Senior Executives: thinking of relocating to the UK?
We answer common questions raised at key stages of the relocation process.
Forsters’ SenEx Advisory Group regularly advises internationally mobile company executives and professionals when a move to or from the UK is being considered. The move triggers many questions, some of which are based on common misconceptions about the UK’s tax, immigration and employment regimes.
In this series of Q&As we share answers to the questions commonly asked at each stage of the relocation process and seek to dispel some of those misconceptions.
Stage 1 – Considering the employment offer, negotiating the contract and package
- I’ve been offered a new role in the UK: what are the key terms that I should expect to see and which should I try to negotiate?
- By accepting a new role in the UK, I shall be treated as a “bad leaver” by my current employer and forfeit significant equity and deferred payments: is there anything that I can do?
- Will I be subject to tax on my worldwide income and gains if I become tax resident in the UK?
- I hear that it can be a common practice to have dual employment contracts: one in the UK, and the other abroad. What's this all about?
- I have some existing share options which have vested but I have not yet exercised them? What should I do about them?
- I am a private equity executive with carried interest in a fund I manage. Is there a way to improve my tax position in respect of this carry, or is this prevented by the UK’s new tax rules aimed at private equity?
Stage 2 – Offer accepted, planning to relocate to the UK
- Is there any pre-arrival planning I should do or can I settle in first?
- Will I be UK tax resident from the day I arrive in the UK?
- What is considered a day?
- What are the key employment law differences that I should be aware of?
- Can I come into the UK as a visitor and work or carry out business?
- What type of LTIP is typically offered to senior executives in the UK?
Stage 3 – When the employee has relocated to the UK and employment has started
- I assume I can't get naturalised as a British citizen and obtain a passport if I want to remain non-domiciled?
- What factors other than citizenship will be taken into account in determining my domicile status and, if I do become UK domiciled, can I reverse the position?
- I am being offered Crypto tokens as an incentive by my employer. How will I be taxed?
- I've bought a UK property, as my job will keep me here for 5 years or more. I have put a Will in place as my conveyancer suggested to deal with the house. It covers all my assets, including my assets in France, where I remain domiciled.
- Once I become UK resident, can I avail myself of the remittance basis in respect of any income or gains arising on my cryptoassets?
- I have old US stock options granted 2 years ago by my then US employer over shares in the US top company of the group granted when my duties were solely in the US. I am now employed by the wholly owned UK subsidiary: do I pay UK taxes on vesting?
Stage 4 – Moving on from the UK
- I have Indefinite Leave to Remain (ILR) in the UK having permanently resided here to work as a C-suite executive for a number of years. I’m considering a new employment opportunity abroad. What’s the impact on my ILR if I leave the UK to take up this new role?
- Your employer has indicated that they no longer require you to work in the UK – what should you think about?
- By becoming a non-resident in the UK, do I escape the tax net?
- I bought a property in the UK in my name while I was here. I am undecided whether to sell it or keep it – what UK tax considerations should I bear in mind?
- How will my cryptoassets be affected if I were to move country?
As showcased in these Q&As there are a wide range of matters to contend with when considering relocation. Beyond the primary career opportunity, there are employment and fiscal implications. There are also immigration issues to consider.
It is imperative to seek independent advice early in the process; this will help to ensure the relocation and remuneration package is structured to best suit individual circumstances and take advantage of any cross-border reliefs such as relevant Double Tax Treaties that could mitigate the same income being taxed in two different jurisdictions where an individual is employed in one jurisdiction but spends significant time working in another.
Please do contact any member of our Sen Ex Advisory Group to suggest a question or to find out more about how we can help.
Individuals and families intending to relocate to the UK should ensure they undertake pre-arrival tax planning in advance of a move, so that their affairs are arranged as efficiently as possible for UK tax purposes.