We help families make sensible choices when they move back. This guide explains what “estate planning for uk expats returning home uk” means in 2025–2027 and why a return can create unexpected tax and legal risk.
Moving country changes the rules. Cross-border inheritance, shifts in residency tests and new pensions rules from April 2027 complicate the process. We set out a clear map, not legal advice, to help homeowners aged 45–75 spot the main decisions.
We explain the three pillars of a complete plan — distribution, tax and governance — so you can see what good looks like before the detail. Your portfolio may include more than a house: bank accounts, investments, business shares, life policies, pensions and overseas assets.
Through simple examples, like a Spanish holiday home or a French flat, we make cross-border succession and double taxation easier to follow. We also flag when specialist advice is sensible, particularly where timing, residency or trusts could change outcomes for your family.
Key Takeaways
- Returning residents face new tax and succession rules; act early.
- Focus on three pillars: distribution, tax and governance.
- Your portfolio can include pensions, insurance and overseas holdings.
- Simple examples make cross-border issues easier to understand.
- Get specialist advice when residency, timing or trusts affect outcomes.
Why returning to the UK changes your estate planning priorities
When you come back, small events—like buying a house or starting work—can trigger big fiscal and legal shifts. We guide you through the common moments that alter tax exposure and compliance duties so you can act before problems arise.
Common triggers that create risk
- Buying a residence in Britain or selling overseas property.
- Restarting UK employment or pension income.
- Children moving to local schools or closing foreign accommodation.
What can go wrong without a cross-border plan
Tax residency is often the first domino. A change in residency status can alter what income and gains are taxable and what HMRC expects you to report. That single shift explains many tax implications.
Compliance issues usually start small: missing paperwork, unclear dates, and careless assumptions. Without a cross-border approach you face conflicting wills, slow probate across jurisdictions and beneficiaries left waiting.
Double taxation can also appear where foreign death duties overlap UK rules. A simple annual review of documents helps keep pace with life changes and reduces unexpected costs.
Confirming your UK tax residency on return
Confirming your tax residency early can cut confusion and cost. We explain the Statutory Residence Test in plain terms and show the documents HMRC commonly asks for.
How the Statutory Residence Test works in practice
The SRT uses day counts and UK ties to decide residency. If you spend 183 days or more in the UK you are usually resident. Fewer than 16 days often means non-resident. Between 16 and 182 days depends on ties such as family, accommodation, work and prior UK history.
Split-year treatment and why timing matters
Split-year treatment can separate your return year into a non-UK and a UK part. That may reduce tax in the transition year, but only if you meet specific conditions. Small shifts in arrival dates can change outcomes.
Record-keeping HMRC may expect after you move
Keep a simple travel log and proof: boarding passes, tenancy or mortgage paperwork, employment start dates and school enrolment. These items help show when you became resident and protect against disputes later.
- Tip: Keep dates and receipts together—executors will thank you.
- Tip: A clear record supports fair tax reporting and smoother administration.
| Days in UK | Likely Result | Key Evidence |
|---|---|---|
| 183+ | Resident | Entry/exit stamps, accommodation |
| 16 or fewer | Non‑resident | Travel logs, overseas ties |
| 16–182 | Depends on ties | Family, work, prior UK days |
For a practical checklist as you plan the move, see our moving back checklist. Getting residency right helps protect income, gains and longer-term IHT exposure.
How UK inheritance tax works in the UK today
A clear threshold-and-rate model makes it simple to spot when inheritance tax bites and when it does not. We set out the headline numbers so you can estimate exposure quickly and plan next steps.
The 40% rate and the £325,000 nil‑rate band
In plain terms, the system uses an allowance and a rate. Most estates pay 40% on value above the £325,000 nil‑rate band.
That threshold is the starting point. If your total assets pass it, the excess faces the 40% charge before any reliefs.
When the allowance can rise to £500,000 for a family home
If a main property passes to your children (including adopted, step and foster) the nil‑rate band can increase to £500,000.
There are conditions and timing rules to meet. A careless transfer or the wrong ownership mix can trip people up.
