ChiFRA

These have been challenging times, but hopefully as the restrictions are lifted, we can start to enjoy more freedoms and adjust to the ‘new normal’.  Many people will still be at home more than usual though and continue looking for positive ways to spend this time. While home improvements, baking or learning a new skill are usually top of the list, this is also a good opportunity to tend to your financial wellbeing.

With the Brexit clock still ticking, expatriates in particular can benefit from using this time to fine tune their tax, pensions and estate planning. Here are some key considerations.

Expatriates stuck in the UK due to the current health pandemic may unintentionally trigger UK tax residence – but HMRC’s ‘exceptional circumstances’ rule may prevent an unexpected UK tax bill.

As most of us enter another week of coronavirus lockdown, staying at home has become the new ‘normal’. However, the reality for many UK nationals living in Spain is that ‘home’ is in more than one country.

An increased State Pension, more generous pensions taper relief and a new stamp duty for non-UK residents. What were the key takeaways from the UK Budget that may affect expatriates in 2020/21?

Unsurprisingly, the first UK Budget of the decade – and for new Chancellor Rishi Sunak – was dominated by coronavirus concerns. Unveiling a £30 billion spending package, Sunak asserted he would do “whatever it takes” to get the country through these difficult times.

But what is set to change in April 2020 that may affect UK nationals living in Spain?

UK nationals living in Spain or owning Spanish property can feel reassured that little will change while the Brexit transition period is underway. But with no certainty beyond 2020, time is running out to secure your position and lock in guaranteed protection.

What is at stake?

If you are lawfully settled in Spain before 31 December 2020, you can acquire guaranteed citizens’ rights under the UK/EU Withdrawal Agreement. This provides the right to remain indefinitely and access the same social security, education and employment opportunities as today, for as long as you remain resident in Spain. You would also be entitled to existing Spanish healthcare benefits and annual cost-of-living increases to the UK State Pension.

However, anyone arriving from 2021 may have restricted movement in Spain and be subject to a new residence regime to access similar rights. While the post-Brexit residence rules are yet to be confirmed, the requirements may be more stringent and the process more complicated than today.

As such, there is everything to gain by taking steps now to become Spanish resident and come under the protection of the Withdrawal Agreement.