Pensions and Financial Advice for UK Expat

[Troy Tempest]

Dear All,

 

I was recently informed by my Financial Advisor that due to a change in the rules by UK FCA (Financial Conduct Authority) that as I am an Ex-Pat he can no longer take care of my financial affairs (without taking further courses/exams) which as I am one of only a few of his many clients he is unwilling to do.

 

To be fair he has never charged me any fees for managing any of my investments!

 

This concerns my pensions and other investments in the UK.

 

I have my own portfolio and trade online in addition to the funds I had invested via his company, but the monies I held with him were long term/death benefit pensions and trusts for my family for when I "Kick the Bucket"!

 

I have trusted him implicitly since we were Best Mates at school so this has come as a bit of a blow.

 

I have lived in Thailand for over 12 years and have been registered as "Non-Resident" with HMRC for tax purposes throughout.

 

Please can anyone offer a reliable alternative?

 

I thank you in advance for any replies!

 

[CharlieH]

MOVED TO UK sub forum of Home Country

[Oxx]

I know of only one IFA that will deal with non-residents of moderate wealth (less than a few million), and that's https://www.sovereigngroup.com/

 

However, I think you're going to have to start managing everything yourself.  You're also probably going to have to start lying.

 

Starting with your "regular" investments, if the account is in your name, then you can carry on as normal, with your managing the account.

 

You won't be able to open a UK brokerage account to transfer them to unless when you open the account you lie about your residence status and give a UK address.  (They're most unlikely to check.)  You may then be able to transfer some of the investments in specie (i.e. without having to sell them).  Others you may need to sell and transfer as cash.

 

If your investments are over the IHT limit (GBP 325,000) you should probably take your money offshore.  It's pretty straightforward to open an account with brokers used to dealing with expats such as Swissquote, Interactive Brokers, Saxo, &c..  Your range of investment options, however, will be much more limited than with a UK broker (probably no funds, just shares, ETFs, Investment Trusts).

 

With the pensions, you've got more of a problem.  Perhaps you could go down the lying route and open a SIPP? Do check on any requirement to have a meeting with an IFA before making the transfer, though.

 

With the trusts, could you change trustees to ones with UK-residence so that advice could still be taken from your current IFA.

 

To be honest, I'm a bit surprised that if the IFA is your friend he can't lay out the available options, acting as a friend informally, not an IFA.

 

 

 

 

[nong38]

Very good advice given above. If you do take control yourself which is probably the best option be careful about addresses you use, if you can "use" one in the UK that will solve some problems but if you try and change them to a Thai one that might trigger an alarm and you will be forced to sell at a time not of your choice (the company might just sell them for you as you no longer comply with the current regulations ) so think carefully before acting.

[Troy Tempest]

Thank you Oxx and Nong38 for your replies.

 

I am already on the same page(s) as you!

 

My brokerage account is linked to my brother's UK address as are all my other banking and financial arrangements.

 

It seems that the best route might be to tell a few "Porkies" regarding where I actually reside when dealing with financial institutions in the UK other than HMRC which works in my favour as I do not have to pay capital gains on investments.

 

There is a plethora of companies offering pension management advice for Expats as I am sure you are aware, however they are nearly all based offshore and as such are not regulated by the FCA.....Many are very dodgy and I have heard lots of horror stories from friends in a similar position to myself regarding excessive fees, bad advice and even high losses when dealing with these companies!

 

For example QROPS sounds like a nightmare from what happened to one of my friends who was based in the Middle East for over 20 years!....He didn't lose the lot, but was severely impacted by the "Pension Management Company". He was charged ridiculous management fees.

 

They are now talking huge amounts just to release his funds back to him now he has retired and lives back in the UK.

 

I was searching for a company that is UK based and FCA approved with a good track record in dealing with non-resident UK customers such as myself!

 

My previous FA has said I can deal directly with the Pension company in the UK, but under no circumstances should I mention that I am non-resident in the UK.

 

It is a "Tricky Situation" to put it mildly! 

 

 

[chilly07]

Non resident for tax purposes in which country? Thailand has a tax agreement with the UK so you have to be resident for tax purposes in one country or the other? 

[topt]

2 hours ago, chilly07 said:

Non resident for tax purposes in which country? Thailand has a tax agreement with the UK so you have to be resident for tax purposes in one country or the other? 

Really?

You must have missed the multitude of threads on this on here.

 

I, like the OP, am non resident for tax with HMRC however I am still liable to pay taxes on certain income arising in the UK - property, pensions and other if above the Personal Allowance but not capital gains (other than property) as the OP mentions.

 

In theory as long as I don't bring in income into Thailand in the year it is earned I am liable for no tax here. In practice not something Thai revenue have enforced. Unless you register with Thailand Revenue to claim back tax on interest you wont therefore be "tax registered"

[Troy Tempest]

19 hours ago, topt said:

Really?

You must have missed the multitude of threads on this on here.

 

I, like the OP, am non resident for tax with HMRC however I am still liable to pay taxes on certain income arising in the UK - property, pensions and other if above the Personal Allowance but not capital gains (other than property) as the OP mentions.

 

In theory as long as I don't bring in income into Thailand in the year it is earned I am liable for no tax here. In practice not something Thai revenue have enforced. Unless you register with Thailand Revenue to claim back tax on interest you wont therefore be "tax registered"

Exactly the same as my position. I pay tax on pension withdrawals and on rental income from my properties in the UK, but I am not registered for tax in Thailand.

[Chomper Higgot]

TT,

 

reading your OP and posts in this thread it is clear you understand the major issues and are more than capable of self managing your investments.

 

Certainly stay away from anyone offshore offering to help with your pension(s).

 

The rest is quite straight forward though may require a lot of reading through online advice.

 

The one issue you should absolutely take professional advice on is your will, UK solicitors will provide that service regardless of your residence provided the assets are based in the UK.

 

 

 

 

[Troy Tempest]

On 12/24/2021 at 1:58 AM, Chomper Higgot said:

TT,

 

reading your OP and posts in this thread it is clear you understand the major issues and are more than capable of self managing your investments.

 

Certainly stay away from anyone offshore offering to help with your pension(s).

 

The rest is quite straight forward though may require a lot of reading through online advice.

 

The one issue you should absolutely take professional advice on is your will, UK solicitors will provide that service regardless of your residence provided the assets are based in the UK.

 

 

 

 

Thanks Chomper......Will sorted out a long ago by a UK solicitor.

 

My former FA in the UK has now arranged it for me to deal with the pension company direct. I had several work pensions all from different companies as I was in software sales and moved companies quite a bit.

 

He amalgamated all the different pensions into Aviva so it should be fairly straight forward from here!

 

Hope you had a great Xmas and and all the best for the New Year! 

 

[BritManToo]

Just now, Troy Tempest said:

He amalgamated all the different pensions into Aviva so it should be fairly straight forward from here!

So he earned a nice commission (from the transfers), then dumped you.

[Troy Tempest]

11 minutes ago, BritManToo said:

So he earned a nice commission (from the transfers), then dumped you.

On the contrary.....He never charged me any management fees or took any commissions!