The 2019 Expatriate's Guide to Living in the UK by The Expatriate's Guide to Living in the UK

17th Annual Edition

The 2019 Expatriate's Guide to Living in the UK

Topics include: Banking, Clothing Conversion, Clubs, Driving, Education, Embassies, Family Law, Property, Serviced Apartments, Tax, Travel & UK Inheritance Tax For US Expats

www.expatsguidetotheuk.com A product of Supporting International HR Professionals Worldwide

CONTENTS Page 2

Banking

Page 3

Clothing Conversion Chart

Page 4

Clubs for Expatriates

Page 5

Driving

Page 9

Education & Schooling

Page 19

Embassies & High Commissions

Page 24

Family Law

Page 28

Property

Page 33

Serviced Apartments

Page 39

Tax

Page 45

Travel

Page 46

UK Inheritance Tax For US Expats

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

BANKING IN THE UK 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. 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 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.

Moving to a new country can be an upheaval and so it makes sense to try and make the move as hasslefree 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. 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 2

CLOTHING CONVERSION CHART

CLUBS FOR EXPATRIATES New Zealand Women’s Association www.nzwa.co.uk Northwood Area Women’s Club (NAWC) www.northwoodareawomensclub.co.uk

EXPATRIATE & WOMEN'S CLUBS – LONDON AND SURROUNDING AREA American Women of Berkshire & Surrey www.awbs.org.uk American Club of Hertfordshire hertsamerica@outlook.com

St Johns Wood Women’s Club www.sjwcc.org Thames Valley American Womens Club www.tvawc.com

American Women Lawyers in London www.awll.org.uk

EXPATRIATE CLUBS – REST OF THE UNITED KINGDOM American Women’s Club of Central Scotland www.awccs.org American Women's Club of Dubin, Ireland www.awcd.net Association of American Women of Aberdeen www.awaaberdeen.org Dutch Women of Surrey (DWS) www.dutchwomenofsurrey.co.uk International Women’s Club of Edinburgh www.iwce.co.uk North American Connection – Midlands UK www.naconnect.com Petroleum Women’s Club of Scotland www.pwcos.com

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

American Women of Surrey www.awsurrey.org

Association of Turkish Women in Britain www.atwib.org.uk Australian Women’s Club in London www.awclondon.org.uk Canadian Women’s Club www.canadianwomenlondon.org

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

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

POLITICAL – US CITIZENS Democrats Abroad UK www.democratsabroad.org.uk United-Kingdom Federal Voters Assistance Program www.fvap.gov Overseas Vote Foundation (OVF) www.overseasvotefoundation.org Republicans www.republicansoverseas.uk

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

Federation of American Women’s Clubs Overseas (FAWCO) www.fawco.org Focus Information Services www.focus-info.org Hampstead Women’s Club www.hwcinlondon.co.uk

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

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

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

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 5

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.

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. 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® 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 6

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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.gov.uk/browse/driving/driving-licences

EDUCATION & SCHOOLING IN THE UK in more than one school, indicating the desired schools in order of preference 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 is closest to the child’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 vary 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 family’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

SCHOOLING IN THE UK 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 VISA AND RESIDENCY REQUIREMENTS 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 if they are registered with the UK Border Agency to be ‘sponsors’, which means that they are able to support visa applications. Some schools may also need to see copies of the parents’ visa status. Currently any EU passport holders are eligible to live and attend school in the UK, but changes are likely to occur when the Brexit negotiations are concluded. If your employer is bringing you to the UK to work, they will most likely manage the visa application process for your dependent children. If you are coming to the UK as a business investor, you may need to have the support of the school to secure a visa for your child. 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 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 9

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, Greek, Japanese, Spanish, Italian, Swedish, Norwegian, Danish, Russian, USA, and possibly others. These schools will either ensure that at the very least the students master 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, Mandarin, Arabic, Greek and Italian (mentioned earlier), found in the UK, predominantly in the London area. 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. There are also a number of ‘Saturday schools’ which offer supplementary mother tongue language classes in a wide arrange of languages for students of all ages - these are separate and distinct from the bilingual schools mentioned above. Some may offer elements of the official ‘home country’ language curriculum. These are often located within schools, church halls or other civic spaces and are intended to help native speakers maintain and develop mother-tongue proficiency in the language. Check online or with the relevant embassies for more information.

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’; some of the following comments may characterise these schools: • Schools 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 curricula such as the International Baccalaureate programmes, the International Primary Curriculum and International Middle Years Curriculum. Some schools offer 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 (though this may come at extra cost); • 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!

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

FOREIGN NATIONAL SCHOOLS & 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 10

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).

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 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.

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 selective. These schools are not required to adhere to the National 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 expatriate 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, and few are 'through' schools serving 3-18 year olds. They will include the following:

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.

NURSERY SCHOOLS Ages 2-4, normally co-educational

NON-COMPULSORY SCHOOLING Pre-5 EYFS (Early Years Foundation Stage) ages infancy – 4 years (starting with childcare, nurseries, pre-schools, etc., to Reception).

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.

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

PREPARATORY SCHOOLS Ages 7 (sometimes 8) to 11 (girls) or 13 (boys) 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 12

admission. These schools are more often than not single-sex schools. (Note that some prestigious boys’ senior schools are now dropping the Common Entrance for entry at 13+ and instead using ‘pre-assessments’ taken in Year 6).

is acknowledged to be more work. The IB Diploma has grown in stature in the UK and its 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 IBYP 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, are cross-curricular so that students can see the connections of knowledge and subjects (simple examples of this are, how

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; 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 two-year 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 nonprofit foundation based in Switzerland that has long had consultative status with UNESCO. Designed by a team of educationalists 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 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 13

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, although external assessment and 'eAssessments' now feature as an option at the end of the IBMYP. 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.

THE INTERNATIONAL PRIMARY CURRICULUM (IPC) AND THE INTERNATIONAL MIDDLE YEARS CURRICULUM (IMYC) These two programmes designed by British-based Fieldwork Education and are growing in popularity as an alternative to the International Baccalaureate. The IPC for children aged 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, 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 aged 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. 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. Also, it is good to consider whether the school is likely to provide school records and transcripts that you will need for the next move • 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 your child's English language development, and if so at what cost? Or, will you need to arrange private tutoring? • Also, 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 of 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 • Consider transportation issues. State schools do not provide school buses as may be the case in some countries. On the other hand, all students in full-time education travel free on public buses (and at a reduced fare on the London Underground.) Some schools provide school transportation through their own buses or through outsourced services

• 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 may have deadlines for this. 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 • If your child has had any external assessments, for example, speech and language or educational diagnostic reports, be ready to provide copies to the school. Don’t ‘hide’ anything about your child’s academic or learning history. If the prospective school suspects something, this may delay the process • If your children’s school reports or other supporting documents are written in a language other than English, you may be required to submit official translations. However, some international schools may have members of staff who can interpret the report for the Admissions Office. Check with the school • If testing is involved as part of the admissions process 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, The British Council, or bonafide educational consultant. If an interview with your child is required, think about 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 is 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. It is also important that you understand the notice period required to withdraw to ensure you do not have to pay the next term’s school fees. (Typically independent schools require one full term’s written notice • 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 thinking 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.

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). Foreign national schools may also have national recognition and approval from their home systems – i.e. the French homologue schools. Parents from those systems should ask about the status of the school.

INSPECTIONS AND ACCREDITATION A brief word about quality assurance. All UK 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

SPECIAL EDUCATIONAL NEEDS Parents of students who have suspected or diagnosed special educational needs, and/or disabilities, may have to probe a bit more to find an appropriate schooling solution. In the first instance, a plan for SEND (Special Educational Needs and Disabilities) support may be agreed by the parents, teachers and the SEN/SEND Coordinator of the school. This plan should be reviewed at agreed intervals to assess the impact this support is having. If more intervention is merited, the family can request

that an EHC Plan (Education, Health and Care) by the Local Education Authority assessment be undertaken and an EHC plan agreed. This may lead to the school accessing the support of external specialists and therapists available through the local authority, and/or for educational provision to be made in an independent school. 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.

work closely with the Social Services and the Safeguarding Leads of local authorities in this respect. This means the circumstances relating to child abuse or neglect must be reported to the local authorities, and so parents may want to better understand how ‘abuse’ is defined in Britain. Things such as unexpected or prolonged absence from school, poor hygiene, being left alone for a night without an adult, FGM, excessive ‘intimidation’ or bullying by a family member, excessive references to terrorism, may all lead the school authorities to have concerns which they are obliged to report. This is a culturally-charged issue, but expatriate families need to understand that they are not exempt from these requirements. This article was written by Mary Langford. Mary is an independent education consultant with over 35 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 SelfTaught mother tongue studies in 40 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. Email Mary at mary@langfordiec.com or visit www.langfordiec.com

