Moving money across borders is rarely as simple as making a transfer.
Every country has its own tax rules, and without proper planning, you could end up paying far more than necessary – or worse, facing unexpected compliance issues.
International tax laws are designed to prevent base erosion and profit shifting (BEPS), meaning tax authorities are cracking down harder than ever on cross-border wealth movements.
For high-net-worth individuals, business owners, and expatriates, tax-efficient wealth transfer is not just about reducing tax – it’s about structuring assets to remain compliant while maximising financial flexibility.
Here’s how to do it properly.
Understand exit taxes before you leave
If you’re leaving the UK, you might assume your tax obligations end the moment you move.
Not true.
The UK has Capital Gains Tax (CGT) exit charges, meaning that if you dispose of assets while non-resident, you may still owe tax if you return within five years.
This is known as the temporary non-residence rule.
Failing to plan for exit taxes could mean a shock bill when you least expect it.
Before relocating, it’s essential to assess whether disposing of assets before or after the move would be more tax efficient.
Use double taxation agreements (DTAs) wisely
Double taxation treaties can prevent you from being taxed twice on the same income, but they don’t apply automatically – you need to claim relief via a tax return.
The UK has over 130 DTAs, each with different provisions covering income, pensions, rental income, and even inheritance.
Some agreements provide full relief, while others only reduce tax liability.
Misinterpreting these rules could mean overpaying tax in two countries when you don’t need to.
Offshore trusts: Are they still viable?
Offshore trusts used to be the gold standard for tax planning, but recent changes have made them far less effective for UK taxpayers.
UK tax authorities now apply ‘look-through’ rules, meaning that even if the trust itself is offshore, UK residents may still be liable for tax on gains and income.
That said, excluded property trusts (EPTs) still offer a legal way for non-UK domiciled individuals to protect non-UK assets from Inheritance Tax (IHT).
The key is to establish the trust before becoming UK domiciled.
Timing matters for remittance basis users
If you’re a UK non-domiciled resident, you can choose the remittance basis, which means you’re only taxed on UK income – unless you bring foreign income into the UK.
But accidental remittances are common and costly.
Even something as simple as paying for a UK expense with offshore income can trigger an unexpected tax bill.
Working with an adviser can help you avoid these pitfalls by structuring offshore income properly.
Corporate structures for international wealth
Holding assets via foreign companies can be tax-efficient, but it’s not a magic bullet.
The UK’s Controlled Foreign Company (CFC) rules allow HMRC to tax retained profits in foreign companies controlled by UK residents.
For property investors, using a non-UK company to own UK real estate is no longer a surefire tax-saving strategy.
Since 2020, these companies have been subject to Corporation Tax on rental profits and gains.
Plan ahead before it’s too late
If you’re thinking of moving wealth internationally, waiting until after you’ve made the transfer is a mistake.
The best tax-saving opportunities often come before you move – once assets have been transferred, your options narrow significantly.
Too many people come to tax advisers after they’ve hit a problem.
They’ve unknowingly triggered a tax charge, lost eligibility for a tax relief, or structured their wealth in a way that limits their flexibility.
At that point, the only solution is damage control.
Proper international tax planning is not just for the ultra-wealthy either.
If you’re moving assets across borders, buying overseas property, or considering a move abroad, you need to know how to structure things tax-efficiently before you act.
It’s easy to assume that hiring an adviser is an unnecessary expense, but in reality, a proactive tax strategy can save you far more than it costs.
