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?
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, which we cover in our next briefing.
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.
Stage 3 – When the employee has relocated to the UK and employment has started
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.