Contact

News & Insights

Expats must consider school fees planning

Short of uprooting entirely and returning to the UK in order to place their child in a state comprehensive (a potentially traumatic and logistically fraught situation if ever there was one), there sometimes seems little that parents feeling the squeeze on their private education funds can do.

Of course, there are other education and school fees planning strategies available – for example, taking children out of boarding school and relocating them into a school abroad – but these options are also potentially traumatic and in most cases unrealistic.

Fortunately, though, there are some positive signs that schools are becoming more flexible and sympathetic to those in these circumstances, with figures indicating that schools are assisting more than ever before to help support the private educations of middle class families who are struggling to meet the costs of above inflation private school fee increases.

“Fees have gone up disproportionately relative to incomes,” Susan Hamlyn, director of the Good Schools Guide recently told the Financial Times.

Figures from the Independent Schools Council reveal that last year private school parents in need were offered a combined £850m in grants and bursaries, with more than £700m coming directly from school’s funds.

In fact, close to 30% of students now receive financial assistance, with the average figure nearly £5,500 a year.

“The sector is responding to the challenge of affordability with a significant increase in the level of fee assistance and means tested bursaries,” commented David Goodhew, head of Latymer Upper School in London.

One factor in the rise of school fees is doubtless the popularity of British private education among the international community of individuals of high net worth. Quite simply, whether they are from China, Russia, Hong Kong or Arab countries, they are prepared to pay more in fees and therefore make it harder or those less able.

However, it is important to remember that with careful wealth management and the right financial advice it is possible for expats to make intelligent long-term education and school fees planning decisions that will stand the test of time.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Moving to Portugal – Important matters to consider

InvestPortugal offers an attractive regime of taxation to European Nationals considering a move here.

The regime is entitled (NHR) which stands for Non-Habitual Residents. Uncommon with other EU nations, a flat rate of taxation at 20% is applied to income derived in Portugal and a near total exemption for international income. For most European nationals, the NHR regime offers a simple and efficient residency programme.

The absence of wealth, inheritance and gift tax, coupled with a residency permit which allows free movement within the Schengen area, makes NHR extremely popular.

Read More

No More Tax Exemptions

No More Tax ExemptionsHands up if you still own a property in the UK, but have residential status in Tenerife, or indeed anywhere else in the world?  

If you’re one of the many thousands of expats, who decided to keep a foothold in the UK property market, ´just in case´, then potentially, you may well be out of pocket when you decide it´s time to sell.   This is yet another one of the latest steps in a series of significant changes affecting the taxation of UK residential property in recent years.   Up until the 6th of April 2015, non-UK residents have always enjoyed being exempt from Capital Gains Tax (CGT) on private residences, and also had the right to claim Private Resident Relief… regrettably for many, this is no longer an option – the rules have now changed!  Capital Gains Tax (CGT) has been extended to non-UK residents with effect from the 6th of April this year.  

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: