In this article, I’d like to look into essential financial tips for Brits who have moved to Singapore or those with British assets. Whether you’re settling into the Lion City or just planning your financial moves, this article will help you navigate your finances smoothly.

Preparing Your Finances When Leaving the UK

If you’re leaving the UK, it’s crucial to manage your UK finances properly. Here’s what you should consider:

– Voluntary National Insurance Contributions (NICs):

 If you want to maintain your UK state pension or other benefits, think about making voluntary NICs. Check your National Insurance record and see if topping it up makes sense for your future pension entitlement.

-UK Pensions

Generally you are able to continue to make contributions to your UK pension scheme for the first five years while you are living overseas. Those contributions to your UK pension scheme can still qualify for tax relief; it is worth speaking to a wealth manager to understand the pro’s and con’s of continuing to make contributions to your UK pension scheme after you have left the UK.

– Closing UK Bank Accounts & Assets:

 Decide what to do with your UK bank accounts, investments, or property. Sometimes, it’s best to keep certain accounts open if they serve your needs, but be aware of any fees or restrictions. It is worth noting that, if you become non resident, you will no longer be able to make contributions to ISA’s (Individual Savings Accounts). However, unlike other ISA’s, if a Junior ISA is opened while the child is UK resident then your child can continue to make contributions to their Junior ISA even if they have become non resident.

– Tax Implications:

Selling property or assets in the UK may trigger capital gains tax or other liabilities. Consult a tax professional to understand your obligations and any reliefs available.

• Understand whether or not you will you become non UK tax resident. There are lots of different moving parts to that but major considerations for becoming non resident to discuss with a tax adviser are:

• Understanding the date you may become non UK tax resident.

• What that non UK tax residence status will mean for you.

• What sources of income and gains will continue to be subject to UK tax as a non UK tax resident?

• How much time can you spend in the UK and still remain a non UK tax resident?

• What other conditions you need to meet in order to become non resident and maintain a non resident status?

• How do you tell HM Revenue that you have left the UK?

If you remain non UK resident for more than five years that will then restrict your liability to UK capital gains tax to gains on UK land and property only. But, if you are non resident for five years or less you may remain chargeable to UK capital gains tax on gains arising on all of your worldwide assets. If you remain non UK resident for more than 10 years this could reduce your exposure to UK Inheritance tax; and in addition – give you access to the favourable foreign income and gains regime when you return which will then give you the opportunity to mitigate UK tax on foreign income and gains for the first four years.

Be aware of any tax implications and reporting requirements for your sources of income and gains in the country you become resident in.

UK Property and Taxes

If you sell a UK property, here are a few tax points to keep in mind:

– Capital Gains Tax (CGT):

 If the property isn’t your primary residence, or hasn’t been lived in as your primary residence for all of the time you have owned it, you might be liable for CGT. There are allowances and reliefs, so plan accordingly.

– Residency and Tax Status:

 Your tax liability depends on your residency status. Moving to Singapore may impact your UK tax obligations, especially if you’re no longer a UK resident.

– Reporting & Compliance:

• Make sure to report the sale correctly and consider any double taxation treaties between the UK and Singapore to avoid being taxed twice.

• If you let out your UK property while living overseas any profit could be subject to UK income tax. Even if there is no taxable profit the income and expenses will need to be reported to HM Revenue on a UK tax return.

• An agent or tenant will need to withhold 20% UK income tax on payments made to a non resident landlord even if that tax is not due unless the non resident landlord has signed up to HM Revenue’s Non Resident Landlord scheme.

• If you are thinking of purchasing a UK property as a non resident remember that non residents will face higher stamp duty charges for their purchase. If the property is going to be let out consider strategies to reduce the UK income tax payable on the profits arising.

Moving GBP to Singapore

Next, transferring your GBP into Singapore Dollars (SGD). I personally use OFX — it’s a cost-effective way to move money internationally with better rates than your bank.

• Why OFX 

  No transfer fees, competitive exchange rates, and easy online management. Plus, it allows you to set up regular transfers if needed.

• Tips:

  Shop around for the best rates, consider timing your transfers during favorable FX movements, and always double-check the transfer limits and compliance.

Investment Opportunities in Singapore

Now, let’s talk about investing in Singapore for growth and tax efficiency:

– Local Investment Options:

 Singapore offers a range of investment accounts, such as various apps accounts for stocks, ETFs, and bonds. The city-state is a financial hub, giving access to global markets.

– Offshore Accounts & Funds: 

Offshore investment accounts can offer tax benefits and diversification. Consider jurisdictions like the Isle of Man, Ireland or Guernsey, but always consult a tax professional.

– Tax Benefits & Incentives:

Singapore has no capital gains tax or dividend tax, making it attractive for investors. Certain investment funds or structures may offer additional tax efficiencies. Selling a UK property and investing the proceeds in an offshore investment account can offer several benefits, including potential tax advantages, increased diversification, and access to a broader range of investment opportunities. Offshore accounts often provide greater flexibility in currency management and can help optimise tax planning strategies. Additionally, this approach may enhance asset protection and enable investors to access international markets more easily, thereby potentially increasing overall returns and financial growth.

– Retirement & Pension Products: 

Explore Supplementary Retirement Schemes (SRS) or private pension plans that offer tax advantages.

Maximising Your British Assets & Finances

Finally, here are some tips to help Brits maximise their financial position in Singapore:

• Double Taxation Treaties: 

Take advantage of treaties between the UK and Singapore to avoid double taxation on income or gains.

• Estate Planning:

  Update your will to reflect your new residency and consider inheritance tax in the UK that you may be exposed to.

• Currency Diversification:

 Keep some assets in GBP if needed, but also diversify into SGD to hedge against currency risk.

• Other Tax Pointers

• Make sure you know how much time you can spend in the UK each year without becoming UK resident; the longer you remain non resident the less exposed your income and gains will be to the confiscatory and complicated UK tax system.

• Ensure you have considered how you can be tax efficient with your investments when you return to live in the UK; you may be able to invest as a non resident in ways that will reduce how much tax you pay when you do return to live in the UK.

• It is worth speaking to a specialist tax adviser well before you plan to move to the UK to consider what actions you can take as a non resident to reduce your future UK income tax, capital gains tax and inheritance tax liabilities.

• Professional Advice:

Engage with financial advisors familiar with cross-border issues to optimise your tax planning and investments.

That wraps up my guide on managing your finances as a Brit in Singapore. Remember, proactive planning is key to maximising your assets and minimising taxes. If you have questions or want personalised advice, reach out to a professional.