The 2015 Expatriate's Guide to Living in the UK by The Expatriate's Guide to Living in the UK

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The 2015 Expatriate's Guide to Living in the UK

A product of Supporting International HR Professionals Worldwide

CONTENTS Page 3

Banking

Page 5

Clothing Conversion Chart

Page 6

Clubs

Page 8

Dual Career

Page 9

Driving

Page 12

Education

Page 22

Embassies & High Commissions

Page 29

Healthcare

Page 31

Immigration & Residency

Page 36

Insurance For Drivers

Page 39

Legal Considerations

Page 42

Property

Page 44

Serviced Apartments

Page 49

Tax

Page 56

Travel Publisher: Helen Elliott Telephone: 020 8661 0186 Email: helen@expatsguidetotheuk.com Publishing Director: Damian Porter Telephone: 01737 551506 Email: damian@expatsguidetotheuk.com PO Box 921, Sutton, SM1 2WB Original cover designed by Chris Duggan

A product of Supporting International HR Professionals Worldwide

BANKING IN THE UK Moving to a new country can be an upheaval and so it makes sense to try and make the move as hassle-free as possible. For most, keeping your finances in check is at the top of the list of priorities. It would be reassuring to know that once you have arrived in the UK you could check your bank balance, or transfer money between accounts in an instant, and pay bills quite possibly in different currencies. When coming to the UK there are a host of banking options to consider, for example, whether the inpatriate’s requirements are for an onshore or an offshore bank account. It makes sense to select a banking service that suits your personal circumstances; from traditional current accounts, which come with a cheque book and debit card, to deposit interest-earning accounts, currency accounts and longer-term savings options. You can opt for accounts that are free from a standard account charge but will carry charges should you go overdrawn or exceed an agreed overdraft facility. If you have a healthy balance, then look for a current account that pays interest on credit balances. Such accounts were historically few and far between, but the competition in this area has intensified in recent years. There are also regular saver accounts, which pay a competitive rate of interest so long as you pay in a minimum amount each month – although there is normally a cap on the amount you can deposit each year. We live in the internet age and many people today think nothing of logging onto their computer to carry out their day-to-day banking functions. Email and mobile phones are symptomatic of the way we live today in a fast-paced world that barely seems to pause for breath. Customers value the ‘anytime, anywhere’ control that it gives them over their banking. While many people still choose to bank in branch, online and mobile banking offers customers the chance to manage their money from the comfort of their home, work, or even on the move via a smartphone. Customers can set up, change and cancel payments, whether individual or regular, transfer money between their accounts, and in

some cases analyse their spending. There have been numerous tales of internet banking fraud but British banks have embraced state of the art technology to help reduce the risk of online fraud. Efforts by the cards industry to enhance the security of payment systems delivered substantial falls since fraud peaked in 2008. In most cases, banks provide customers with a free card reader which helps confound fraudsters and protect customers’ accounts. It is simple to use allowing customers to securely access their account online and complete payment transactions. Despite the increasing take-up of online banking services some of you will still want to pop into a local branch and talk to a member of staff so it might be worth checking whether the bank of your choice has a branch in the town or city where you are planning to live. For a more personal experience a number of banks will offer, subject to eligibility, a Relationship Manager or a team dedicated to them. Customers will have the comfort of having a single point of contact and have the opportunity to build a relationship with someone who understands their needs. Getting a bank account up and running as quickly as possible is likely to be a priority for many. For starters, you will want to have the convenience of being able to pay for goods and services with a debit card in a local currency, as well as being able to withdraw cash. If you are coming to the UK to work, you will want to arrange for your salary to be paid in to the new account too. Opening an account will require you to pass certain due diligence requirements. UK banks will generally require new customers, both domestic and foreign, to provide specific documents that verify their UK address in addition to documents that verify their identity. Having a passport and driving licence are standard proof of ID, but proof of address can cause problems as many will not yet have a permanent place to live upon arrival in to the UK. Even if this is not the case, you are unlikely to have any utility bills to speak of straight away, as these are often sent every three months. There are a number of banks that work with Corporate 3

Employers to assist employees with these types of issues when relocating to the UK. People moving to the UK are unlikely to leave their old life behind completely. For many it may be a temporary assignment with continuing financial commitments in their country of origin, such as bills to pay. A multi-currency account can provide you with the option to keep your income in the currency needed to accommodate your financial commitments - and possibly earn interest in one place too. Likewise, paying a bill in a different currency is generally not a problem as long as the account can support multiple currencies. Paying a bill in the correct currency could avoid transaction fees and fluctuating exchange rates. For expats intending to stay in the UK for longer, the relationship with a UK bank can be more than just a bank account. You may want a mortgage or somewhere to save and invest your capital over the longer-term. Moving to a new country will be a time of great excitement and you will want to take it all in. It would be a shame if problems with routine matters such as paying bills and transferring money

detracted from the experience. It makes sense for people who are moving to the UK to start to consider their banking needs in the weeks before their arrival. With foresight and a little planning a bank account can be opened before you land on British soil. For more information please visit our website www.natwestglobal.com for more details on the accounts on offer or contact Neil directly on +44 (0)1245 355 628. The Global Employee Banking service is offered by National Westminster Bank Plc. Registered in England No. 929027. 135 Bishopsgate, London, EC2M 3UR. National Westminster Bank Plc. is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our services are not offered to any person in any jurisdiction where their advertisement, offer or sale is restricted or prohibited by law or regulation or where we are not appropriately licensed. Calls may be recorded. Internet e-mails are not necessarily secure as information might be intercepted, lost or destroyed. Please do not e-mail any account or other confidential information.

The Expatriate's Guide to Living in the UK The 2015 Ex Guide to L patriate's iving in th e UK

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The 2015 Expatriateâ&#x20AC;&#x2122;s Guide to Living in the UK please email damian@expatsguidetotheuk.com Please also view our new website

www.expatsguidetotheuk.com for useful information and links for expatriates of all nationalities who are moving to, or living in the UK A product

Supporting Internation al HR Profe ssionals World wide

clothing conversion chart

Clubs for Expatriates Northwood Area Women’s Club (NAWC) www.northwoodareawomensclub.co.uk

EXPATRIATE & WOMEN'S CLUBS – LONDON AND SURROUNDING AREA American Professional Women in London www.meetup.com/american-professionalwomen-london

Petroleum Women’s Club of London www.pwc-london.org St Johns Wood Women’s Club www.sjwwc.co.uk

American Women of Berkshire & Surrey www.awbs.org.uk

Thames Valley American Womens Club www.tvawc.com

American Women’s Club of London www.awclondon.org American Women of Surrey www.awsurrey.org

Zonta International www.zontalondon.org & www.zontaguildford.org.uk

Australian Women’s Club in London www.awclondon.org.uk

WOMEN’S CLUBS – REST OF UNITED KINGDOM American Expats of North West England www.expatsnw.co.uk

Chilterns American Women’s Club www.cawc.co.uk

American Women's Club of Dubin, Ireland www.awcd.net

Association of Turkish Women in Britain www.atwib.org.uk

Canadian Women’s Club www.canadianwomenlondon.org

American Women’s Club of Central Scotland www.awccs.org

Daughters of the American Revolution National Society, Walter Hines Page Chapter, NSDAR (London) www.dar.org/natsociety/overseas.cfm

Association of American Women of Aberdeen www.awaaberdeen.org Dutch Women of Surrey (DWS) www.dutchwomenofsurrey.co.uk

Federation Of International Women's Associations In London (FIWAL) www.fiwal.org.uk

International Women’s Club of Edinburgh www.iwce.co.uk

North American Connection – Midlands UK www.naconnect.com

Federation of American Women’s Clubs Overseas (FAWCO) www.fawco.org

Petroleum Women’s Club of Scotland www.pwcos.com

Focus Information Services www.focus-info.org

The Edinburgh Expat American Meetup Group www.american.meetup.com/210

Hampstead Women’s Club www.hwcinlondon.co.uk

POLITICAL – US Democrats Abroad UK www.democratsabroad.org.uk

Italian Cultural Association (Il Circolo) www.ilcircolo.org.uk Junior League of London www.jll.org.uk

United-Kingdom Federal Voters Assistance Program www.fvap.gov

Londres Accueil www.londresaccueil.org.uk

Republicans www.republicansoverseas.uk

Kensington & Chelsea Women's Club www.kcwc.org.uk

Overseas Vote Foundation (OVF) www.overseasvotefoundation.org

To feature in this section next year, email: helen@expatsguidetotheuk.com

New Zealand Women’s Association www.nzwa.co.uk 6

Dual Career Dual career couples are couples who both have a career and want to continue to work and progress in their respective fields. Dual career is often an issue for couples raising children, but it becomes a bit more complex when one spouse takes on an assignment abroad. An international move may affect a person’s career continuity; and one of the biggest challenges in a new country is to acquire an understanding of the local job market and all the opportunities that are available to ultimately find a job that one is passionate about and that fits with a new lifestyle. This transitional time will probably be filled with wonder, impatience, frustration and excitement and these emotions will appear in various degrees. Whilst job searching is usually not an easy experience at home, it can be made more difficult when in another country where the methods or approach to job searching may be different. Before beginning a job search, there are many issues which are important to consider: • Permission to work in the UK • Transfer of qualifications • Possibility of career progression • Career portability.

have, and where they were obtained, you may or may not be able to practice here in the UK. Some areas which may prove more difficult are law, medicine and taxes. For information on how your qualifications may transfer, the UK NARIC (www.naric.org.uk) is the National Agency responsible for providing information, advice and expert opinion on vocational, academic and professional skills and qualifications from over 180 countries worldwide. Possibility of career progression Career progression is often an aspect that is left behind as people are more focussed on getting any job rather than getting the job that would help further their career. Ongoing learning and career development opportunities are fundamental for career progression and the new skills acquired while abroad should be capitalised upon once repatriated or moved to a new posting. Career Portability A portable career gives you the freedom to choose where to live and work without losing your professional identity. Moreover, it gives you the opportunity to have continuity in your career even though you move from place to place. If you are planning a career change then the international move can be the perfect time and excuse to do so. When considering choosing a portable career it is important to think about: offering products or services with a high global demand; utilising a wide skill set; having universally accepted credentials or degrees; and speaking multiple languages. It isn’t always easy to get the perfect job, especially when living abroad. Any experience gained outside the home country is incredibly valuable and will make you stand out from the crowd.

Eligibility to Work in the UK When applying for any kind of job, you will be asked if you are eligible to work in the UK and the answer will be crucial to employers as they decide whether or not to proceed to the next stage with your application. All Swiss nationals and Citizens of the member countries of the European Economic Area (EEA) have free access to enter the UK, work, study and claim state benefits. Other nationalities may need a visa to work in the UK. Dependent spouses, whose partners have permission to enter the UK through their work permit, are permitted to work by virtue of their visa. Partner VISAs are also available for the partner of visa holders complying with specified criteria. You will find detailed information on the Home Office website www.ukba.homeoffice.gov.uk

Career development has been one of the core services of FOCUS since being founded in 1982. For more information please visit www.focus-info.org

Transfer of qualifications Depending on the type of qualifications you 8

driving Driving in Great Britain (GB) on a licence issued in a European Community/ European Economic Area (EC/EEA) country All drivers must comply with British minimum age requirements. These are 17 years for cars and motorcycles, 18 years for medium sized vehicles and 21 years for large lorries and buses.

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your 66th birthday or for five years after becoming resident, whichever is the shorter period If you are aged 65 or over for 12 months after becoming resident. You must get a British driving licence in order to continue driving after these periods.

Notifying health conditions You must tell the DVLA about conditions which existed before you came to GB and which you may have already notified to the authorities, as well as any conditions you have recently become aware of. In most cases, the rules will be the same as those in other EC/EEA countries although there may be some differences. Higher visual standards apply for vocational drivers in this country.

European Community and European Economic Area Licences issued in the European Community and European Economic Area make up two groups that are treated equally. The full list is: Austria, Belgium, Bulgaria, Czech Republic, Republic of Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Romania, Portugal, Slovenia, Slovakia, Spain, Sweden and the United Kingdom.

Taking a driving test If you want to take a British driving test you must be normally resident in GB. However, if you have moved to GB having recently been permanently resident in another state of the EC/ EEA, you must have been normally resident in GB for 185 days in the 12 months prior to your application for a driving test and a full licence. To take a GB driving test you will need to either: • Apply for a GB counterpart licence (D58/2) by completing a D9 (available from embassies or the DVLA) and enclose your community driving licence, which will be returned to you. The provisional licence document is issued free of charge. However, the appropriate fee must be paid and your community licence surrendered in exchange for a GB one when claiming the full entitlement • Exchange your community licence for the • British equivalent and request the appropriate provisional entitlement.

Visitors If you hold a valid community licence and are visiting GB, you can drive any vehicle if your licence is valid. The appropriate full entitlement for the vehicle you wish to drive must be shown on your licence. Residents If you have a valid community licence, this will authorise you to drive in GB for the period set out below. Alternatively, you can exchange your licence for a British one at any time. Provided your licence remains valid you may drive in GB: Car and motorcycle driving licence holders (ordinary driving licence): • Until aged 70 or for three years after becoming resident, whichever is the longer period Lorry, minibus, bus driving licence holders (vocational driving licence) • Until aged 45 or for five years after becoming resident, whichever is the longer period • If you are aged over 45 (but under 65) until

Community licences issued in exchange for licences from elsewhere A community licence issued on the strength of a licence from a designated country will be valid 9

for driving in GB for 12 months only, and is acceptable for exchange purposes. A community licence issued on the strength of a licence from a non-designated country will be valid for driving in GB for 12 months only, but is not valid for exchange purposes. A licence from any country outside the EC/ EEA, which was originally issued on the basis of a community licence, will be valid for driving in GB for 12 months only, and is acceptable for exchange purposes. Evidence of the original EC/ EEA entitlement must be provided.

be allowed to drive as a full licence holder and provisional licence conditions will apply. If you do not apply for a provisional licence within the first 12 months you must stop driving and obtain a British provisional licence with a view to passing a driving test. Provisional licence conditions will then apply. If you are the holder of a vocational licence (minibus, bus, lorry entitlement) and a new resident, you must not drive large vehicles until you have passed the relevant GB driving test. Driving test candidates are required to pass a motor car (category B) test first before applying for provisional entitlement for larger vehicles.