Spouse, civil partner and charity exemptions
Transfers between spouses and civil partners are generally exempt from inheritance tax. That rule is powerful but not a complete solution if you want to protect other beneficiaries later.
Charitable gifts can also reduce liability. Leave at least 10% of your net estate to charity and the tax rate on the remainder can drop to 36% — a useful option where values and wishes align.
“We recommend reviewing allowances every few years to reflect changing values, property prices and residency rules.”
| Rule | Threshold or Rate | Typical effect |
|---|---|---|
| Nil‑rate band | £325,000 | First slice free of tax |
| Main residence addition | Up to £500,000 | When passed to children |
| Charity gift | 10%+ net estate | Rate reduces to 36% |
- Tip: Residency and long‑term status in recent years can affect whether overseas assets count towards the total tax bill.
- Tip: A quick estimate using these thresholds shows whether you need detailed advice.
Long-Term Residence rules from April 2025 and what they mean for expats
From 6 April 2025 the rules moved the focus from historic domicile to where someone has been resident. That change means many people who were once overseas can now face UK tax on their worldwide assets if they meet the long‑term resident test.
The 10 out of 20 years test
Long‑term resident (LTR) status applies if you were UK tax resident in at least 10 of the previous 20 tax years. Think of it as a simple timeline: ten checked boxes in the last twenty puts you inside the rule.
This can happen faster than people expect. A few returns to the UK over a decade may tick the 10‑year count and change tax status.
Worldwide assets exposure and the residence “tail”
If you become an LTR, the UK can tax worldwide assets on death. That covers property, overseas investments, bank accounts and business interests.
Leaving again does not remove the risk immediately. A residence “tail” can continue exposure for between three and ten years depending on your prior years of residence.
Who may fall outside the new regime — and why it matters
Some people fall outside the rules. For example, certain non‑residents in 2025/26 or those meeting specific guidance conditions escape worldwide IHT. That difference can change whether trusts and gifts are effective.
“We recommend reviewing your residence history now. Small timing changes can change long‑term tax consequences.”
- Action: Map your last 20 tax years against UK residency.
- Action: List worldwide assets so you can see exposure.
- Action: Seek specialist advice early where the tail or trusts might apply.
For more on cross‑border issues and how assets overseas are treated, see our guide on estate planning for UK expats with assets.
Mapping your estate: UK assets vs overseas assets
Start by sketching a one-page map that separates domestic holdings from foreign ones. That view drives most decisions and shows what sits inside UK tax reach and what may not.
Understanding UK-situs items and when only they are taxed
UK-situs means assets that are treated as located in Britain for tax purposes. If you are treated as based abroad, typically only these assets face UK IHT. This distinction can reduce exposure but depends on residency history.
Common asset types and how they behave
- Property (UK and overseas) — often slow to administer and may need local probate.
- Bank accounts and cash — UK accounts are easy; foreign currency accounts can sit outside IHT in some cases.
- Investments and funds — open-ended funds can be non‑situs; private company shares are slower.
- Pensions — many overseas pensions sit outside UK IHT, but residency history can change that.
- Insurance, business interests and income streams — gather policy numbers and ownership details now.
| Asset type | Situs (typical) | Admin speed | Common evidence |
|---|---|---|---|
| Residential property | Where it is located | Slow | Title deeds, local probate |
| Bank accounts (foreign) | Often non‑situs | Fast | Statements, account numbers |
| Open‑ended funds | May be non‑situs | Medium | Fund certificates, ISIN |
| Pensions | Often outside IHT | Varies | Policy numbers, trustee details |
Action: build your one‑page map now and keep statements together. Good asset management today prevents executor confusion and helps protect value for beneficiaries.
estate planning for uk expats returning home uk: what a complete plan includes
Good preparation ties who receives assets, how taxes apply and who will act if you cannot into a single playbook.
Distribution: who inherits what, when and how
Decide who gets what, and whether gifts are outright or staged. Think about children from earlier relationships and vulnerable beneficiaries.
Practical prompts: list beneficiaries, set ages or milestones for access, and name guardians or protectors where needed.
