More UK clients are choosing to live, work or retire overseas. Europe remains a popular destination, while the United States and Dubai continue to attract internationally mobile professionals, entrepreneurs and families.
For UK financial advisers, this presents an important challenge. A client may have valued and trusted their advice for many years, but becoming resident in another country can fundamentally change their financial planning requirements.
Different tax systems, regulatory frameworks, pension rules and investment restrictions may apply. Arrangements that were suitable while the client lived in the UK may need to be reassessed once they move abroad. The tax treatment of their pensions and investments could change, while local reporting requirements, succession laws and estate-planning rules may introduce further complexity.
Without appropriate planning, clients can face unexpected tax liabilities, unsuitable financial arrangements or difficulties accessing ongoing advice. Advisers must therefore consider not only where a client lives today, but also where they may live in the future.
Recognising the need for local knowledge
Cross-border financial planning requires more than a general understanding of international finance. It demands knowledge of the rules in both the client’s country of origin and their new country of residence.
The treatment of UK pensions, investment accounts, insurance-based arrangements and other assets can differ considerably between jurisdictions. A product that is tax-efficient in the UK may not receive the same treatment overseas. Clients may also find that certain investment funds or financial institutions are unable or unwilling to serve them after they relocate.
Regulatory permissions are equally important. Depending on the client’s destination the nature of the advice and their personal circumstances, a UK adviser may no longer hold the permissions required to provide regulated advice once the client becomes resident overseas. Even where some continuing service is possible, the adviser may not have the local knowledge or access to appropriate solutions needed to address the client’s new position.
This can leave advisers facing a difficult decision. They naturally want to protect a valuable, longstanding client relationship, but they must also recognise the limits of their permissions and expertise.
Protecting the relationship you have built
An international move should not automatically mean losing a client relationship that has taken years to build. With the right international partner, advisers can help clients access the specialist cross-border and in-country advice they require while maintaining continuity wherever appropriate.
For 40 years, Blacktower Financial Management has helped individuals and families manage the financial implications of living internationally. Our international footprint and cross-border experience allow us to support clients before, during and after an overseas move.
Rather than allowing relocation to create uncertainty or a break in service, UK advisers can introduce their internationally mobile clients to an established advice business with experience across Europe, the United States, Dubai and other key international markets.
The intention is to work collaboratively. The client gains access to relevant international and local expertise, while the relationship established by the UK adviser is recognised and respected.
After all, a client’s financial life does not stop at the UK border, but the rules governing their pensions, investments, taxation and estate planning can change considerably when they move overseas. Advisers may have spent many years earning that client’s trust, and the relationship should not be placed at risk simply because the client relocates.
By working with an experienced cross-border advice business, UK advisers can help their clients make the transition with greater clarity and continuity. Blacktower can provide relevant international and local expertise required while working collaboratively with the adviser who introduced the relationship.
Planning before the move
The most effective time to consider the financial implications of relocation is usually before the client changes residence. Decisions made in the months leading up to a move can have a lasting effect on how the client’s income, investments, pensions and estate are treated.
Early engagement provides time to understand where the client intends to live, when their tax residence is likely to change and how their existing arrangements could be treated in the destination country. It also creates an opportunity to examine future income and spending requirements, currency exposure and the location of assets.
Pension arrangements may require particular attention. The way pension income, withdrawals or lump sums are taxed can vary between countries, while applicable double taxation agreements must also be considered. Investment portfolios may need to be reviewed to establish whether the underlying holdings remain appropriate, accessible and efficient once the client is resident overseas.
Estate planning is another important consideration. Local succession rules, inheritance taxes and the treatment of wills can differ substantially from those in the UK. These issues become even more complex when a client owns property or holds assets across several jurisdictions.
Addressing these matters early may help identify potential difficulties before they become harder or more expensive to resolve.
Supporting clients beyond their first move
For internationally mobile clients, cross-border planning is rarely a one-off exercise. Their circumstances may continue to evolve as they change countries, develop businesses, sell assets, receive inheritances or approach retirement.
A client moving from the UK to Europe today may later return to Britain, relocate to the United States or divide their time between different countries. Their financial arrangements must therefore remain flexible enough to respond to further changes in residence, regulation and personal objectives.
Regular reviews are essential. They allow advisers to consider whether arrangements remain appropriate, whether legislative developments have altered the client’s position and whether their longer-term goals have changed.
An opportunity for the advice profession
International mobility is becoming an increasingly important consideration for UK advice firms. Advisers are more likely to encounter clients whose careers, families and financial interests extend across multiple jurisdictions.
The firms best placed to support these individuals will be those that recognise when specialist help is required and establish trusted international relationships before a client announces an imminent move.
A professionally managed introduction can protect the client, support appropriate regulatory outcomes and preserve the value of the original adviser relationship. Most importantly, it provides continuity at a point when many aspects of the client’s financial life may be changing.
When clients move overseas, their advice needs to move with them. Through collaboration between UK advisers and experienced international specialists, relocation can become an opportunity to strengthen the client relationship rather than bring it to an end.
John Westwood is founder and group chairman of Blacktower Financial Management
Important information: This article is intended for professional advisers and is for general information purposes only. The availability of services is subject to applicable regulatory permissions and the client’s individual circumstances. Specialist tax or legal advice should be obtained where appropriate.