DRIVING ON LICENCES FROM ALL OTHER COUNTRIES, AND STUDENTS ON A FOREIGN LICENCE If you are a visitor, resident or student in Great Britain (GB) and still have a driving licence issued in the country you have come from, there are certain conditions that affect how long you can drive, and what you can drive in Great Britain.

EXCHANGING YOUR FOREIGN DRIVING LICENCE If you are the holder of a foreign driving licence and want or need to change to a Great Britain (GB) driving licence there are certain conditions that need to be considered when applying. Applying for the exchange of your foreign driving licence If you want or need to change your driving licence for a GB driving licence, you must complete the application form D1 that is available from the Driver and Vehicle Licensing Agency (DVLA) form ordering service and Post Office速 branches. You will need to enclose original documentation confirming your identity and a passport style colour photograph. Send your completed application and the appropriate fee to DVLA, Swansea, SA99 1BT. If the licence being exchanged is vocational, and the original was issued in Jersey, Guernsey or the Isle of Man, you must also provide a D4 medical report form that must be completed by a doctor, ensuring that all the relevant questions are completed. If your vocational licence was issued in an European Community (EC) or European Economic Area (EEA) country you need only submit a medical report form if, on exchange, you are 45 years of age or over. This applies even if your vocational licence is still current. Application forms D2 and medical form D4 are available from the DVLA form ordering service.

Visitors You may drive vehicles up to 3.5 tonnes and with up to eight passenger seats, provided your full licence or driving permit remains valid for up to 12 months from the date of coming to GB. However, you may only drive large vehicles which have been registered outside GB and which you have driven into the country. Residents If you are the holder of an ordinary driving licence (car, moped, motorcycle entitlement) and provided your licence remains valid, you can drive any category of small vehicle shown on your licence for up to 12 months from the time you became resident. To ensure continuous driving entitlement a provisional GB licence must have been obtained and a driving test(s) passed before the 12-month period elapses. If you obtain a provisional licence during this period, you are not subject to provisional licence conditions e.g. displaying 'L' plates or being supervised by a qualified driver or being precluded from motorways. However, if you do not pass a test within the 12-month concessionary period you will not 10

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Premium checking service for holders of EC/EEA, Gibraltar and designated countries driving licence If you are the holder of a full EC/EEA, Gibraltar or designated country driving licence you can exchange it for the UK equivalent using a premium checking service.

Motorcycle licences from the Republic of Korea and Faroe Islands are not exchangeable.

South Africa As there are two types of South African driving licences, the following will apply: • The book of life, which is a driving licence and identity document: the licence part of the book will be stamped to say the applicant has exchanged their licence and the book returned to the person; for the book of life to be acceptable for licence exchange the applicant will need a letter of authority from the South African licensing authority • The photocard licence will be returned to the South African licensing authority.

Rules for exchange The following conditions must be met before a licence can be granted in exchange for a GB one: • You must be normally resident in GB and have a permanent address here • If you are a community driving licence holder applying for a British test at the same time as exchanging your licence and you have moved to GB having recently been permanently resident in another state of the EC or EEA, you must have been normally resident in GB for 185 days in the 12 months prior to your application for a full driving licence • Licences from the designated countries must be current at the time the application for exchange is received at DVLA: licences from the Isle of Man or the Channel Islands are acceptable for exchange if issued after 01/04/91.Those issued in any EC or EEA country may be valid for exchange even if they have expired • You must surrender your foreign licence which will be returned to the issuing authority • International driving permits are not exchangeable • Test pass certificates are not exchangeable except for those issued in Northern Ireland or Gibraltar when the test was passed within two years of the date of the licence application • Japanese licences must be accompanied by an official translation, available for a fee from the Consulate General of Japan at 101-104 Piccadilly, London W1V 9FN or 2 Melville Crescent, Edinburgh, EH3 7HW • Republic of Korea licences must be accompanied by an official translation from the Embassy of the Republic of Korea at 60 Buckingham Gate, London, SW1E 6AJ

Canadian licences If you are the holder of a Canadian licence you will receive automatic transmission only when exchanging for a British licence. This can only be upgraded to manual upon presentation of confirmation, from the relevant licensing authority, of a manual test being passed or a manual test is passed in this country. You must drive on the left hand side whilst in the UK Drivers Enquiries

Telephone: 0300 7906801 Address: Drivers Customer Services (DCS) Correspondence Team DVLA Swansea SA6 7JL. (To avoid delay with written enquiries it is important to use the correct postcode)

Please Note: For confidentiality reasons it is not possible to release driver numbers or personal details from your driving record via e-mail replies Textphone: Textphone for the deaf and hard of hearing Textphone users 0300 1231278 Website: www.dvla.gov.uk

www.direct.gov.uk/en/Motoring/DriverLicensing/ index.htm To contact the DVLA via email please visit the DVLA website above

EDUCATION: SCHOOLING While there are a variety of educational options available in the UK, there is no ‘one size fits all’ solution for the children of expatriate professionals on assignment here. This section of the Guide will describe these options and highlight some of the matters that should be considered by parents, relocation, or HR professionals working with these families. Schools are required to verify that children have the right to (free) state education, and so showing the appropriate passports and visas are a pre-requisite for admission to any state school. This now also applies to independent schools, where some have registered with the UK Border Agency to be ‘sponsors’.

the year they turn 5, until they complete their education at 16. In England and Wales, state (publicly-funded) schools are organised by local education authorities (LEAs). In many authorities, particularly in greater London, many ‘good’ state schools are over-subscribed. Each spring, LEAs publicise on their websites the timeline and deadlines for applications and allocation of places. Because of the popularity of some schools, most families who meet the criteria to be eligible to apply, tend to apply for places in more than one school, indicating the desired schools in order of preferences on their application. One of the criteria is that a family must show proof of residency within the LEA, which presents a challenge for expats who understandably prefer not to commit to a property until they know where their child is going to school. The LEA has an obligation to provide a school place for qualifying residents, but it may not necessarily be at the school that

English State Schools Compulsory education serves children ages 4-16, with an additional two years ending at age 18. Children must be in school during

is closest to the childâ&#x20AC;&#x2122;s home. Once the places are allocated, there are means for appealing the decision - procedures are also published on the LEA websites. For families arriving out of the registration season, they obviously can apply for places, but allocation will depend on where the vacancies exist. Free Schools are a relatively new concept in England introduced by the government in 2011 to allow for more parental freedom of choice. These are state-funded schools that have opted out of Local Authority Control, but rather are governed by non-profit charitable trusts, and they are academically non-selective up to the age of 15, after that they may set criteria for admission. These may be managed by parents, teachers, charities or businesses. Although they are subject to the same inspections as other state and independent schools, the jury is still out as to the quality of these schools, which, according to press reports, can very significantly. Despite that, many of the free schools are also oversubscribed. Faith Schools are long established with

Church of England, Roman Catholic, Jewish affiliation, and Muslim ties. These schools are state schools but with an emphasis on creed of the faith in question, and although admission may give priority to familyâ&#x20AC;&#x2122;s proven affiliation to that faith (for example proof of baptism), there is increasing pressure for these schools to become more inclusive of all. Academies are another relatively new model of state-funded schools, again, independent of the local education authority. Introduced by the Government in 2000, these may be established by companies, charitable trusts, or philanthropists, and may have an emphasis on special areas such as Science and Maths, Technology, Business and Enterprise, the Arts, International Baccalaureate, etc. They manage their own admissions using their own admissions criteria that must be transparent. Academies are coeducational, and some have the entire range from 4-18, which is relatively unusual in the UK, but may be of interest to expatriate families seeking one school for all their children.

International Schools The UK, and greater London in particular, has a good number of ‘international schools’. There is no agreed definition of what exactly makes a school ‘international’; and some of the following comments may characterise these schools: • School that seek to attract and recruit international families to create an internationally-diverse student community, regardless of the curriculum they offer • Schools that offer more internationallystyled curriculum such as the International Baccalaureate programmes, the International Primary Curriculum and International Middle Years Curriculum. Some schools offering the International General Certificate of Secondary Education (for students at age 16), which was originally intended for British schools abroad, but which some believe are more rigorous than the regular GCSEs, while others suggest they are better preparation for A-Levels (or the International Baccalaureate Diploma), which lead to university entry • Schools that feature instruction in many mother tongue languages as part of the academic programme • Schools that pro-actively aim to help prepare students for moving on to another country (and not just the UK) for continued schooling or for university entry. In short, any school can describe itself as ‘international’ and it is up to the discerning parent to decipher what that means in each case!

Foreign National Schools and Bilingual Schools In greater London there are schools that follow the national curriculum of other countries, most likely taught in that language, although some are aiming to be bilingual. Most of these schools, though not all, have some official affiliation with and recognition from the country of origin. These include French, German, Japanese, Spanish, Italian, Swedish, Norwegian, Danish, Russian, USA, and possibly others. These schools will either ensure that at the very least the students masters and maintains fluency in the language of the country, others will ensure official alignment to the home country educational programme to facilitate the transfer between the UK-based school and the home country school system. Also emerging are schools that describe themselves as ‘bilingual’ schools. Although these schools may not deliver the curriculum of the country/ies associated with the language, they do aim to develop complete fluency in English and the language in question. There are now bilingual schools offering English and French, Danish and Italian (mentioned earlier), Spanish and, soon to open, Mandarin, found in the UK. There are no standards as to what qualifies a school as ‘bilingual’ but most language experts would suggest that in an English-speaking country such as the UK, at least 50% of the school day should be in the other language for balanced bilingualism to be developed in a child. Curriculum The National Curriculum for England is divided into the following compulsory stages, each with subject content, skills and learning objectives taught, and assessment criteria set out by the national government. There are assessment tests at the end of each key stage to measure individual student progress, and with results from schools reported in ‘league tables’ that are published in the press. Primary School Key Stage 1 – ages 5-7 (Years 1 and 2) Key Stage 2 – ages 7-11 (Years 3,4,5 and 6) The Eleven Plus exams are administered by some schools at the end of primary school, and are 14

used for admission purposes to some independent schools, but also to Grammar Schools. Grammar Schools are state schools that still exist in some local education authorities and are particularly popular in counties such as Kent and Buckinghamshire. Consequently, these schools are often over-subscribed. Secondary School Key Stage 3 – ages 11-14 (Years 7, 8 and 9) Key Stage 4 – ages 14 – 16 (Years 10 and 11) also known as 5th form when the two-year GSCE examinations take place. The General Certificate of Secondary Education (GCSE) is taken in a range of subjects and each subject ends with its own national examination on a prescribed day. The average number of GCSEs taken is 10, according to press reports, although in some ‘hot house’ schools, students may sit as many as 15. The GCSE is regarded as an official school-leaving qualification that can lead to vocational training or basic employment.

selective. These schools are not required to adhere to the National Curriculum for England (schools in Scotland Wales and Northern Ireland offer their own curriculum), and may offer programmes that are aimed at preparing children for the next stage of schooling which is typically accessed through entrance examinations set by the individual schools or groups of schools. The challenge for expatiate families is that their children may not have been prepared to sit these examinations which can make the process stressful. Just to complicate matters, the term ‘public school’ is used to describe a group of some of the more prestigious, long established independent schools in Britain (examples include Eton, Winchester, Harrow, Westminster, Winchester, and others). Expats are urged not to confuse ‘public schools’ (private) with ‘state schools’ (state-funded). Many of these schools tend to be single-sex schools. They will include the following:

Non-Compulsory Schooling Pre-5 EYFS (Early Years Foundation Stage) ages infancy – 5 years (Starting with childcare, nurseries, pre-schools, etc to Reception). Post 16 AS and A-Levels – (Years 12-13) also known as 6th form when one/two year AS and A-Level examinations take place. These qualifications lead to university admission and improved employment. Four (more in some schools) subjects are taken in the first year, then three continued into the second. As expat professionals tend to be well educated themselves and highly aspirational, with expectations that their children will be prepared for university, it is almost unheard of for the children of expats to finish their schooling at 16 at the end of GCSEs. NVQ (National Vocation Qualifications*), B-TEC (work or industry-related qualifications).

Nursery Schools Ages 2-4, normally co-educational. Pre-Preparatory Schools Ages 2 (or 3) to 7 Because these schools are often part of established preparatory Schools (see below), admission to these schools can be highly competitive.

British Independent Schools The British private school sector is popular and, like many state schools, often over-subscribed making entry highly competitive. These are fee-paying schools and admission is normally

Preparatory Schools Ages 7 (sometimes 8) to 11 (girls) or 13 (boys) 15

As the name indicates, these schools prepare students for the next stage of education in independent senior ‘public’ schools, many of which will be boarding schools. Most preparatory schools culminate in exam preparation for the ‘Common Entrance’ Exams which secondary independent or ‘public’ schools require for admission. These schools are more often than not single-sex schools.

for entry into the final two years (sixth form) the student’s GCSE results are likely to be what determines admission. International Curricula The International Baccalaureate Curricula Dating back to the 1960s, the International Baccalaureate programme was originally a twoyear diploma programme offered in the final two years of secondary school to serve the needs of families moving internationally. The IB is managed by a non-profit foundation based in Switzerland that has long had consultative status with UNESCO. Designed by a team of educationalist representing universities and ministries of education from different countries, it offers academic rigour and depth, but also breadth in that students choose a minimum of courses from six areas including two languages (first language and a second language), maths, science, humanities, and a sixth option. Three are taken at a higher level (hence, the ‘depth’) and three at standard level. In addition, all

Senior Schools Age 11 (girls) or 13 (boys) to 19 These schools are often prestigious schools, many with historic legacies that make them highly sought after and competitive. Many of these schools are single-sex, though there are a few coeducational schools of very high standing. Though many students join the school at the entry age of 11 or 13 where they are prepared for the GCSE Exams at age 16; some schools have another intake at age 16 in anticipation of the final two years of the programme (sixth form) when students begin the A-Level or IB Diploma curricula. Admission to these schools is by examination;

students must take the Theory of Knowledge (a popular course exploring the basis of knowledge), complete 150 hours of creative, action and service, and write a 4000-word research essay. The IB leads to university entry worldwide. It is roughly equivalent to English A-Levels, though it is acknowledged to be more work. The IB Diploma has grown in stature in the UK and IB graduates are increasingly sought after by UK universities. As much of the assessment of the IB Diploma is externally-marked by examiners worldwide, it has remained free of grade inflation that some suggest has affected A-Level examinations. It also offers flexibility to enable schools to draw on a local national perspective, alongside an international perspective, so that students may learn about the countries they live in while at the same time considering their home nationality or culture of heritage. Following the popularity of the IB Diploma, in the 1990s the IB developed the IB Primary Years Programme for children ages 3-11 (or 12), and shortly thereafter, the IB Middle Years Programme for students aged 11-16, which also

leads to the IBMYP Certificate. The IBPYP and IBMHP reflect many of the same attributes and characteristics as the original Diploma. They are inquiry-based, aimed at students with a variety of previous learning experiences, and are cross-curricular so that students can see the connections of knowledge and subjects (simple examples of this are how history may influence art; how technology may influence developments in science). Students are assessed by a variety of methods (not just traditional examination) and although the IB programmes are moderated by the IB organisation, all of the assessment is internal â&#x20AC;&#x201C; no external examinations. The programmes highlight the importance of language learning, including mother tongue, and the opportunity for students to consider how the skills and knowledge they are gaining applies to their home countries and cultures. In more recent years, the IB has introduced the new IB Careers Programme, a more experiential, handson practical programme offered as an alternative to the IB Diploma. All of the IB Diploma programmes are

underpinned by the IB Learner Profiles; characteristics and attributes that are regarded as essential to the ‘holistic’ education and to developing 21st century skills that lead to global citizenship. The IB models are the same all over the world, offering a degree of educational continuity to families who move globally.

What kinds of learning will our children need and how should they learn it? The IPC is available worldwide and in an increasing number of UK state schools. IMYC for students ages 11-14 is aligned to Keystage 3 and builds in the IPC. If the success of the IPC is anything to go by, it is likely that the IMYC will be found in more and more British state and independent schools.

The International Primary Curriculum (IPC) and the International Middle Years Curriculum (IMYC) These two programmes, designed by British-based Fieldwork Education, are growing in popularity as an alternative to the International Baccalaureate. The IPC for children ages 3-10 uses a thematic approach with specific learning goals for every area of the curriculum, with an emphasis on developing international-mindedness. The curriculum has been designed with three guiding questions in mind: What kind of world will our children live and work in?; What kinds of children are likely to succeed in the world?; and,

Questions to Consider when choosing a school for an expat child • When choosing between local English (state or independent) schools, consider how your child may adapt to a different system; how well he or she will fit. Think about how long you will be living in the UK, where your next assignment may be, and how compatible the English school system will be when your child has to face that next transition • Particularly for teens, think about likely goals for university and how well the schools you are considering will prepare your child for higher education, and how much the school will

help you navigate the university admissions process to the university/ies of your choice • If English is not your home language, how will the school manage this? Is there a programme available to support this, and if so at what cost? Or, will you need to arrange private tutoring? • If English is not your home language, consider how you will ensure that your child continues to develop literacy and academic proficiency in his or her mother tongue, particularly if he or she is likely to return to your home country for study or work. If the schools you are considering will not support it, think about how you will manage this independently through a Saturday school or private tutors • Speak to colleagues to get a sense as to just how many school applications you should submit. These incur costs, but if the schools are known for waiting lists, you may need to apply to several. If you have more than one child, ask about the chances for all the children being accepted, or sibling admissions policies • Avoid making any commitments about housing until you know your school options. If you

have a look-see trip to plan your relocation, be sure to include the schools early on. No point looking at houses in areas that are impractical for the schools • Carefully consider the implications of applying to separate schools for your children, for example, single sex schools for sons and daughters, or primary and secondary schools. Consider school hours (and pick up or bus schedules) and pay attention to school holiday schedules • Read the admissions requirements carefully and submit all the documents required. Some schools require several components to the application and will not begin to process until all are submitted. Check to ensure your child’s current school has completed references, sent reports, etc., as the new school may not accept copies you provide and may not process the application until it is complete. Don’t ‘hide’ anything about your child’s academic or learning history. If the prospective school suspects something, this may delay the process • If testing is involved and you are applying from abroad, ask whether your child can be

•

tested in the familiar environment of the place you now live. This may require the assistance of the present school, an embassy or bonafide educational consultant. If an interview with your child is required, think how and when you will be able to do that. Consider about how your child will present at an interview, particularly if travelling a long distance to do this. Many international schools accustomed to expatriate families who are relocating will not require interviews Have a back-up plan. You may not need to apply for more than one school at first, but if that does not work for whatever reason, be prepared. This is particularly important if those schools require documents from your present school; too often applications are delayed because key staff are on holiday and reports and references are not sent Be aware of the financial requirements to confirm acceptance of a place. Having secured an offer, you do not want to risk losing it because of the financial procedures or complications arising from international bank transfers. If payment of school fees are part of your compensation package, be sure you know who to contact for payment so that the payments are not delayed putting your child’s place in jeopardy Depending on your family’s circumstances it may be helpful to consider what level of support the school may have in place to help your family with the transition. Some schools now arrange ‘buddy families’ with children of the same ages/ language/cultural group. Even if these people do not become your best friends, it’s good to have at least one point of contact from the school community when you arrive. Be sure to note any orientation events or back to school nights and get those in your diary. Some families think that an Orientation event falling before the official first day of school is not all that essential, a decision they later regret If the whole business seems too complicated, consider engaging a qualified educational consultant to help.

schools are required to undergo inspections, either through OFSTED (the Office for Standards in Education) or alternatively, in the case of many independent schools, through the Independent School Inspectorate (ISI). There are one or two other smaller organisations who also do these inspections. Schools are required to have the most recent inspection report available on their school’s website, but if you cannot find it buried under the downloadable bus maps (some schools don’t make it easy to find!), then you can google OFSTED or ISI and locate school inspection reports on their websites. Most international schools also opt for one of the international accreditations through Council of International Schools (CIS); New England Association of Schools and Colleges (NEASC) – the US-based body that also accredits US public and independent schools, and universities such as Harvard and Yale in New England; and Middle States Association of Schools and Colleges (MSA) – also US-based. These reports are not required to be posted on the school’s website, but accreditation status means the school has had a thorough inspection of the academic programme (teaching and learning), as well as all operational aspects (governance, budget, employment procedures, facilities). Special Educational Needs Parents of students who have suspected or diagnosed special educational needs may have to probe a bit more to find an appropriate schooling solution. Children who are entitled to state education may also be eligible to have a Statement of Special Educational Needs. This is

Inspection and Accreditation A brief word about quality assurance. All UK 20

a time-consuming process entailing assessments by educational psychologists liaising with local educational authorities that are likely to result in a statutory requirement for the LEA to provide specialist support (including therapists) within the school. The first point of contact for this process is the LEA. There are a few independent schools that specialise in serving students with specific special educational needs, but places are sometimes difficult to secure, and early planning is highly recommended. Some international schools offer learning support for students with special educational needs, but this may be limited and only suitable for children with mild learning challenges. Such schools will want to see a copy of the student’s Educational Learning Plan and/or Educational Psychologists’ reports, and may wish to do their own assessment as part of the admissions process. In these circumstances, parents are encouraged to be open and prepared to offer as much information as the schools require.

is another option for families who prefer this model. It is advisable to check the local authority websites for local insights and to ensure you are complying with local requirements. Mary Langford is an independent education consultant with over 30 years’ experience working in the area of international education. She founded Langford International Education Consultancy Ltd so she could share her expertise on a cost-effective project basis with international schools and families in order to improve and enhance the experience of global mobility and transition for children. She manages the International Language and Literature Teachers’ Cooperative - a group of experienced teachers who support IB students worldwide doing School-Supported Self-Taught mother tongue studies in 30 different languages. Mary is also an international education specialist consultant with the Good Schools Guide. She is currently Director of Admissions at Dwight London School. To contact Mary directly, please email: mary@langfordiec.com

Home Schooling Home Schooling is allowed in the UK and this

EMBASSIES & HIGH COMMISSIONS A

Afghanistan Embassy 31 Princes Gate London SW7 1QQ Telephone: 020 7589 8891 Albanian Embassy 33 St George’s Drive London SW1V 4DG Tel: 020 7828 8897 Algerian Consulate 6 Hyde Park Gate London SW7 5EW Telephone: 020 7589 6885 www.algerianconsulate-uk.com American Embassy 24 Grosvenor Square London W1A 1AE Telephone: 020 7499 9000 www.usembassy.org.uk Andorra Embassy 63 Westover Road London SW18 2RF Telephone: 020 8874 4806 Angolan Embassy 22 Dorset Street London W1U 6QY Telephone: 020 7299 9850 www.angola.org.uk Antigua & Barbuda High Commission 2nd Floor 45 Crawford Place London W1H 4LP Telephone: 020 7258 0070 www.antigua-barbuda.com

Australian High Commission Australia House Strand London WC2B 4LA Telephone: 020 7379 4334 www.australia.org.uk

Belize High Commission Third Floor 45 Crawford Place London W1H 4LP Telephone: 020 7723 3603 www.belizehighcommission.com

Austrian Embassy 18 Belgrave Mews West London SW1X 8HU Telephone: 020 7344 3250 www.bmeia.gv.at

Bolivian Embassy 106 Eaton Square London SW1W 9AD Telephone: 020 7235 4248 www.embassyofbolivia.co.uk

Azerbaijan Embassy 4 Kensington Court London W8 5DL Telephone: 020 7938 3412 www.azembassy.org.uk

Bahamian High Commission 10 Chesterfield Street London W1J 5JL Telephone: 020 7408 4488 Baharaini Embassy 30 Belgrave Square London SW1X 8QB Telephone: 020 7201 9170 Bangladeshi High Commission 28 Queen’s Gate London SW7 5JA Telephone: 020 7584 0081 www.bangladeshhighcommission.org.uk Barbadian High Commission 1 Great Russell Street London WC1B 3ND Telephone: 020 7299 7150

Argetinian Embassy 65 Brook Street London W1K 4AH Telephone: 020 7318 1300 www.argentine-embassy-uk.org

Belarus Embassy 6 Kensington Court London W8 5DL Telephone: 020 7937 3288 www.belembassy.org/uk

Armenian Embassy 25a Cheniston Gardens London W8 6TG Telephone: 020 7938 5435 www.accc.org.uk

Belgian Embassy 17 Grosvenor Crescent London SW1X 7EE Telephone: 020 7470 3700 www.diplomatie.be/london 22

Bosnia and Herzegovina Embassy 5-7 Lexham Gardens London W8 5JJ Telephone: 020 7373 0867 www.bhembassy.co.uk Botswana High Commission 6 Stratford Place London WC1 1AY Telephone: 020 7499 0031 Consulate General of Brazil 3 Vere Street London W1G 0DG Telephone: 020 7659 1550 www.brazil.org.uk Brunei Darussalam High Commission 19–20 Belgrave Square London SW1X 8PG Telephone: 020 7581 0521 Bulgarian Embassy 186-188 Queen's Gate London SW7 5HL Telephone: 020 7584 9400 www.bulgarianembassy-london.org Burma Embassy 19A Charles Street, Berkeley Square London W1J 5DX Telephone: 020 7499 8841

Cambodian Embassy 64 Brondesbury Park Willesden Green London NW6 7AT Telephone: 020 8451 7850 www.cambodianembassy.org.uk

Cameroon Embassy 84 Holland Park London W11 3SB Telephone: 020 7727 0771 www.cameroonhighcommission.co.uk

Czech Embassy 26-30 Kensington Palace Gardens London W8 4QY Telephone: 020 7243 1115 www.mzv.cz/london

Estonian Embassy 16 Hyde Park Gate London SW7 5DG Telephone: 020 7589 3428 www.estonia.gov.uk

Canadian High Commission Canada House Trafalgar Square, London SW1Y 5BJ Telephone: 020 7004 6000 www.canada.org.uk

Ethiopian Embassy 17 Princes Gate London SW7 1PZ Telephone: 020 7589 7212 www.ethioembassy.org.uk

Chilean Embassy 12 Devonshire Street London W1G 7DS Telephone: 020 7580 6392 www.echileuk.co.uk

Danish Embassy 55 Sloane Street London SW1X 9SR Telephone: 020 7235 1255 www.denmark.org.uk Dominican Republic Embassy 139 Inverness Terrace London W2 6JF Telephone: 020 7727 7091 www.dominicanembassy.org.uk

Chinese Embassy 49-51 Portland Place London W1B 4JL Telephone: 020 7299 4049 www.chinese-embassy.org.uk

Dominica High Commission 1 Collingham Gardens South Kensington London SW5 0HW Telephone: 020 7370 5194

Colombian Embassy Flat 3 3 Hans Crescent London SW1X 0LN Telephone: 020 7589 9177 www.colombianembassy.co.uk

Congolese Embassy 281 Gray’s Inn Road London WC1X 8QF Telephone: 020 7278 9825 Costa Rican Embassy 14 Lancaster Gate London W2 3LH Telephone: (020) 7706 8844 Croatian Embassy 21 Conway Street London W1T 6BN Telephone: 020 7387 2022 Cuban Embassy 167 High Holborn London WC1V 6PA Telephone: 020 7240 2488 Cyprus High Commission 13 St James's Square London SW1Y 4LB Telephone: 020 7321 4100

Ecuador Embassy 3 Hans Crescent London SW1X 0LS Telephone: 020 7584 1367 Egyptian Embassy 26 South Street London W1K 1DW Telephone: 020 7499 3304

Fijian High Commission 34 Hyde Park Gate, London SW7 5DN. Telephone: 020 7584 3661 www.fijihighcommission.org.uk Finnish Embassy 38 Chesham Place London SW1X 8HW Telephone: 020 7838 6200 www.finemb.org.uk French Embassy 58 Knightsbridge London SW1X 7JT Telephone: 020 7073 1000 www.ambafrance-uk.org

Gabonese Embassy 27 Elvaston Place London SW7 5NL Telephone: 020 7823 9986

Egyptian Consulate 2 Lowndes Street London SW1X 9ET www.egyptianconsulate.co.uk

Gambian High Commission 92 Ledbury Road, Notting Hill London W11 2AH Telephone: 020 7229 8066

El Salvador Embassy 8 Dorset Square London NW1 6PU Telephone: 020 7224 9800 www.embassy.el-salvador.org.uk

Georgian Embassy 4 Russell Gardens London W14 8EZ Telephone: 020 7603 7799 www.geoemb.org.uk

Equatorial Guinea Embassy 13 Park Place St. James’s London SW1A 1LP Telephone: 020 7499 6867

German Embassy 23 Belgrave Square London SW1X 8PN Telephone: 020 7824 1300 www.london.diplo.de

Eritrea Embassy 96 White Lion Street London N1 9PF Telephone: 020 7713 0096 www.eritrean-embassy.org.uk

Ghana High Commission 13 Belgrave Square London SW1X 8PN Telephone: 020 7201 5900 www.ghanahighcommissionuk.com

Greek Embassy 1A Holland Park London W11 3TP Telephone: 020 7229 3850 www.greekembassy.org.uk

Iranian Embassy in London 16 Prince’s Gate London SW7 1PT Telephone: 020 7225 3000 www.iran-embassy.org.uk

Kenyan High Commission 45 Portland Place London W1N 4AS Telephone: 020 7636 2371 www.kenyahighcommission.net/

Grenada High Commission The Chapel Archel Road West Kensington London W14 9QH Telephone: 020 7385 4415 grenada@high-commission.demon.co.uk

Ireland Embassy 17 Grosvenor Place London SW1X 7HR Telephone: 020 7235 2171 www.embassyofireland.co.uk

Korean Embassy 60 Buckingham Gate London SW1E 6AJ Telephone: 020 7227 5500 www.koreanembassy.org.uk

Guatemalan Embassy 13 Fawcett Street London SW10 9HN Telephone: 020 7351 3042 Guyana High Commission 3 Palace Court Bayswater Road London W2 4LP Telephone: 020 7229 7684 www.guyanahc.com/ghclondon

Hondurun Embassy 115 Gloucester Place London W1U 6JT Telephone: 020 7486 4880 Hungarian Embassy 35 Eaton Place London SW1X 8BY Telephone: 020 7235 5218 www.mfa.gov.hu

Icelandic Embassy 2A Hans Street London SW1X 0JE Telephone: 020 7259 3999 www.iceland.org/uk Indian High Commission India House Aldwych London WC2B 4NA Telephone: 020 7836 8484 www.hcilondon.org Indonesian Embassy 38 Grosvenor Square London W1K 2HW Telephone: 020 7499 7661 www.indonesianembassy.org.uk

Israeli Embassy 2 Palace Green London W8 4QB Telephone: 020 7957 9500 http://london.mfa.gov.il Italian Embassy 14 Three Kings Yard London W1K 4EH Telephone: 020 7312 2200 www.amblondra.esteri.it Ivory Coast (Côte d’Ivoire) Embassy 2 Upper Belgrave Street London SW1X 8BJ Telephone: 020 7201 9601

Jamaican High Commission 1-2 Prince Consort Road London SW7 2BZ Telephone: 020 7823 9911 www.jhcuk.org Japanese Embassy 101-104 Piccadilly London W1J 7JT Telephone: 020 7465 6500 www.uk.emb-japan.go.jp Jordan Embassy 6 Upper Phillimore Gardens London W8 7HA Telephone: 020 7937 3685 www.jordanembassyuk.org

Kazakhstan Embassy 33 Thurloe Square London SW7 2DS Telephone: 020 7581 4646 www.kazembassy.org.uk 24

Kuwaiti Embassy 2 Albert Gate London SW1X 7JU Telephone: 020 7590 3400 Kyrgyzstani Embassy Ascot House 119 Crawford Street London W1U 6BJ Telephone: 020 7935 1462 www.kyrgyz-embassy.org.uk

Latvian Embassy 45 Nottingham Place London W1U 5LY Telephone: 020 7312 0041 www.london.am.gov.lv/en Lebanese Embassy 21 Kensington Palace Gardens London W8 4QN Telephone: 020 7229 7265 Lesotho High Commission 7 Chesham Place Belgravia London SW1 8HN Telephone: 020 7235 5686 www.lesotholondon.org.uk Liberian Embassy 23 Fitzroy Square London W1T 6EW Telephone: 020 7388 5489 www.embassyofliberia.org.uk Lithuanian Embassy 2 Bessborough Gardens London SW1V 2JE Telephone: 020 7592 2840 www.lithuanianembassy.co.uk Luxembourg Embassy 27 Wilton Crescent London SW1X 8SD Telephone: 020 7235 6961

Macedonian Embassy Suites 2.1 & 2.2 Buckingham Court 75-83 Buckingham Gate London SW1E 6PE Telephone: 020 7976 0535 www.macedonianembassy.org.uk Madagascar Consulate 8-10 Hallam Street London W1W 6JE Telephone: 0203 008 4550 www.embassy-madagascar-uk.com Malawi High Commission 70 Winnington Road London N2 0TX Telephone: 020 8455 5624 www.malawihighcom.org.uk Malaysian High Commission 45 Belgrave Square London SW1X 8QT Telephone: 020 7235 8033 Maldives High Commission 22 Nottingham Place London W1U 5NJ Telephone: 020 7224 2135 www.maldiveshighcommission.org Malta High Commission Malta House, 36-38 Piccadilly, London, W1J OLE Telephone: 020 7292 4800 www.mfa.gov.mt Mauritius High Commission 32/33 Elvaston Place London SW7 5NW Telephone: 020 7581 0294 Mexican Embassy 16 St George Street Hanover Square London W1S 1FD Telephone: 020 7499 8586 Moldovan Embassy 5 Dolphin Square Edensor Road, Chiswick London W4 2ST Telephone: 020 8995 6818 www.moldovanembassy.org.uk Mongolian Embassy 7-8 Kensington Court London W8 5DL Telephone: 020 7937 0150 www.embassyofmongolia.co.uk

Moroccan Embassy 49 Queen’s Gate Gardens London SW7 5NE Telephone: 020 7581 5001 www.moroccanembassylondon.org.uk Mozambique High Commission 21 Fitzroy Square London W1T 6EL Telephone: 020 7383 3800 www.mozambiquehc.org.uk

Namibian High Commission 6 Chandos Street London W1G 9LU Telephone: 020 7636 6244 Nepalese Embassy 12A Kensington Palace Gardens London W8 4QU Telephone: 020 7229 1594 www.nepembassy.org.uk Netherlands Embassy 38 Hyde Park Gate London SW7 5DP Telephone: 020 7590 3200 www.netherlands-embassy.org.uk New Zealand High Commission New Zealand House 80 Haymarket London SW1Y 4TQ Telephone: 020 7930 8422 www.nzembassy.com/uk Nicaraguan Embassy Suite 31 Vicarage House 58-60 Kensington Church Street London W8 4DP Telephone: 020 7938 2373 Nigerian High Commission Nigeria House 9 Northumberland Avenue London WC2N 5BX Telephone: 020 7839 1244 www.nigeriahc.org.uk Norwegian Embassy 25 Belgrave Square London SW1X 8QD Telephone: 020 7591 5500 www.norway.org.uk 25

Oman Sultanate Embassy 167 Queen’s Gate London SW7 5HE Telephone: 020 7225 0001 www.omanembassy.org.uk

Pakistan High Commission 34–36 Lowndes Square London SW1X 9JN Telephone: 020 7664 9204 www.pakmission-uk.gov.pk Panama Consulate Panama House 40 Hertford Street London W1J 7SH Telephone: 020 7409 2255 Papua New Guinea High Commission 3rd Floor 14 Waterloo Place London SW1Y 4AR Telephone: 020 7930 0922 www.pnghighcomm.org.uk Paraguayan Embassy 344 High Street Kensington 3rd Floor London W14 8NS Telephone: 020 7610 4180 www.paraguayembassy.co.uk Peruvian Embassy 52 Sloane Street London SW1X 9SP Telephone: 020 7235 1917 www.peruembassy-uk.com Philippine Embassy 8 Suffolk Street London SW1Y 4HG Telephone: 020 7451 1800 www.philembassy-uk.org Polish Embassy 47 Portland Place London W1B 1JH Telephone: 020 87580 4324 www.london.polemb.net Portuguese Embassy 11 Belgrave Square London SW1X 8PP Telephone: 020 7235 5331

Qatari Embassy 1 South Audley Street London W1K 1NB Telephone: 020 7493 2200 www.qatarembassy.info

Romanian Embassy Arundel House 4 Park Green London W8 4QD Telephone: 020 7937 9666 Russian Embassy 6/7 Kensington Palace Gardens London W8 4QP Telephone: 020 7229 3628 www.rusemblon.org Rwanda Embassy 120-122 Seymour Place London W1H 1NR Telephone: 020 7224 9832 www.ambarwanda.org.uk

Saint Christopher and Nevis High Commision 10 Kensington Court London W8 5DL Telephone: 020 7937 9718 Saint Lucia High Commission 1 Collingham Gardens South Kensington London SW5 0HW Telephone: 020 7370 7123

Senegalese Embassy 39 Marloes Road London W8 6LA Telephone: 020 7938 4048 www.senegalembassy.co.uk

Swaziland High Commission 20 Buckingham Gate London SW1E 6LB Telephone: 020 7630 6611 www.swaziland.org.uk

Serbian Embassy 28 Belgrave Square London SW1X 8QB Telephone: 020 7235 9049 www.serbianembassy.org.uk

Swedish Embassy 11 Montagu Place London W1H 2AL Telephone: 020 7917 6400

Sierra Leone High Commission 41 Eagle Street, Holborn London WC1R 4TL Telephone: 020 7404 0140 www.slhc-uk.org.uk Singapore High Commission 9 Wilton Crescent London SW1X 8SP Telephone: 020 7235 8315 www.mfa.gov.sg/london Slovak Embassy 25 Kensington Palace Gardens London W8 4QY Telephone: 020 7313 6470 www.slovakembassy.co.uk Slovenian Embassy 10 Little College Street London SW1P 3SH Telephone: 020 7222 5400

South African High Commission South Africa House Trafalgar Square London WC2N 5DP Telephone: 020 7451 7299 Saint Vincent and the Grenadines www.southafricahouse.com High Commission 10 Kensington Court Spanish Embassy London W8 5DL 39 Chesham Place Telephone: 020 7565 2874 London SW1X 8SB Telephone: 020 7235 5555 San Marino Embassy C/o Consulate of the Republic of Sri Lankan High Commission San Marino, Flat 51, 13 Hyde Park Gardens 162 Sloane Street London W2 2LU London SW1X 9B Telephone: 020 7262 1841 Telephone: 020 7823 4768 www.slhclondon.org Saudi Arabian Embassy Sudan Embassy 30 Charles Street 3 Cleveland Row, St James’s Mayfair London SW1A 1DD London W1J 5DZ Telephone: 020 7839 8080 Telephone: 020 7917 3000 www.sudan-embassy.co.uk www.saudiembassy.org.uk 26

Swiss Embassy 16-18 Montagu Place London W1H 2BQ Telephone: 020 7616 6000 www.eda.admin.ch/london

Tanzanian High Commission 3 Stratford Place London W1C 1AS Telephone: 020 7569 1470 www.tanzania-online.gov.uk Thai Embassy 29-30 Queen’s Gate London SW7 5JB Telephone: 020 7589 2944 www.thaiembassyuk.org.uk Tongan High Commission 36 Molyneux Street London W1H 5BQ Telephone: 020 7724 5828 Trinidad and Tobago High Commission 42 Belgrave Square London SW1X 8NT Telephone: 020 7245 9351 www.tthighcomm.org.uk Tunisian Embassy 29 Prince’s Gate London SW7 1QG Telephone: 020 7584 8117 Turkish Embassy 43 Belgrave Square London SW1X 8PA Telephone: 020 7393 0202 www.londra.be.mfa.gov.tr Turkmenistan Embassy St George’s House, 14/17 Wells Street London W1T 3PD Telephone: 020 7255 1071

Ugandan High Commission Uganda House 58/59 Trafalgar Square London WC2N 5DX Telephone: 020 7839 5783 www.ugandahighcommission.co.uk

Uzbekistan Embassy 41 Holland Park London W11 3RP Telephone: 020 7229 7679 www.uzbekembassy.org

Ukrainian Embassy 60 Holland Park London W11 3SJ Telephone: 020 7727 6312 www.mfa.gov.ua/uk

Venezuelan Embassy 1 Cromwell Road London SW7 2HW Telephone: 020 7584 4206 www.venezlon.co.uk

United Arab Emirates Embassy 30 Prince’s Gate London SW7 1PT Tel: 020 7581 1281 www.uaeembassyuk.net

Vietnamese Embassy 12 Victoria Road London W8 5RD Telephone: 020 7937 1912 www.vietnamembassy.org.uk

Uruguay Embassy 1st Floor 125 Kensington High Street London W8 5SF Telephone: 020 7937 4170

Yemen Embassy 57 Cromwell Road London SW7 2ED

Telephone: 020 7584 6607 www.yemenembassy.org.uk

Zambia High Commission 2 Palace Gate Kensington London W8 5NG Telephone: 020 7589 6655 www.zhcl.org.uk Zimbabwe Embassy Zimbabwe House 429 Strand London WC2R 0JR Telephone: 020 7836 7755

This list of Embassies, to our knowledge, is correct at time of going to press. We cannot accept any responsibility for incorrect contact data printed but we apologise for any inconvenience in the event of this occurring.

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Healthcare in the UK Healthcare in the United Kingdom is provided free at the point of delivery to all UK residents by the National Health Service (NHS) but also to some expats whose countries have reciprocal arrangements with the UK such as Australia, New Zealand and members of the EU. However, even those who are not able to benefit from these arrangements are entitled to free emergency treatment at all NHS hospitals within the Accident and Emergency Department, although they may then be liable for any charges for in-patient treatment. Expats coming to work in the UK may be able to access the NHS as following their registration for a National Insurance Number, which involves an interview and completion of the necessary paperwork, they may be assigned an NHS number. Once this has been received it is then possible to apply at a local General Practitioner (GP) Surgery to be attached to a Doctor who will look after their primary care needs including prescribing medicine. This is usually ok for the “worker” but may leave their spouse and family without provision. The expat worker within a larger organisation, especially in London, and particularly the larger law firms, accountants and banks, is also likely to be looked after by their employer with access to primary care either on site or at a local private GP practice. This is done to assist the employee with rapid access to a doctor as it can sometimes be difficult to get a timely appointment within the NHS. A patient requiring a specialist referral from their GP either to a Consultant or for investigations within the NHS, will have no control over who they will see, or the timing of their appointments, as these will be allocated by the hospital. This leads us on to the provision of private healthcare to assist those patients who are unable to access the NHS other than for emergency treatment. There are some GP’s who run their practices outside of the NHS and charge on either a subscription or per consultation basis. These can be researched either through expat networks or the fount of all knowledge “google” for recommendations. Most

expat families will have private medical cover as part of their package to compensate for not being able to access the NHS but it is unlikely that GP visits are covered. It is possible for a patient to refer themselves to a Consultant or Specialist without being referred by a GP, although a GP referral is normally a prerequisite to use medical insurance. The British Medical Association (BMA) also advises that in most cases it is best practice to ensure it is an appropriate referral. When seeking a GP referral to a specialist the desire is normally to see the “best of the best” for the patient’s condition. These days it is also necessary to consider the financial implications of the referral, as doctors and hospitals may have differing price lists and the cover on the policy may have capped limits or be restricted to certain hospital/clinics. The terms/restriction would normally be explained to the patient by the insurance company when they are contacted to authorise the referral, but it would be prudent of the patient to contact the Consultant who they have been recommended to and ascertain: • Consultation fees • Charges for routine investigations • Level of surgical fees if surgery likely to be involved and where they operate. This information is also of importance to those patients without medical insurance who will be paying for their own treatment. Consultant searches, biogs and feedback are now widely available through Consultant own websites or other private healthcare portals. The patient might also need to consider if a Consultant is affiliated only to one hospital group or has the ability to refer for investigations across a wider network. Armed with information it should make the conversation with the insurers easier, and also ensure that there are no financial surprises once treatment is underway. For further information on the NHS please visit www.nhs.uk 29

Immigration & Residency Obtaining your visa is really just the beginning... You may be very familiar with reading articles and websites which set out the details of the UK’s Points Based System and how to go about obtaining a visa to work in the UK. However, over our many years of experience in assisting expats to relocate to the UK, we have come to understand that obtaining the visa to facilitate the move into the UK is really only half the story. Indeed, in some ways, the second chapter is almost more important than the first, since it relates to the expat and their family members settling down to life in the UK, ensuring that they meet the conditions of their visa at all times, whilst being able to get on with every day life such getting a doctors appointment if one of the family falls ill. In the next few paragraphs, we set out some of the key information that it is crucial for every expat to know, as well as highlighting some of the more frequently asked questions by new expats to the UK.

but will need work permission if travelling to another European destination to work. Other nationalities, such as Indian nationals, will require a visa (known as a Schengen visa) even to travel into Europe as tourists. I have a Tier 2 visa; can I take up supplementary employment? Yes, you can do other work in addition to your main job (for which your certificate of sponsorship was assigned). You do not need to inform the Home Office of this additional work (known as 'supplementary employment') if: • It is in the same profession and at the same professional level as the work for which your certificate of sponsorship was assigned; and • You do this work for no more than 20 hours per week; and • Outside your normal working hours of your main job. If you want to do any other type of paid additional work (known as 'secondary employment'), the work must be with a licensed sponsor. That sponsor must assign a new certificate of sponsorship to you, and you must make a new application to the Home Office. Your new application must meet all the Tier 2 criteria, so your sponsor may need to carry out a resident labour market test. You cannot apply for secondary employment until you have started work with your first sponsor, and you cannot start work with your second sponsor until the Home Office have approved your application for secondary employment. You can also do voluntary work in any sector, in addition to your job stated on your certificate of sponsorship, although please note that you must not be paid for your voluntary work, except for reasonable expenses.

WORKING Does my Tier 2 visa allow me to travel/work in Europe? No. Unfortunately your visa is specific to the UK and only allows you and any accompanying family members to work/reside here. Travel into Europe will depend on your nationality, the purpose of your trip and your destination. US and Australian nationals can travel freely into Europe as tourists or business visitors for example,

What do I need to do if my sponsor changes my job or working hours? Certain changes related to your employment in the UK must be reported to the Home Office and in some circumstances their permission will be required. For example if: 31

• There is a change to your core duties which means that your job is now in a different Standard Occupational Classification (SOC) code; or • There is a change to your core duties which means that your job is no longer on the shortage occupation list (if your certificate of sponsorship was assigned on the basis that your job was on the shortage occupation list); or • Your salary reduces from the level indicated on your current certificate of sponsorship or work permit (unless this is caused by a temporary company-wide reduction in working hours and salaries, or by maternity or adoption leave). You do not need to apply to the Home Office if your job changes in other ways (for example, because you change to a new job with the same employer in the same SOC code, your pay increases, or you move to a new job under TUPE arrangements following a takeover, merger or de-merger).

then it is only possible to switch in-country in certain circumstances, for example, if you are a Tier 2 ICT – Established staff visa holder switching into Tier 2 (General) with a new sponsor. You can also switch in-country to Tier 2 (General) with a new sponsor if you are a Tier 2 (ICT) visa holder under the rules that were in place prior to 6th April 2010. I have a Tier 2 Dependant visa – can I work in the UK? Yes. Tier 2 Dependants are permitted to take up employment in the UK as well as setting themselves up in business or being self-employed. Additional permission is not required in order to take up work. The only exception to this is that Tier 2 Dependants cannot work in the UK as a doctor or dentist in training. TRAVEL Is it OK to travel in and out on my Tier 2 visa? Yes. Tier 2 and Tier 2 dependant visas are automatically issued with a multiple entry facility, which means that you can travel in and out of the UK as often as you need to during the validity of the visa – however, please be aware that absences from the UK may have an effect on acquiring permanent residence and British nationality. Please also note that ideally you should avoid being out of the UK when your visa expires, since this could potentially then lead to you having to complete a 12 month exclusion period (known as the ‘cooling-off period’) outside of the UK before being permitted to re-enter the UK in the Tier 2 category.

Can I change employer in the UK? If you leave your current sponsor and wish to be sponsored to remain in the UK by a new sponsor, then that new sponsor will be required to issue you with a new certificate of sponsorship. If you are not currently a Tier 2 (General) visa holder

EXTENDING YOUR STAY My Tier 2 visa is expiring; can I renew it in the UK? Yes. Ideally, your visa should be extended in-country in order to avoid being subject to a 12 month ‘cooling off’ period which can apply in certain circumstances if your visa expires whilst outside of the UK. Extension applications can be submitted in-country for you and any accompanying dependants provided that your sponsor wishes to continue to sponsor you, you have not reached 32

the maximum period of time spent in your visa category, and you meet all other criteria. Applications can be submitted at the earliest, 3 months in advance of your visa expiry date, either via post or through the fast-track service offered at one of the Home Office’s Public Enquiry Offices. Applications via post take on average 4 weeks to process, during which time your passport will be held by the Home Office. Applications submitted via fast-track are usually processed within 24-48 hours, but will require you to attend the appointment in person. Provided that your extension application is submitted prior to the expiry of your current visa you will continue to be able to live and work in the UK legally until the Home Office makes a decision on your application.

Can I get a British passport at some point in the future? Under the current immigration rules, only migrants who are in a category that leads to permanent residence are potentially able to apply for British citizenship since it is a requirement that you have held permanent residence for a minimum of 12 months before applying for citizenship. For Tier 2 migrants, this means only Tier 2 (General) migrants can progress to citizenship, or Tier 2 ICT migrants who arrived in the UK in a legacy category prior to the change in the immigration rules back in April 2010. In order to qualify for citizenship there are certain requirements to be met with regards to the period of residence in the UK and the number of days absence from the UK (a total of 450 days over the 5 year qualifying period and a total of 90 days in the final 12 months leading up to the application). The Home Office may exercise discretion in certain circumstances where absences over and above these limits are due to business travel on behalf of a UK employer or for an exceptional compassionate reason. N.B. Children 18 or over will be required to submit applications for citizenship in their own right. It is also advisable to enquire whether your country of nationality will allow you to hold dual citizenship, as in some circumstances this is not the case and the acquisition of British citizenship could be deemed to automatically rescind your current nationality.

Does my visa lead to permanent residence in the UK? This depends on the type of visa that you hold and when you first arrived in the UK in this category. Under the current immigration rules, only the Tier 2 (General) category potentially leads to permanent residence (indefinite leave to remain) in the UK after having completed a total of 5 years in this category. In order to qualify for permanent residence in this category you will also need to show that you are earning at least a minimum of £35,000 (or as dictated by the standard occupational code, whichever is the higher), that you have passed the Life In The UK test and that you have met the requirements relating to English language and absences from the UK. The current Tier 2 Intra-company transfer category does not lead to permanent residence in the UK. The maximum period of time that can be spent in the UK in this category is 5 years in most instances. However, legislation that took effect from 13 December 2012 allows senior ICT’s earning £155,300 or more to be able to spend a maximum period of 9 years in the UK. Legacy ICT routes (those in existence prior to April 2010) did allow for migrants under this category to apply for permanent residence after 5 years in the UK.

FAMILY Can I sponsor other family members to come to the UK? For Tier 2 visa holders a dependant is classified as: • Your husband, wife or civil partner; or • Your unmarried or same-sex partner; or • Your child aged under 18 years old. Other family members, such as siblings, parents etc., cannot qualify as your dependants under this visa category. At most, you may be able to act as a sponsor for them if they wish to visit the UK and they are a visa national, but they will also be required to meet all the other criteria pertaining to the rules relating to visitors. 33

If you have temporary permission to stay in the UK as the partner (spouse/civil partner/ unmarried partner/same-sex partner) of a migrant who also has temporary permission to stay here, you must leave the UK unless you qualify for a visa in another category in your own right. This is because you will no longer be meeting the requirements of your permission to stay.

My child has turned 18 since we arrived as Tier 2 migrants. Can he/ she continue to be a dependant? Yes. Children who travelled to the UK with you as your dependant, or joined you at a later date prior to turning 18 can continue to be treated in line as your dependant beyond the age of 18. This applies provided that they continue to remain part of the family unit and are dependent upon you for financial support. They can also be included in any future application for permanent residence provided that they continue to form part of the family unit and have always been granted leave to remain in line with yours.

RIGHTS & RESPONSIBILITES Can I get treatment on the National Health Service (NHS)? In most instances, yes. Department of Health regulations state that certain treatment is free regardless of your immigration status. This includes emergency treatment in an Accident and Emergency Department, emergency treatment at a walk-in centre (England and Wales only), family planning services, treatment for certain communicable diseases such as tuberculosis and certain compulsory psychiatric treatment. In addition, certain groups are exempt from charges for hospital treatment on the NHS including people working for a UK based employer and students on courses lasting over 6 months. This will include your family members such as your spouse, civil partner and dependent children, but only if they are lawfully living in the UK. In many cases, they must also be living with you throughout your stay to qualify. You may not be able to receive the full range of hospital treatment, because you must be a permanent resident or have lived here for a year to qualify for it. This applies even if you are a British citizen or have lived or worked here in the past.

My dependant child has now married; can they continue to be a dependant on my visa? No. If a child who was previously treated as your dependant has since married and formed a family unit of their own, they will no longer be entitled to be treated as your dependant. If they wish to continue to reside in the UK they will need to seek leave to remain in another category in their own right. Will any children born here be automatically British? No. If both the child’s parents are Tier 2 migrants when the child is born, then the child will not automatically become a British citizen. In these circumstances it will be necessary to obtain a passport for the child and then apply to the Home Office for the child to be granted leave to remain in the UK as your dependant. However, if one or both parents hold permanent residence at the time of the child’s birth in the UK, then the child will automatically acquire British citizenship. In these circumstances, if you wish your child to hold a British passport you can apply to the Identity and Passport Service along with the child’s full birth certificate. However, please note that although the UK allows its citizens to hold dual nationality, not all countries do, and so it will be important to confirm this with the authorities in the relevant jurisdiction if it is your intention for your child to be a dual national.

Can I claim benefits? No. As a general rule, as a Tier 2 migrant you should not claim benefits or public funds. It is likely that your visa endorsement will state ‘no recourse to public funds’. Public funds include: • Income-based jobseeker's allowance • Income support • Child tax credit • Working tax credit • A social fund payment • Child benefit • Housing benefit • Council tax benefit • State pension credit

My relationship has broken down, am I entitled to remain in the UK? 34

• Attendance allowance • Severe disablement allowance • Carer's allowance • Disability living allowance • An allocation of local authority housing • Local authority homelessness assistance • Health in pregnancy grant; and • Income-related employment and support allowance. Please be aware that confusion often arises in respect of child benefit, particularly where a child is born here in the UK, as the hospital will often provide you with information about claiming child benefit. However, please note that you are not entitled to claim it. There are exceptions for some benefits that are based on National Insurance Contributions (such as maternity allowance). If you are in any doubt however, you should contact the department or agency that issues the benefit which will usually be the Department for Work and Pensions or HM Revenue & Customs.

free of charge. In the UK it is actually compulsory for children to have full-time education between the ages of 5 and 16. A child will therefore usually start education in the term after their 4th birthday, and must continue it until June of the year of their 16th birthday. If you have any dependants of compulsory school age, you must therefore ensure they receive full-time education whilst in the UK. Dependants of migrants can also attend university providing they meet the academic entry criteria. Fees must usually be paid, but loans are available to students. Can I get a mortgage? Yes, it is possible but there are certain hurdles to overcome, the first of which is getting a mortgage application approved without a British credit history. Other issues include being able to persuade the mortgage lender to issue you with a 25 year mortgage if you only currently hold a two or three year visa. Often your chances will increase if you wait a year as you can then evidence a year’s salary. Working for a blue chip company and earning a high salary will also improve your chances. It will also be essential to open a UK bank account before you can apply for a mortgage.