HOME SCHOOLING Home Schooling is allowed in the UK and this 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. There are also a few global online homeschooling programmes available. Parents considering this should ensure that they are suitably accredited and approved. A NOTE ABOUT SAFEGUARDING British requirements surrounding the safeguarding of children have become much tighter in recent years. Schools have a legal obligation to

Want to help your child develop good SPEECH, LANGUAGE, SOCIAL and COMMUNICATION foundation skills? Worried your child seems to be struggling with some areas of social skills? As a qualified Speech and Language Technical Instructor, I can help with practical advice, parental skills and implementing everyday strategies. I have 16 years of experience of working for the NHS Speech and Language team, working in Surrey with children, families, teachers and health professionals, covering all areas of Early Years Child Development in Speech and Language, Social Communication, Autism, ELKLAN, SCERTS (Social Communication, Emotional Regulation and Transactional Support) and Makaton. If you would like to ring for an initial chat, please call Jacqueline Whitehead on 0797 6184311.

EMBASSIES & HIGH COMMISSIONS A

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

Bosnia and Herzegovina Embassy 5-7 Lexham Gardens London W8 5JJ Telephone: 020 7373 0867 www.bhembassy.co.uk

Albanian Embassy 33 St George’s Drive London SW1V 4DG Tel: 020 7828 8897

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

Botswana High Commission 6 Stratford Place London WC1 1AY Telephone: 020 7499 0031

Afghanistan Embassy 31 Princes Gate London SW7 1QQ Telephone: 020 7589 8891

Algerian Consulate 6 Hyde Park Gate London SW7 5EW Telephone: 020 7589 6885 www.algerianconsulate-uk.com American Embassy 33 Nine Elms Lane London SW11 7US Telephone: 020 7499 9000 www.usembassy.org.uk 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 Argetinian Embassy 65 Brook Street London W1K 4AH Telephone: 020 7318 1300 www.argentine-embassy-uk.org

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

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

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

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

Bolivian Embassy 106 Eaton Square London SW1W 9AD Telephone: 020 7235 4248 www.embassyofbolivia.co.uk 19

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

Canadian High Commission Canada House Trafalgar Square, London SW1Y 5BJ Telephone: 020 7004 6000 www.canada.org.uk Chilean Embassy 12 Devonshire Street London W1G 7DS Telephone: 020 7580 6392 www.echileuk.co.uk Chinese Embassy 49-51 Portland Place London W1B 4JL Telephone: 020 7299 4049 www.chinese-embassy.org.uk

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

Egyptian Consulate 2 Lowndes Street London SW1X 9ET www.egyptianconsulate.co.uk El Salvador Embassy 8 Dorset Square London NW1 6PU Telephone: 020 7224 9800 www.embassy.el-salvador.org.uk Eritrea Embassy 96 White Lion Street London N1 9PF Telephone: 020 7713 0096 www.eritrean-embassy.org.uk

Cuban Embassy 167 High Holborn London WC1V 6PA Telephone: 020 7240 2488

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

Cyprus High Commission 13 St James's Square London SW1Y 4LB Telephone: 020 7321 4100

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

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

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

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

Gambian High Commission 92 Ledbury Road, Notting Hill London W11 2AH Telephone: 020 7229 8066 Georgian Embassy 4 Russell Gardens London W14 8EZ Telephone: 020 7603 7799 www.geoemb.org.uk 20

German Embassy 23 Belgrave Square London SW1X 8PN Telephone: 020 7824 1300 www.london.diplo.de 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 Grenada High Commission The Chapel Archel Road West Kensington London W14 9QH Telephone: 020 7385 4415 grenada@high-commission.demon.co.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 30 Great Peter Street London SW1P 2BU Telephone: 020 7499 7661 www.indonesianembassy.org.uk

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

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

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

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

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

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 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 21

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 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

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

Panama Consulate Panama House 40 Hertford Street London W1J 7SH Telephone: 020 7409 2255

Russian Embassy 6/7 Kensington Palace Gardens London W8 4QP Telephone: 020 7229 3628 www.rusemblon.org

Papua New Guinea High Commission 3rd Floor 14 Waterloo Place London SW1Y 4AR Telephone: 020 7930 0922 www.pnghighcomm.org.uk

Rwanda Embassy 120-122 Seymour Place London W1H 1NR Telephone: 020 7224 9832 www.ambarwanda.org.uk