Tax: inheritance tax, income tax and capital gains considerations
Look at three lenses: inheritance tax, income tax and capital gains tax. Each can be triggered at different times.
Tip: match actions to timing — a lifetime gift, a sale or a pension nomination can create different tax results.
Governance: executors, attorneys and trustees
Choose clear executors, lasting powers of attorney and trustees. Good governance speeds administration and avoids family rows.
When to get advice: if you have overseas property, blended families, high‑value pensions or trusts, specialist advice usually pays for itself.
| Area | Typical tools | Key question | When to seek advice |
|---|---|---|---|
| Distribution | Will, beneficiary lists | Who gets what and when? | Blended families or vulnerable heirs |
| Tax | Lifetime gifts, trusts, nominations | How much tax may be due? | High values, overseas assets or LTR status |
| Governance | Executors, LPAs, trustees | Who will act and how? | Complex assets or distant heirs |
Wills for returning expats: getting the foundations right
A clear will is the simplest way to make your final wishes count where laws cross borders.
Why intestacy can override your wishes
Without a valid will, statutory rules decide who inherits. That often excludes friends or non‑married partners and can be harsh in second marriages.
Single will versus separate wills
One will can cover all assets, but separate wills — one for domestic property and one for foreign holdings — often speed administration and cut translation delays.
Be careful: a new UK will can unintentionally revoke an older foreign will. Specialist drafting avoids that conflict.
Choosing executors for cross-border cases
Appoint a trusted executor who can act where assets sit. Family members work well for simple cases.
For complex, multi-jurisdictional assets, consider professional services such as a solicitor or trustee firm.
| Issue | Benefit | When to choose |
|---|---|---|
| Single will | Simpler record | Mostly UK assets |
| Separate wills | Faster local probate | Significant foreign property |
| Professional executor | Handles cross‑border tasks | Complex assets or distant heirs |
What executors need now: an asset list, key contacts, policy numbers and a short digital access plan. This makes the process kinder and quicker for your beneficiaries.
Probate and estate administration in the UK
A grant of probate gives executors authority to deal with accounts, investments and property that do not pass automatically.
When a grant of probate is likely to be needed
We usually need a grant when there are multiple accounts, significant investments or a house in the name of the deceased.
Higher value or complex portfolios almost always trigger the process. Banks and platforms often insist on the court authorisation before releasing funds.
When probate may not be required for jointly held assets
Some assets pass by survivorship. Joint tenants in property or co‑owned cash and shares can transfer automatically to the survivor.
Important: joint ownership must match your wider wishes. Otherwise it can frustrate good management and create family issues later.
How probate delays can compound overseas issues
Delays cost time and value. Foreign registries may ask for certified translations, apostilles or local court papers on top of UK probate.
Good administration starts before death. A tidy file with titles, account numbers and adviser contacts can save months.
| Area | Typical need | Practical action |
|---|---|---|
| UK bank accounts | Probate if sole named | List accounts and online logins |
| Joint assets | No probate if joint tenant | Check ownership form and beneficiary rules |
| Overseas property | Often needs local steps | Gather title deeds and translator contact |
Quick checklist for executors: where key documents are stored, adviser names, immediate bills to pay and a simple contact list.
Lasting power of attorney and incapacity planning
Deciding who will look after your finances and health before you need them avoids chaos later. A lasting power of attorney (LPA) lets a trusted person act for you if you lose capacity.
Why incapacity planning matters: illness often brings urgent choices about care, bills and property. Without an LPA, families can face legal delay and higher costs. Acting early gives peace of mind.
Health and welfare decisions
This LPA covers medical treatment, care location and daily care choices. Attorneys must follow your wishes and act in your best interests.
Property and financial affairs authority
This covers bank accounts, bills, pensions and property management. You can allow it to be used while you still have capacity if you wish.
Registration and when your attorneys can act
An LPA must be registered with the Office of the Public Guardian before it can be used. Registration delays can leave families unable to manage urgent matters.
- Choosing attorneys: pick people who match your needs, can handle paperwork and live where they can act quickly.