Can I vote? No. Electoral registration is linked to citizenship and British, Irish, EU and qualifying Commonwealth citizens are eligible to register to vote. If you are not a citizen of any of the above you are not be eligible to register to vote.

Can I hold shares in my sponsor’s business/company? Yes, but you must usually not own more than 10 per cent of your sponsor's shares if you are a Tier 2 General migrant.

I have been found guilty of a driving offence in the UK, will this affect my visa? Potentially, depending on the nature and severity of the penalty/conviction. When extending leave to remain in the UK or applying for permanent residence or citizenship, you will be required to disclose any criminal convictions, civil judgements and/or cautions against you either in the UK or any other country and the Home Office will take these into account when considering whether to extend your visa or not. This includes road traffic offences, but not fixed penalty notices (such as speeding or parking tickets) unless they were part of a sentence of the court.

I have had to register with the police; is this an on-going requirement? Only certain nationalities are required to register with the police on arrival in the UK and if you are required to do so it will state this clearly on your visa endorsement. Registration must be completed within 7 days of arrival and the police station will make a record of certain details including your personal details, passport details, UK visa details, UK address, UK employer etc. If any of these details change whilst you are in the UK you will be required to up-date the same police station. Failure to do so will cause problems with extending your visa and/or applying for permanent residence.

Can my children enrol in a state school? Yes. Dependants of Tier 2 migrants are eligible to receive schooling at a state school, which is provided 35

Insurance solutions to help protect your new life in the UK WHILST DRIVING Life can take all sorts of wild twists and turns, and before you know it, you might be packing up and moving overseas. The United Kingdom has long been one of the most popular destinations for expats, who are drawn there because of its premier educational institutions, employment opportunities and the lack of a traditional language barrier. However, being an expat new to the UK can bring with it additional concerns and risks. Most things are more expensive, for example, and a gallon a gas can, as an example, run upwards of double what it would cost at home. Expats may also have to adjust to new living conditions, including different driving rules and regulations.

it is safer - and legal - to stop and wait for the light to turn green. Don't leave home without the right insurance While you are acclimatising to the roads and driving conditions in the UK, having a comprehensive international motor insurance policy in place will help ensure that you are protected against the unexpected. If you intend to stay in the UK for an extended period of time, it is best to acquire a local driver's license. With that in mind, however, local insurance providers aren't always equipped to manage the demanding and unique needs of expats. Choosing a less comprehensive motor insurance plan may mean that you could find yourself potentially impacted by thousands of pounds in out-of-pocket repair bills and other expenses. A reputed, international insurer may be better suited to providing you with the tailormade motor insurance solutions you need. For example, be on the lookout for a policy that includes physical damage, third party liability and excess liability, known as Fully Comprehensive cover in the UK. This three-pronged approach to coverage is more in-depth than the basics offered by general insurance agencies, and that means you'll be better protected from financial risk. Why is this the case? Without an added benefit of excess liability, there could be potential gaps in coverage after an accident with liability exposure. If you experience an accident, basic local currency may not be sufficient to cover all damages. In addition, threats from political violence, theft or terrorism could be higher in parts of the world other than your home country, and a general insurance plan may not include sufficient resources to fully protect you. If you intend to drive in the UK, get in touch with experienced international insurance provider to make sure all your bases are covered.

Risks to be aware of Once you've settled into your new home in the UK, you should consider insurance protection for you and your family against the numerous risks related to life abroad. The best way to be safe is to be smart. There is a moderate threat level in the region, and terrorist attacks could take place at any time. This danger increases in Northern Ireland, where a higher risk of terrorrelated incidents exist, compared to other parts of the UK. Even simple things like getting into your car and driving will be different at first. While most people are aware that Britons drive on the opposite side of the road compared to many countries, it is also helpful to learn local laws, customs and tendencies while on the road to avoid any unexpected accidents. According to TripAdvisor, the speed limits and some other driving behaviours are different in the UK. There is a National Speed Limit, which is set at 60 mph, or 98 km/h, on single-carriageway roads. That increases to 70 mph, or 112 km/h, on dual-carriageways and motorways. Naturally, the speed limit decreases in more congested areas and neighbourhoods. For Americans moreover, it is vital to remember that there is no such equivalent of the "right on red" rule. In all cases, 36

Once you've been comprehensively insured, you Insurance solutions to help protect your new life in the UK can truly enjoy the peace of mind you deserve. Better yet, you'll have more time to experience the numerous benefits that come with life in the UK. If the unexpected does occur, having the right insurance solutions in place will make sure that you are financially protected.

5) Would You Like Add-On Coverage With That? – Add-on coverage includes disablement and towing, as well as rental reimbursement. It’s a common assumption that auto insurance policies extend to rental cars, but this isn’t always the case. Check with your provider to determine if this is covered under your policy. 6) Know Your Role – Find out what your deductible is and exactly how it applies. This can vary based on the situation, so get familiar with your policy and what it means for you.

10 Things You Need to Know about International Auto Insurance 1) One Policy Does Not Fit All – Most standard insurance policies written in the United States will not cover your vehicle once you leave the country, so it’s essential that you purchase coverage for your time abroad.

7) Avoid Unnecessary Hurdles – An insurance policy is measured by the ease and effectiveness of its claims process. Filing a claim can produce a headache or a smile, depending on how your claim is processed. When choosing an international insurance provider, investigate the claims process – some require local adjusters, waiting periods and other hurdles that keep you from finishing the race.

2) Consult With the Locals – It’s very important to understand the local requirements in the country where you plan to insure your vehicle. In some cases, you must purchase Primary Liability coverage from a local provider, but can choose to obtain Excess Liability from an international insurer.

8) Not Everything That Happens Abroad Stays Abroad – You might think you have enough insurance, but it’s possible you have too little. If you don’t have enough liability protection and you’re involved in an auto-related incident overseas, a case could be brought against you in your home country. Would you be financially prepared to defend yourself? The right international auto insurance would eliminate this risk.

3) Who’s in Charge Here? – It’s important to find out if your host country has an authority that regulates and enforces insurance policies. In the event that you choose a local insurance provider, who will defend your interests if you encounter a problem or dispute? An international insurance provider can offer you peace of mind should an issue arise and there isn’t a local authority to help.

9) Dollars & Sense – Currency fluctuation is a consideration when purchasing international auto insurance. Some world currencies are unstable, while others are steadily rising or falling. In a volatile world economy, for example, do you prefer the US exchange rate or the US dollar for your policy? We’re thinking the latter, too.

4) Dissecting a Policy – An international auto insurance policy contains several components that you should be familiar with: 1) Comprehensive and Collision: this coverage protects you at all times, whether or not you’re inside the vehicle and whether your vehicle is parked or in use; 2) Primary (Third Party) Liability: this coverage is purchased based on local requirements and may be obtained from an international provider; 3) Excess Liability: this coverage can be obtained from an international provider to increase your policy’s limits.

10) Lost in Translation – Translating an insurance policy into a different language isn’t the same as translating for a friend during conversation. The terminology in insurance policies isn’t always clear when translated, so make sure you and your provider are sure about what your policy states if it’s in a different language. 37

Moving to the UK: Legal Considerations £325,000, the current ‘Nil Rate Band’. If a Property is purchased using a mortgage to acquire it, the mortgage may be a deductible liability for inheritance tax purposes as inheritance tax is payable on the net value of an estate.

Introduction Moving to the UK raises questions about your tax status, but what about the effectiveness of your existing planning arrangements, such as your Will and nuptial agreements? What happens if you fall ill whilst you are living in the UK? This article explores some key points for you to consider. In addition, if you are planning on purchasing UK property, you should take advice on which arrangement will suit your requirements.

Corporate ownership Recent tax changes (‘the ‘annual tax on enveloped dwellings’ (ATED)) may make corporate ownership of a residential property, worth over £2 million, less palatable. The ATED charge is based on the value of the property and from 2016 will extend to properties worth £500,000 and above. However, corporate ownership may be tax efficient for properties which are being rented out and are exempt from the ATED charge. Trust ownership may also be beneficial and all prospective property purchasers should take specific legal advice to ensure that they purchase property in the most tax efficient way for them, taking into account their individual requirements.

Ownership of UK property With a strong UK property market, buying a property in the UK can be a good investment. There are a number of options for owning property and, although it is beyond the scope of this article to consider them all, advice should be sought on these options. Individual ownership Property can be purchased in your personal name; this can be as a sole owner or if you own a property with another person (such as a spouse) there are two ways this can be achieved. As ‘joint tenants’ or ‘tenants in common’. Joint tenants means that each ‘tenant’ owns the whole of the Property, so that when one person dies the ‘whole’ of the Property passes automatically to the surviving owner, despite any Will they may have. Married couples often hold Property in this way. By holding as 'tenants in common', each party will own a specified share in the Property which will pass in accordance with their Will and not automatically to the surviving co-owner. For people who own property in this way, it is essential that they have a valid Will which covers who their share in the Property should be left to. The most suitable method of joint ownership for you may be based on your home country’s tax rules. UK property is subject to UK inheritance tax regardless of your residence or domicile status. Briefly, UK inheritance tax is payable at 40% of the net value of a ‘death estate’ which exceeds

Estate planning: Wills Many people move to the UK and already have a Will in place in their home country. Will it be valid if I die whilst UK resident? Is my Will tax efficient for my needs whilst I live in the UK? Generally, if a Will is validly executed in the country where it is made, it should be recognised and enforceable in the UK. However, from a practical perspective, if your Will is drafted in a language other than English, the UK probate office will require a certified translation and if some of the estate planning language is different to that used in the UK, it can be more difficult to obtain grant of probate to administer your estate and sell or distribute your UK assets. When you purchase UK property it can be preferable to cover this using a UK Will which can be co-ordinated with your existing Will in your home country (and any other Wills elsewhere) to prevent any delay. In any case, having your current documentation checked can prevent problems. For example, many US citizens have a revocable or living trust. The 39

trust should be reviewed to see how it is treated under English trust laws, as a trust which holds UK assets are subject to the ‘relevant property regime’ – a lifetime inheritance tax charge, which is an expensive trap for the unwary.

Pre-nuptial Agreements Pre-nuptial Agreements aim to set out how assets are shared between a couple in the event they get divorced. They are common place in many Countries and binding. This is not the case in England and Wales although their status has increased considerably in recent years and there is a growing recognition of their important role in society. For couples who wish to have a Pre-nuptial Agreement, then the current guidance is that each seek independent legal advice as to what would be a fair and reasonable provision in the event of a divorce. It would be prudent to include a review clause in the Agreement in the event of children being born. In addition you must provide full details of your respective wealth and ensure that any agreement is signed by you both well ahead of the wedding. Providing these guidelines are followed the presence of a Pre-nuptial Agreement in the event of a divorce will be a factor that the Court will give consideration to and potentially considerable weight.

Lasting Powers of Attorney (LPA) What happens if I become seriously ill or lose my ability to make decisions whilst I am UK resident? Making a LPA ensures that you choose who you trust to make decisions on your behalf when you are no longer able to. There are two types of LPAs: • A Property and Financial Affairs LPA, which gives your Attorney/ Attorneys authority to deal with your property and finances, as you specify • A Health and Welfare LPA, which allows your Attorney/ Attorneys to make welfare and health care decisions on your behalf, but only when you lack mental capacity to do so yourself. You can also decide whether you want them to be able to give or refuse consent to life sustaining treatment. An attorney (you can have up to 4) basically ‘steps into your shoes’ and makes decisions on your behalf. Attorneys can be appointed jointly (so that they have to make decisions in agreement) or jointly and independently. LPAs are useful to ensure that if you or your spouse falls ill whilst in the UK, your chosen attorney will be able to make decisions for you and this prevents what is normally a costly, time consuming and stressful court application.

Divorce In the unfortunate situation where you believe that your marriage has “irretrievably broken down”, then you will need to be able to demonstrate that you are both habitually resident here or at least one of you is or you are domiciled here. It is imperative that you seek specialist legal advice about where you can start Divorce Proceedings urgently as these are legal terms which you would need to consider to establish whether you will meet the criteria to commence proceedings here. The English Courts will have a different approach to divorce and family law, for example, the choice of Country (and State) can have a huge impact on the outcome of financial arrangements. Your English solicitor will want to speak to their counterpart in the States to establish the range of financial orders available to you in either Country so that you are fully equipped to make an informed decision. The English Courts have long enjoyed a reputation for being financially generous to wives. It would be wise to also consider the practicalities of commencing

Family law Whilst many expats will view the UK as their home and integrate into the English way of life, the majority will still retain strong connections with their homeland. Nevertheless, in the event of you either marrying, or your current relationship breaking down, there will be additional legal issues over and above the routine ones to deal with. International family law is a highly complex and specialist area. Any husband or wife with international connections should take legal advice from a solicitor here who specialises in international family law. 40

Miranda Green is a Partner in the Family law team at Mundays and is nationally recognised as one of the very few Resolution accredited specialists in International and European Family Law, and the only such recognised lawyer in Surrey. Contact miranda.green@mundays.co.uk Tel: 01932 590670 Julie Man is a Partner at Mundays. She has a broad case load of private client work including wills with Business Property Relief planning and domicile issues, the administration of estates, deeds of variation, lifetime tax planning, preparation of lasting powers of attorney, registration of powers of attorney and Court of Protection applications. Contact julie.man@mundays.co.uk Tel: 01932 590643 The contents of this article are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.

proceedings in another Country especially if there will be Court Hearings that you will need to attend. Children In the event of a break up of a relationship you may wish to return to your homeland with the children. If this is the case then careful thought and preparation must be made. In the event that your Partner does not agree to you moving back then you will need to seek the permission of the Court. The Court will base any decision on what is in the best interests of the children. You will need to show the Court that you have considered where you will live, where the children will go to school and what are your proposals for the children to see their other parent. These are a few crucial considerations to address. If the children are old enough then their views will also be taken into account. It can take a long time to resolve any disputes and this will affect any final financial settlement that is granted.

