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Research conducted by an offshore consultancy has revealed Two-thirds of British expats who return to live and work in the UK earn less than they did overseas, but the vast majority say they managed to acquire more personal wealth while they were abroad than their counterparts back home.

According to the research, contained, 67% of the 263 returning British expats surveyed in the fourth quarter of last year said they came back to a lower annual income than they enjoyed overseas.

However, 78% of those polled via phone interviews, email responses to questions and their face-to-face meetings believed that they were in a “better personal financial position” than when they left, and said they had saved more than their contemporaries who remained in the UK.

In addition to earning less upon their return, the research found that returning Brits are paying out more too. This is mainly due to the UK taxing its citizens at a higher rate than most popular expat destinations. Many also enjoyed additional expat benefits while abroad, such as employer-sponsored accommodation and education allowances that were lost when returning to the UK.

More than three-quarters believe that they have accumulated more savings while they were overseas, compared to their friends, family and colleagues in the UK.

The research also found that the typical returning British expat takes more than six months to consider his or her investment options.

Three months to settle

The research also identified that most expats coming back to the UK, the first three months is usually about moving into their old home or looking to rent or buy a new property, starting with a new employer, and settling their children into a new school.

The moving process includes exploring options of repatriating money back to the UK, finalising tax payments in the country they were living, and ensuring that emergency tax in the UK is paid before their employer and HM Revenue & Customs arrange their tax code.  In addition to ensuring all investment companies are updated with the individual’s new address and contact details.

From month four onwards, most expatriates reported that their UK taxes have all been organised, and if they are going to buy a new property, they generally will have the mortgage arranged within the first six months. Around the seven-month mark, most returning expat clients have begun to think about UK pensions, life cover, wills, and UK investment opportunities, such as ISAs.

This article is for information purposes only and does not constitute advice. All views in this article are opinions of the Expats Pensions team. We specialise in helping people that have left the UK evaluate the possibility of taking their UK pension with them. For further information please visit http://www.expatspensions.com