- Protection: an LPA stops the wrong person stepping in and shields family members from blocked accounts or unpaid care fees.
- Cross-border note: if you have overseas accounts or property, check how local rules affect attorney authority and management.
| Issue | Result | Practical step |
|---|---|---|
| Health decisions | Attorneys act when needed | Draft health LPA |
| Financial affairs | Money and property managed | Register P&FA LPA |
| Timing | Delays limit use | Register early |
We recommend combining LPAs with your will and wider plans. For further estate planning guidance and tailored services, seek trusted professional advice to match your family’s needs.
Cross-border succession issues and forced heirship rules
Local succession laws can override a will made elsewhere and leave families surprised.
In some countries, including France, Spain and the UAE, forced heirship reserves a share of your inheritance for close relatives. That means parts of your assets can pass automatically, no matter what your will says. This can affect property ownership and who receives cash or investments.
How forced heirship can affect your wishes
Forced heirship often protects children or a spouse. In practice, it may limit how you distribute property and other assets.
For example, a Spanish or French holiday property may fall under local rules that reserve a portion for descendants. In the UAE, different personal law systems can apply depending on nationality and residence.
Overseas property and local succession law
Real estate is usually governed by the law where the property stands. That can mean separate procedures and different outcomes from UK documents.
Reducing conflict between documents
Two sets of documents that contradict each other create delay, cost and family tension. To reduce that risk:
- Align definitions: ensure beneficiaries are named consistently across wills and nominations.
- Avoid revocation traps: drafting must not unintentionally cancel a foreign will.
- Get local advice: ask advisers in each country to read the full picture.
“When assets sit in more than one country, early cross‑border advice is the most effective way to prevent conflict.”
| Issue | Effect abroad | Practical step |
|---|---|---|
| Forced heirship | Certain relatives must inherit | Check local rules and adjust wills |
| Property situs | Local law governs succession | Consider a separate local will |
| Contradictory documents | Delays and legal disputes | Align language and seek cross‑border review |
When your circumstances include children from different relationships or multiple properties, we recommend seeking specialist cross‑border legal advice. For more on owning property abroad and how overseas inheritance tax rules can affect your wider plan, see our guide on owning property abroad.
Double taxation and treaty relief for international estates
Cross-border inheritances can trigger charges in more than one country and, without care, leave heirs facing duplicate bills. We explain how and when this happens and what can reduce the burden.
When both countries can tax the same inheritance
Double taxation occurs when two jurisdictions claim the same asset as within their reach. A UK resident who still holds foreign property is a common example.
Practical implication: you may pay local levies first, then face a secondary claim unless relief applies.
Using double taxation agreements to offset liabilities
Double taxation agreements (DTAs) often allow local tax to be credited against a UK charge. Claiming relief needs the right receipts, valuations and certified translations.
Keep records: local tax receipts, official valuations and dates. Executors must produce these to obtain offsets.
Examples and why planning differs by jurisdiction
| Country | Typical top rate | Note |
|---|---|---|
| Germany | Up to 50% | Progressive, spouse/child allowances vary |
| Spain | Up to 34% | Regional rules affect relief |
| France | Up to 60% | High rates for distant heirs |
“We recommend early, specialist advice. Treaties differ and paperwork matters.”
In short, double taxation is real but manageable. Seek focused cross-border tax advice early to protect beneficiaries and speed administration.
Inheritance tax planning strategies for returning expats
Timing matters: gifts made today can change the tax picture years from now.
We start with gifting because it is simple and transparent. If you survive seven years after a gift it may escape inheritance tax. Keep clear records so executors can report transfers correctly.
Gifts and exemptions
The annual allowance lets you give £3,000 each tax year. You can carry forward one unused year once. Small yearly gifts add up and reduce the taxable pool over time.
Taper relief and the seven‑year rule
Gifts made three to seven years before death may qualify for taper relief. Taper lowers the tax due, but it does not reduce the value transferred.