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WWW.EXPATSGUIDETOTHEUK.COM FOR INFORMATION AND USEFUL LINKS ON: Banking & Wealth Management Expatriate Clubs Embassies & High Commissions Driving & Transport Education: Schools & Universities Healthcare & Hospitals Immigration & Residency Legal Issues Leisure & Lifestyle Moving & Relocation Residential Lettings Serviced Apartments Taxation Please share this useful resource with any friends, family or colleagues who are in the process of moving to the UK. 41

Property As with any home searches, whether for sale or rent, there is a lot to consider in making sure the right property is found, in the right location, with the right agent, and with enquires from prospective tenants on the increase, tenants need to act quickly to avoid disappointment. First and foremost, as estate agents in the UK are not required by law to be a member of an accredited body, choosing a regulated agent should be top of the list. The most recognised body in the UK is ARLA, the Association of Residential Letting Agents. Using an ARLA regulated agent will give both a prospective tenant and landlord peace of mind as they must follow set codes of practice when negotiating tenancies and more importantly, drawing up the tenancy agreements. So, where should one start when looking for a property to rent? A tenant should carefully think about affordability from the outset. Advertised rentals do not generally include utilities and council tax and these need to be added on. Tenants should think about monthly outgoings as well as the additional cost of renting a property such as agent administration fees which any regulated agents will make prospective tenants aware of both in their advertising and in person. It’s also advisable to ask each agent about their referencing process, an element of this will examine a tenant’s ability to cover the rent and can vary between one agent to another. Location, location, location is not a clichéd saying and its importance cannot be underestimated. For many people the location is more highly regarded than the property itself, so prospective tenants are urged to do initial research in to an area and think about accessibility to amenities and their individual lifestyle needs. A good agent will have a good local knowledge, but conducting internet research, visiting the area and talking to locals will help provide a more intimate knowledge of an area as well as help identify the types of properties, prices, schools, transport links and other amenities a particular area has to offer. In the current market, there is no getting away

from the fact that acting quickly is key to securing a property ahead of the competition. However, a tenancy should never be entered in to on a whim. Properties are priced ‘as seen’ so tenants should examine properties thoroughly and any necessary fixes, additions or removals should be put forward as part of any offer. Most landlords will be willing to do minor works if a number of factors are right such as asking price offers, long tenancy periods and quick start dates. Once a tenant has decided to offer on a property, all documentation that follows should be read thoroughly and understood. A reputable agent or relocation agent will draw up an offer letter which stipulates the terms of offer that is to be put forward to the landlord and take preliminary monies which usually amounts to two weeks rent. The terms of offer forms should detail the terms of taking preliminary monies, such as what it is retained against and for, as well as the particulars of the offer. All going well, the offer will progress to a tenancy and the preliminary money given will be off set against the first month’s rent. Once an offer has been accepted an agent will ask a tenant to proceed with references, this will require a tenant to complete a reference form and provide ID. It’s essential that the forms are completed as fully and as quickly as possible as the property remains open to viewings until a tenancy is signed. Everything done up until that point is ‘subject to contract’. As soon as the references are approved the tenancy, including any specially agreed terms, will be drafted for both the landlord and tenants to sign. Other paper work should include; a breakdown of the initial monies which are to be paid in clear funds by the tenancy start date, this usually includes the first month’s rent (less preliminary monies), security deposit (against unpaid rent and damage), and agents administration fee for legal paperwork. The agent will exchange contracts (normally on the day of move in), and provide the tenant with safety certificates and confirmation of where the deposit is registered, and of course the keys. 42

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UK Serviced Apartments ‘A real home from home’ experience More and more people relocating to the UK are choosing to live in a serviced apartment, having discovered the many benefits they offer. This sector has grown very rapidly in the last 5 years. Virtually every major UK city can now offer a wide range of serviced apartments as a serious alternative to hotel accommodation. The Association of Serviced Apartment Providers (ASAP) can confirm this trend. Its membership has more than doubled in this time and its 90 members now collectively represent over 14,000 properties in the UK and Ireland.

‘home-from-home’ experience where you can properly relax and enjoy more privacy. A key benefit is the extra space offered – you can expect up to 30% more space than a comparable standard of hotel room.’ Serviced apartments are a very cost-effective option offering excellent value for money – there are no expensive ‘extras’ to consider such as hotel minibars, restaurants and room service. Guests appreciate the flexibility to prepare their own meals and not be restricted by hotel restaurant opening times. Many operators provide a generous ‘welcome pack’ of groceries to ensure guests have sufficient food for the first 24 hours of their stay. Families relocating particularly appreciate the more spacious living environment which serviced apartments offer. Children, in particular, benefit from having enough room to have more of their personal possessions around them, so important when settling in to a new country. Staying in a 2 or 3 bedroom apartment means children can have their own bedrooms; in smaller apartments extra

Key Benefits of Using Serviced Apartments James Foice, Managing Director of the ASAP, confirms the key reasons for the increased popularity in this sector: ‘A serviced apartment is the ideal solution for expatriates relocating to the UK. It provides a fully furnished self-contained flat including a fully equipped kitchen with separate areas to sleep, work and eat so it offers a more complete

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beds for children can be easily arranged. The fully equipped kitchen is a key feature. It will normally include a cooker/microwave, fridge-freezer and dishwasher, as well as an extensive range of crockery, cutlery, glassware and kitchen utensils. And while most serviced apartments offer a laundry service, families enjoy the convenience of having a washer/ dryer provided within their serviced apartment which also saves them money. Bed linen, towels and toiletries will also be supplied. A weekly housekeeping service will be included, but a more frequent service can easily be arranged. There is a wide product choice – ranging from studios to 4-bedroom apartments and penthouse suites; top of the range developments may even offer roof terraces or access to a swimming pool or gym. In this dynamic young industry the vast majority of developments are modern so you can expect contemporary, stylish interiors complete with mood lighting and the latest in-room technology. Serviced apartments can be booked for one night, one week, or several months with the cost generally decreasing, the longer the stay (for stays of 28+ days the VAT element reduces to only 4%). A further advantage is that even for longer stays, there are no separate utility bills to worry about, since all these costs will be included in the overall price. Apartments are normally in prime city locations, conveniently close to the place of work which delivers a further advantage – clients may be living only a very short walk away from their office, meaning minimal time is spent commuting.

New for 2015 – Launch of the ASAP Quality Accreditation Marque James Foice, ASAP, confirms: ‘The launch of our ASAP Quality Marque in 2015 is a key milestone for our sector. It is awarded only to those operators who meet all the core compliance of legal, health and safety requirements and deliver a minimum standard of quality expected by all customers. The great majority of ASAP’s members have now achieved the quality accreditation, which involves an overnight stay by one of our independent assessors who undertake a full review of the customer journey from the booking process through to the departure experience. Visit www.theasap.org.uk for further information about the ASAP Quality Accreditation Marque and full details of the 90 serviced apartment operator and agent members of the ASAP. Take a look at the short video (accessed from the homepage) which provides a useful insight into the many benefits of staying in a serviced apartment. Key Benefits of Using Serviced Apartments • More Space • More flexibility • More privacy - a ‘home from home’ experience • Convenience of location • Value for money 46

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TAX we earn (over and above any personal allowance to which we are entitled, and of course subject to various exceptions), and on any capital gain that we realise (over and above an annual exempt amount to which we are entitled, and of course subject to various exceptions). However, if you are an expat in the UK, there is a vast array of tax planning potential, provided of course that you can fathom some staggeringly complex rules and regulations. Here we will focus on just a few of the key advantages.

Introduction For anyone moving to a new country, dealing with taxation issues may seem like a hassle. The UK is no different with its complex (and sometimes seemingly archaic) tax regime, but sensible planning and forethought can avoid a multitude of potentially costly problems. The Basic Principles of UK Taxation The scope of UK income tax, capital gains tax, and inheritance tax is based on a person’s residence status and on their domicile status. Residence under UK tax law is determined by reference to a complex set of criteria known as the “statutory residence test”. Broadly, this works to treat a person as resident in the UK based on the extent of their connections to the UK (e.g. having a home in the UK, work or business connections, etc.,) and the amount of time that the person spends in the UK. It would require an entire article to cover the subject of the statutory residence test in detail, but as a general principle if you live here and work here, you are resident here. Domicile is a concept of UK general law. A person’s domicile is generally the territory which that person considers to be their permanent home. For tax purposes, there are three main categories of domicile: domicile of origin; domicile of dependency; and domicile of choice. For most people, the most important are their domicile of origin (broadly the jurisdiction in which their father was domiciled when the individual reached adulthood), and domicile of choice (generally the jurisdiction which a person adopts as their permanent home). Most expats living in the UK will remain domiciled in their ‘home’ country unless or until they sever their ties to that country with the intention of remaining here indefinitely.

1. The “Remittance Basis” Any person who is resident but not domiciled in the UK can elect to be taxed on the “remittance basis” of taxation. This is a peculiar and often bewildering concept by which a person is able to exempt their offshore investment income (and in very limited cases, employment income) and capital gains from UK taxation. The proviso is that they do not remit the income or gains to the UK. Broadly a remittance occurs when a person brings the income or gains into the UK, uses the income or gains to settle a UK debt or liability, or otherwise ‘enjoys’ the income and gains in the UK. Sounds so simple, doesn’t it? There are of course a few problems with this. Firstly, there is the question of what actually constitutes a remittance to the UK. Secondly, once you have worked out what a remittance actually is, how on earth do you quantify what portion of it is attributable to offshore income or gains? Thirdly, and particularly for those who have been in the UK for more than seven years, there is a price to pay! a. The First Problem So, what is a remittance to the UK? Well, as alluded to above, the term covers virtually any circumstance in which you can obtain a benefit from your offshore assets in the UK. The following are some of the more common examples, although this is by no means an exhaustive list: • Transferring money from an offshore account to a UK account

The Advantages of being an Expat For those of us who are resident and domiciled in the UK, tax is charged on all the income that 49

• Using an offshore credit card to fund purchases in the UK, and paying the bill from an offshore account • Gifting money to your spouse offshore who then brings that money into the UK • Using offshore money to purchase an asset offshore and then importing that asset to the UK • Borrowing money using offshore assets as security and bringing the loan principle into the UK • Buying a plane ticket to visit your family back home using money in an offshore account • Buying a property financed by a mortgage, and using offshore funds to service the mortgage.

The following is a simplified version of the ordering rules that would be applied to our account in the event of a remittance: • Employment income not subject to foreign tax • Investment income not subject to foreign tax • Capital gains not subject to foreign tax • Employment income subject to foreign tax • Investment income subject to foreign tax • Capital gains subject to foreign tax • Clean capital. All of this is rather complicated, so here is a simple example to illustrate how this works in practice. Our expat moved to the UK on 6 April 2012. He had an investment account offshore which was worth £100,000 on that date. During the year ended 5 April 2013, the investments in the account generated dividend income of £2,000 subject to foreign tax at 15%, and interest income of £500 with no foreign tax. During the year ended 5 April 2014, the investments in the account generated dividend income of £2,500 subject to foreign tax at 15%, and interest income of £500 with no foreign tax. A capital gain of £15,000 was realised with no foreign tax charged. On 5 April 2014, our expat remits £20,000 to the UK. To determine the nature of the remittance, we apply the ordering rules on a year by year basis: • Income of the current year not subject to a foreign tax: £500 • Capital gains of the current year not subject to a foreign tax: £15,000 • Income of the current year subject to a foreign tax: £2,500 So, of our £20,000 remittance, we have identified £18,000 as current year income and gains. That still leaves £2,000, so we look at the previous year. • Income of the previous year not subject to a foreign tax: £500 • No capital gains • Income of the previous year subject to a foreign tax: £1,500 That leaves £1,000 of dividend income from the year ended 5 April 2013 and all of the clean capital still in the offshore account, and our expat has a UK tax bill to deal with. As this example shows, the remittance basis of taxation may not be a great help if the individual

b. The Second Problem So now that we have an idea of what a remittance is, the next step is to determine what the tax effect of the remittance might be. In some cases, this could be relatively straightforward. For example, you might have decided to rent out your home rather than selling it when you moved to the UK, and you might have the rental income paid directly into your bank account in the UK. Clearly, that income will have been remitted to the UK, and could therefore be taxed by the UK. More typically however, people will accumulate income and/or gains of varying types (e.g. interest, dividends, capital gains, etc.,) in one account such as a brokerage account over a period of time before deciding to bring some of that money into the UK. At this point, it is worth making one very important point – any income or capital gains realised prior to the date on which a person became UK resident cannot be subject to tax in the UK even if remitted. Let's call that “clean capital”. So, back to our brokerage account. There is a very good chance that it will contain a mixture of interest income, dividend income, capital gain, and clean capital. UK tax rules dictate that we follow a strict ordering regime to determine what the remittance is made up of (and by the way, these ordering rules are designed to give the worst result for you, and the best result for HM Treasury), and that we follow the ordering rules on a year by year basis starting with the current year and working backwards. 50

concerned actually wants the use of their offshore money while they are in the UK - unless some simple tax planning is undertaken before the move to the UK to hive off the income or gains that might cause a tax issue if remitted. By way of an example, and using the same fact pattern as above, our expat instructs his brokerage firm to create a new account shortly before he moves to the UK. He then instructs them that any income or gains generated by the original account should be credited directly to the new account. The original account therefore contains only funds which would be considered clean capital, and clean capital can be remitted to the UK without any tax issues. The new account contains only income and gains, and our expat knows not to remit that money to the UK.

