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Proving Residency and Identity for UK Expats Following Brexit

Information for expats living in the EU

The Gov.uk website offers assurances to to expats and those living and working abroad, that currently there is no change to the status of UK nationals living in EU countries but stresses the importance of ensuring they are correctly registered as a resident in the country where they are based.

The Brexit Withdrawal Agreement of January 2020 protects the rights of UK citizens, and clearly states that when member states require a UK national to apply for residency, the process will be “transparent, smooth and streamlined”.

For any updates around the ongoing relationship between the UK and the EU, it is advised that, if possible, expats should follow their local British Embassy on social media.

Are there potential residential complications for expats?

Reports released prior to the Withdrawal Agreement, however, demonstrated that in some cases, streamlined transparency might not always be the case. Despite the recent information suggesting otherwise, this lingering doubt has led to expats continuing to express concern around the processes, and that proof of residency and identity may not be as “smooth” as they would like.

This is compounded by the way the British press regularly published stories, prior to the agreement, highlighting the apprehension held by expats in the EU.

One such news report in the Express (1 Aug 2018), with the headline ‘We become ILLEGAL immigrants overnight!’ British expat fears Brexit backlash, detailed the fears of expats who had contacted Sky News following warnings, made by Jeremy Hunt, in the midst of Brexit negotiations. The UK may have agreed a deal with the EU, but not many expats are quick to forget the anxiety of the last few years.

Added to this, anecdotal evidence has already shown that the UK Burgundy Passport is being scrutinised more heavily when used as a form of ID, and in certain cases its use has already caused hold-ups and special checks regarding its validity as an acceptable proof of identity.

Blacktower’s advice to our clients is, first and foremost, to apply for residency as a matter of priority and then seek expat financial advice about whatever is worrying you; whether it’s expat pensions, QROPS, tax obligations and tax planning following Brexit or any other aspect of your expat wealth management.

We can help you understand the current climate and, where necessary, help you create your own personal financial plan for post-Brexit residency.

Disclaimer: This communication is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice form a professional adviser before embarking on any financial planning activity.

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

British expats in EU want pensions clarity

There has never been a better time than now for British nationals living in the EU to consolidate their retirement plans by properly investigating their expat pensions options.

Post-Brexit, sterling has fallen dramatically against the euro and for many the uncertainty surrounding expat pensions is causing understandable anxiety.

Currently, British expats living in the EU receive an annual rise in the state pension; however, this could change in the post-Brexit environment, meaning that many face the prospect of frozen pensions and as a result are giving serious consideration to the idea of returning to the UK.

While these uncertainties are not to be dismissed lightly it is worth remembering that exit negotiations are yet to begin and freedom of movement and state and expat pensions are all likely to be issues for discussion once talks do start.

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RTC Deadline Looms

Clocks and TimepiecesTime is fast approaching for UK taxpayers and expats with UK tax obligations to ensure they meet the 30 September 2018 deadline laid down by HMRC for the declaration of all UK tax liabilities on overseas income and assets that fall under the auspices of the Requirement to Correct (RTC) legislation, Finance (No 2) Act 2017.

Non-compliance, even if it is inadvertent, has the potential to be met with uncompromising penalties, so anyone who is any doubt about their tax obligations regarding offshore investments – if you have expat regular savings or wealth management concerns outside of the UK – should contact their financial adviser immediately as a matter of urgency.

The penalty for most breaches is 200% of the tax that has been avoided. However this may be reduced to 100% depending on the taxpayer’s perceived level of compliance. That said, the minimum is 150% in cases where disclosure has been prompted by HMRC. Larger non-disclosures may be punished by further penalty of 10%

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