Trusts and excluded property
Trusts can protect beneficiaries and control how assets pass. They also bring extra reporting and periodic charges.
| Tool | Benefit | When to use |
|---|---|---|
| Lifetime gifts | Clear transfer if survive 7 years | When you can give away assets |
| Annual allowance | Tax-free yearly transfer | Regular small gifts |
| Discretionary trust | Control for beneficiaries | Protect vulnerable heirs |
| Excluded property trust | May keep overseas assets outside charge | Non-LTR status; review if LTR changes |
“Review any trust or gifting step before a move. Long‑term resident status can change outcomes.”
For a practical how-to on gifting, see our gift guide.
Pensions, death benefits and the April 2027 inheritance tax change
Pension pots and death benefits can reshape a family’s tax picture in ways many do not expect.
Why pensions have often sat outside the estate
Historically most pensions were outside the probate pool. Nomination forms and scheme rules let trustees pay beneficiaries directly.
Keep nominations up to date. A form aligns payouts with your wider wishes and avoids unintended consequences.
Death before and after age 75
If death occurs before age 75 beneficiaries can often receive pension funds tax-free, up to the Lifetime Small Defined Benefit Amount (£1,073,100).
After 75, withdrawals are taxed at the recipient’s marginal income tax rate. That difference changes cashflow and inheritance implications.
What changes from 6 April 2027
From 6 April 2027 most unused DC and DB pensions are expected to be included in the inheritance tax net at 40% above allowances. Scheme administrators may need to report and pay within 60 days of death. Transfers between spouses remain exempt.
Practical steps to consider
- Review pension wrappers and nomination forms now.
- Stress-test whether pensions move into the tax net and how that affects your wider plan.
- Check overseas pension treatment if you have foreign schemes; residency can change implications.
“Update nominations and model outcomes before April 2027 to protect beneficiaries and reduce administration risk.”
Repatriation timeline: what to do before, during and after your move
A staged checklist helps you focus on the actions that protect value and reduce delay.
Six to twelve months before
Confirm residency tests and consider split‑year treatment. Review offshore investments and bank accounts.
Audit pensions, including QROPS or consolidation into a UK SIPP where that suits your wider financial plan.
Three to six months before
Arrange UK banking and rebuild credit by joining the electoral roll. Check insurance and gather property and mortgage documents.
On arrival and the first 90 days
Notify HMRC where needed, register NI and update your payroll code. Keep travel and arrival evidence.
Quick wins: use the £20,000 ISA allowance and restart pension contributions to reduce near‑term tax exposure.
Within the first year
Align investments, wills and beneficiary nominations so everything works together. Reassess trusts and watch cross‑border tax and compliance risks.
When to book free consultation
Book free consultation if you have overseas property, complex pensions, trusts or unclear residency history. A short meeting can quantify risk and set priorities.
“A timely review cuts uncertainty and helps you protect what matters most.”
| Timeline | Key actions | Why it matters | When to consult |
|---|---|---|---|
| 6–12 months | Residency check, pension audit, asset review | Determines tax reach and transfer options | If you have multi‑jurisdiction pensions or high value assets |
| 3–6 months | Bank setup, insurance, property docs | Smooths access and reduces last‑minute stress | If mortgage or local registrations are needed |
| 0–90 days | HMRC notifications, NI, evidence logs | Builds compliance and avoids enquiries | When residency dates or payroll status are unclear |
| Within 12 months | Align investments, wills, nominations | Makes your plan work as one system | Book free consultation if trusts or double tax risks exist |
Conclusion
Small, well-timed steps today can protect more of your assets and make administration easier later.
Returning may change your exposure to inheritance tax and reporting duties. Start with four simple tools: an updated will, named executors, registered lasting powers of attorney and a clear map of UK and overseas assets.
Remember: the April 2025 long-term residence rules and the April 2027 pensions change can alter outcomes. Keep nominations current and review documents regularly.
Take a calm, step-by-step approach: confirm residency, identify what is taxable, then choose the right tools — gifts, trusts where suitable, and robust governance. Where multiple jurisdictions or higher values exist, seek specialist advice early to protect your family and preserve value.