2. Overseas Workday Relief It is not uncommon for expats in the UK to have jobs which require some international travel. Under UK tax law, an expat who comes to the UK can exclude a portion of their earnings from UK taxation for the first three tax years in which they are UK resident. The relief relies on the individual being not domiciled in the UK and claiming the remittance basis of taxation. The level of relief is the lesser of: the proportion of the individual’s earnings which are attributable to time spent working overseas; or the amount of the individual’s earnings which are not remitted to the UK. Furthermore, it is possible for the individual’s employer to obtain a ruling from HM Revenue & Customs to the effect that the anticipated amount of relief can be dealt with via payroll. This means that the expat may not have to wait until their tax return is due in order to feel the benefit. Although this relief is relatively short-lived, it can be very valuable for the internationally mobile employee, although care should be taken to ensure that sufficient sums are kept offshore.

c. The Third Problem With care, the remittance basis can result in significant tax savings for the expat in the UK, but as mentioned above, there is a cost. Firstly, every UK resident whose total income is less than £100,000 is entitled to a personal allowance. This is an amount of income that they can earn before tax becomes due (a tax free allowance). The personal allowance is phased out gradually if the individual’s income is between £100,000 and £120,000, and is not applicable to any individual whose income exceeds £120,000. For remittance basis taxpayers however, there is no personal allowance available regardless of the level of their income. Secondly, for any non domiciled individual who has been resident in the UK in at least seven of the previous nine tax years, there is an additional cost to claiming the remittance basis of taxation in the form of a “remittance basis charge”. The remittance basis charge amounts to an additional £30,000 tax charge for any person claiming the remittance basis who has been resident in the UK in seven of the previous nine years. This becomes £50,000 for people resident in the UK in twelve of the previous fifteen years (although this is expected to be increased to £60,000), and there are plans to introduce a £90,000 remittance basis charge for people resident in the UK in seventeen of the previous twenty years.

3. Inheritance Tax Inheritance tax is levied on gifts made during a person’s lifetime as well as on bequests made on death. For any person who is domiciled in the UK, the inheritance tax net covers the value of their worldwide assets to the extent that those assets exceed the ‘nil rate band’. However, for any person not domiciled in the UK, inheritance tax can only be applied to UK situs assets, which leaves considerable scope for estate planning. One thing that is important to point out is that the UK tax law which governs inheritance tax includes a provision to deem a person as being domiciled in the UK if that person has been resident for tax purposes in seventeen of the past twenty tax years. However, a properly constructed offshore trust established prior to an individual becoming deemed domiciled in the UK can shelter the individual’s offshore assets from UK inheritance tax even after the seventeen year test has passed. Traps for the Unwary Tax legislation in the UK has become extremely complex, and contains a plethora of provisions aimed at preventing tax avoidance. Many of 51

these provisions are drawn in fairly broad terms, and can have implications for expats which may be unexpected.

Generally speaking, unless the option arrangement has been approved by the UK tax authorities, the exercise of an option granted by an employer to an employee is subject to income tax as earnings, with the taxable amount being the difference between the market value of the underlying shares and the amount paid to exercise the option. Historically, UK tax law has stated that if you were granted stock options before your move to the UK, and provided that those options were not granted in anticipation of a move to the UK, there would be no charge to UK income tax when you exercise the options. This was nice and easy, not to mention quite beneficial where the expat had come to the UK from a lower taxed jurisdiction. However, things are about to change. As of April 2015, any stock options exercised in the UK will (at least in part) be taxable in the UK. So, in a case where the option was granted before the move to the UK but exercised afterwards, HM Revenue & Customs will want to tax a pro-rata portion of the income by reference to the period between grant and exercise. In other words, suppose you were granted some options by your employer on 30 June 2012, and moved to the UK on 30 June 2013. If you exercise the option on 30 June 2015, two thirds of the income on exercise would be subject to UK income tax.

1. Importing an Offshore Trust Depending on which country an expat in the UK originates from, it is quite possible that a trust structure may have been put in place in that country without tax as its key rationale. Generally, UK tax law determines the residence of a trust based on the residence of its trustees and on the residence and domicile status of the settlor of the trust when it was funded. If all of the trustees are UK resident, the trust is UK resident; if no trustees are UK resident, the trust is not resident in the UK. If at least one trustee is not resident in the UK, the trust will be resident only if the settlor was resident and domiciled in the UK when the trust was funded. For example, it is very common in the US for individuals to create â&#x20AC;&#x2DC;revocable life trustsâ&#x20AC;&#x2122; to hold their assets. These trusts have no tax benefits in the US, but do help to avoid the expense incurred in obtaining probate on the death of the individual. Typically, the individual will be the creator, trustee, and one of the beneficiaries of the trust. This is all fine, but when that individual moves to the UK, UK tax law would likely treat the trust as if it had also moved to the UK (subjecting its assets to income tax and capital gains tax). That may not be the end of the world for many people, given that the trust was never intended to provide a tax benefit in the first place, but there is a nasty sting in the tail. When the expat decides to return to his or her home country, the trust will also cease to be UK resident as well, and under UK tax law if a trust ceases to be UK resident, it is deemed to have sold all of its assets at their market value and must pay tax on the deemed gain. The moral of the story - if you are the sole trustee of an offshore trust, make sure that the trust appoints another non-resident trustee before you move to the UK.

The Challenges of being American There are somewhere in the region of 200,000 Americans living in the UK, all of whom have to deal with the US citizenship based tax regime in addition to the tax complexities of being an expat in the UK. The US is one of very few countries that impose their tax regime on their citizens (and to some extent, green-card holders) regardless of where in the world they live. This means that US citizens living in the UK often have to worry about filing a US tax return in addition to a UK tax return. The unusual nature of US taxation often presents issues to US citizens living in the UK, and what follows is a summary of some of the more common of these.

2. Employee Stock Options Employee stock options are nothing new, and certainly nothing that are specifically an issue for expats. 52

to report some foreign assets or foreign income, the days of ‘burying one’s head in the sand’ are at an end!

1. FATCA and Foreign Financial Asset Reporting It has become a fact of life that if you happen to be American, the US Government would like to know where your money is! Most US expats will be aware that the Department of Treasury has for many years required that US citizens annually report their foreign bank and financial accounts if the aggregate value of those accounts exceeds $10,000 at any point during the year. This Foreign Bank Account Report or “FBAR” filing remains a requirement, albeit now an online rather than paper filing. Those with more significant financial assets outside the US will have noticed that in recent years an additional form “Form 8938” will have been included in their tax returns. There is significant overlap between this form and the FBARs, but Form 8938 broadens the scope of the assets that need reporting, such that it also covers interests in foreign companies, partnerships, trusts, and other financial assets. As if the above reporting obligations were not onerous enough, 2014 saw the beginning of the implementation of the Foreign Accounts Tax Compliance Act (“FATCA”). FATCA is the US Government’s attempt to coerce foreign banks and financial institutions to gather information on their behalf, and the leverage that the IRS use to enforce it is the threat of withholding taxes. Have you tried to open a bank account, only to be asked if you are a US person, or been sent an alarming letter from your bank asking you to complete some bewildering forms to certify your tax status? If so, that is probably FATCA at work. As far as the US expat in the UK is concerned, the main impact of this is that financial institutions are required to identify their US clients, and report the information to the UK government, who will then pass it across the Atlantic to their counterparts in the US. So, what does this mean? Clearly, the IRS intends to use this information to ensure tax compliance by US citizens with money overseas, but how long it will take them to integrate all of this information into their systems is another question. Ultimately, for anyone who may have forgotten

2. “I am an American, but I haven’t filed my tax returns” This is perhaps a surprising comment, but is nevertheless quite common. Fortunately, for many expats who can demonstrate that their failure to file tax returns was “not willful”, the IRS is operating a fairly benign streamlined voluntary disclosure process with a view to encourage delinquent filers back into the system. For the purposes of this programme, “nonwillful” conduct is defined as any conduct that is due to negligence, inadvertence, mistake, or a good faith misunderstanding of the law. That is a very broad definition (the inclusion of the term ‘negligence’ is particularly surprising), so one would expect most delinquent US tax filers to be able to get into the programme. At this point, it is worth pointing out that if you cannot meet the “non-willful” standard, you should probably be seeking legal advice, and may need to consider entering the more burdensome Offshore Voluntary Disclosure Programme. Anyone wanting to take advantage of the streamlined procedures will need to file three years of late tax returns, six years of late FBAR forms, and a statement explaining why their failure to file meets the non-willful standard. In return, although the IRS will not commit to not auditing the tax returns filed, they will not seek to impose the usual penalties that can be applied to late tax returns. 3. Selling a Home This issue has become a little more wellknown following the much publicised case of Boris Johnson. For UK tax purposes, if you buy a property, and that property is used solely as your principal residence, there is no capital gains tax on sale regardless of the level of the gain. For US tax purposes however, the rules are rather less generous. Instead of a complete exemption, the US offers a $250,000 (or $500,000 if filing jointly) deduction from the gain realised, provided that you owned the property and used 53

it as your main home for at least two of the five years preceding the sale. For some people, the $250,000 or $500,000 deduction is more than enough to eliminate any tax problem. However, in some parts of the UK (central London for example), where house prices have risen dramatically, or in cases where the property has been owned for many years, this will only make a small dent in the taxable gain. For many people, there really is not very much that can be done about this. However, if your spouse is not an American and you are thinking of buying a home, you might want to give some careful thought as to how that home should be owned.

cases, these deemed distributions will be fully or partially subject to US income tax • Taxation of any gifts from the covered expatriate to a US person. This all sounds quite daunting, but there is some good news. The good news is that there is a simple set of tests to determine whether a person is a “covered expatriate” which mean that not everyone will be caught. There are also a few exceptions which can be helpful. In general, a US citizen is a covered expatriate if any of the following is true: • Their net worth is more than $2,000,000 • Their average US tax liability for the past five years (after accounting for foreign tax credits) exceeds $157,000. • They have not complied with their tax filing obligations for the past five years. There are exceptions to the covered expatriate test for people under the age of 18½ and for people who were born with dual citizenship, but both exceptions are dependent on certain residency requirements being met. So, this leaves us with opportunities to undertake some planning in advance of renouncing citizenship to ensure that none of the above tests are met, or relying on one of the exceptions to the covered expatriate rules.

4. Renouncing Citizenship There have been a number of press articles recently highlighting the fact that an increasing number of Americans are giving up their citizenship. For some, this may be because they genuinely have no real connection to the US (for example, someone born in the US to British parents, who has lived in the UK for virtually all of their life), for others, this may be a reaction to what they perceive as overly onerous reporting or tax issues. Whatever the reason, there are a few things to consider before taking the big step of renouncing your citizenship. Firstly, and perhaps most importantly, you need to have a second nationality. The US will not allow a person to renounce their citizenship if it means that they will become Stateless. Secondly, in certain circumstances, there may be tax considerations that could impact the decision. Since June 2008, the US tax code has contained provisions which impose an exit tax on US citizens who renounce their citizenship (there are similar rules for long-term greencard holders). The exit tax provisions apply to “covered expatriates” and comprise three key taxes: • A deemed sale of all worldwide assets on the last day that the covered expatriate is a US person. Tax is then calculated on the amount of the gain realised by the deemed sale after allowing for a one-time deduction (which currently amounts to $690,000) • Deemed distributions from certain deferred compensation and trust arrangements (including most pension plans). In many

For more information, please contact: Matthew Edwards Senior Tax Manager Satis Asset Management Ltd Tel: 020 7004 7126 Email: matthew.edwards@satisuk.com

Don’t forget to visit our website www.expatsguidetotheuk.com for useful links and advice for expatriates about to move to, or living in the UK 54

travel: air, rail & london UK AIRPORTS London: Heathrow Airport – 0844 335 1801 www.heathrowairport.com

Southern England: Southampton Airport – 0844 481 7777 www.southamptonairport.com Wales: Cardiff International Airport – 01446 711 111 www.cwlfly.com Swansea Airport – 01792 204 063 www.swanseaairport.com

Gatwick Airport – 0844 335 1802 www.gatwickairport.com Stansted Airport – 0844 335 1803 www.stanstedairport.com

Channel Islands: Alderney Airport www.flyalderney.com Guernsey Airport – Tel: 01481 237 766 www.guernsey-airport.gov.gg Jersey Airport – 01534 446 000 www.jerseyairport.com

London Luton Airport – 01582 405100 www.london-luton.co.uk London City Airport – 020 7646 0000 www.londoncityairport.com Midlands: Birmingham International Airport – 0844 576 6000 www.birmingham-airport.co.uk Coventry Airport – 024 7630 8600 www.coventryairport.co.uk East Midlands Airport – 0871 919 9000 www.eastmidlandsairport.com Norwich International Airport – 01603 411923 www.norwichairport.co.uk

AIRPORT TRAINS Gatwick Express www.gatwickexpress.co.uk Telesales : 0845 850 1530 Heathrow Express www.heathrowexpress.co.uk Customer Services: 0845 600 15 15

North of England: Blackpool International Airport – 0844 482 7171 www.blackpoolinternational.com Durham Tees Valley Airport – 08712 242 426 www.durhamteesvalleyairport.com Humberside Airport - 01652 688 456 www.humbersideairport.com Isle of Man Airport – 01624 821 600 www.iom-airport.com Leeds Bradford International Airport - 0113 250 9696 www.lbia.co.uk Liverpool John Lennon Airport – 0871 521 8484 www.liverpoolairport.com Manchester Airport – 0871 2710 711 www.manchesterairport.co.uk Newcastle International Airport – 0871 882 1121 www.newcastleairport.com Robin Hood Airport Doncaster Sheffield – 0871 220 2210 www.robinhoodairport.com

Stansted Express www.stanstedexpress.com Customer Services: 0845 600 7245

Scotland: Aberdeen Airport – 0844 481 6666 www.aberdeenairport.com Edinburgh Airport – 0844 481 8989 www.edinburghairport.com Glasgow Airport – 0844 481 5555 www.glasgowairport.com

TRANSPORT FOR LONDON www.tfl.gov.uk For information on getting around London, including the London Underground, Buses, Docklands Light Railway (DLR), London Coaches and the Oyster Card, visit the official Transport for London website or call the TFL travel information line on 020 7222 1234.

Luton Airport Trains Call National Rail for times and fares on 0845 748 4950 EUROSTAR TRAINS www.eurostar.com Telesales: 08705 186 186 Direct service from London – St Pancras International and Ashford (Kent) to Paris, Brussels, Lille, Disneyland Resort Paris and Avignon. Check the website for further details as well as information on connecting services to other international train stations. NATIONAL RAIL For general rail enquiries, timetable and fare information call 08457 48 49 50 or visit www.nationalrail.co.uk