to your return. Interest credited to your account up to closure is not taxable in the UK
Unlike the USA earnings relating to work overseas are generally not chargeable to UK income tax but any bonus or terminal leave pay, paid after return, is liable. To mitigate this make sure all bonuses and terminal pay is paid prior to your return.
Lump sums from pension schemes or provident funds are generally tax free.
Overseas pensions paid in the UK after becoming resident have a beneficial tax treatment.
Share options need careful consideration. The tax position will depend on when options were granted the scheme under which they were granted and when they are to be exercised
If you have a spouse who is non-domiciled perhaps you should consider the merits of establishing an offshore trust.
Capital Gains Tax.
Two matters are crucial. Individuals who left the UK on or after 17th.March1998 remain potentially within the scope of UK capital gains tax in respect of assets held prior to departure, unless they are outside the UK for five complete tax years. If these conditions are not met then gains and losses accruing to the individual whilst overseas are treated as chargeable in the year of return.
A property owned and occupied as a person's home can generally be sold free of capital gains tax. If a property was lived in prior to overseas assignment, reoccupied on return and then sold, the period of absence due to work overseas (even if the property was let), is treated as a period of residence. The key point is that the property must be reoccupied on return to preserve the capital gains tax exemption.
Inheritance Tax Planning. A UK domiciled person is liable to inheritance tax on world wide assets. Even if you have lived abroad for many years you are unlikely to have lost your UK domicile. If an individual plans to return to the UK then they have an ideal opportunity to consider inheritance tax planning strategies at that time. Trusts particularly overseas trusts for non-domiciled individuals can be extremely efficient in mitigating inheritance tax..
In conclusion, returning to the UK gives rise to very real tax issues that need to be considered well in advance of the event. Advance structuring and planning of an individual's affairs can ensure that tax is minimized and wealth maximized. Tax legislation is constantly changing and therefore it is essential for expatriates to receive up to date advice based on their individual circumstances.