Paraguayan Embassy 344 High Street Kensington 3rd Floor London W14 8NS Telephone: 020 7610 4180 www.paraguayembassy.co.uk

Saint Lucia High Commission 1 Collingham Gardens South Kensington London SW5 0HW Telephone: 020 7370 7123

Pakistan High Commission 34–36 Lowndes Square London SW1X 9JN Telephone: 020 7664 9204 www.pakmission-uk.gov.pk

Peruvian Embassy 52 Sloane Street London SW1X 9SP Telephone: 020 7235 1917 www.peruembassy-uk.com

Romanian Embassy Arundel House 4 Park Green London W8 4QD Telephone: 020 7937 9666

Saint Vincent and the Grenadines High Commission 10 Kensington Court London W8 5DL Telephone: 020 7565 2874

Philippine Embassy 8 Suffolk Street London SW1Y 4HG Telephone: 020 7451 1800 www.philembassy-uk.org

Saudi Arabian Embassy 30 Charles Street Mayfair London W1J 5DZ Telephone: 020 7917 3000 www.saudiembassy.org.uk

Polish Embassy 47 Portland Place London W1B 1JH Telephone: 020 87580 4324 www.london.polemb.net

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

Portuguese Embassy 11 Belgrave Square London SW1X 8PP Telephone: 020 7235 5331

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

Qatari Embassy 1 South Audley Street London W1K 1NB Telephone: 020 7493 2200 www.qatarembassy.info 22

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 17 Dartmouth Street London SW1H 9BL Telephone: 020 7222 5700

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

Uruguay Embassy 1st Floor 125 Kensington High Street London W8 5SF Telephone: 020 7937 4170 Uzbekistan Embassy 41 Holland Park London W11 3RP Telephone: 020 7229 7679 www.uzbekembassy.org

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

South African High Commission South Africa House, Trafalgar Square London WC2N 5DP Telephone: 020 7451 7299 www.southafricahouse.com

Trinidad & Tobago Embassy 42 Belgrave Square London SW1X 8NT Telephone: 020 7245 9351 www.tthighcomm.org.uk

Spanish Embassy 39 Chesham Place London SW1X 8SB Telephone: 020 7235 5555

Tunisian Embassy 29 Prince’s Gate London SW7 1QG Telephone: 020 7584 8117

Sri Lankan High Commission 13 Hyde Park Gardens London W2 2LU Telephone: 020 7262 1841 www.slhclondon.org

Turkish Embassy 43 Belgrave Square London SW1X 8PA Telephone: 020 7393 0202 www.londra.be.mfa.gov.tr

Sudan Embassy 3 Cleveland Row, St James’s London SW1A 1DD Telephone: 020 7839 8080 www.sudan-embassy.co.uk

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

Z Turkmenistan Embassy St George’s House, 14/17 Wells Street Zambia High Commission 2 Palace Gate London W1T 3PD Kensington Telephone: 020 7255 1071 London W8 5NG Telephone: 020 7589 6655 U www.zhcl.org.uk Ugandan High Commission Uganda House, 58/59 Trafalgar Square Zimbabwe Embassy London WC2N 5DX Zimbabwe House Telephone: 020 7839 5783 www.ugandahighcommission.co.uk 429 Strand London WC2R 0JR Telephone: 020 7836 7755 Ukrainian Embassy 60 Holland Park London W11 3SJ Telephone: 020 7727 6312 www.mfa.gov.ua/uk This list of Embassies, to our

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

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

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

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

Yemen Embassy 57 Cromwell Road London SW7 2ED Telephone: 020 7584 6607 www.yemenembassy.org.uk

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.

FAMILY LAW FROM BEVERLEY HILLS TO NOTTING HILL – A SHORT GUIDE TO MOVING TO THE UK

advice should be sought on this as soon as you are considering relocating to the UK, as the opportunity to identify clean capital may be lost on your arrival.

INTRODUCTION Whether you’re a Hollywood celebrity like Julia Roberts, an intrepid traveller, entrepreneur, expatriate moving for work or simply relocating for love, moving is always an exciting time. And if you are moving to the UK in particular, you will no doubt have a list of interesting and exciting things you may want to do on your arrival - such as check out the vibrant theatre and gastronomic scene, visit Buckingham Palace to catch a glimpse of Meghan, or decide which football team you are going to declare undying allegiance to for the rest of your life. Unfortunately (and realistically), understanding your tax status and ensuring your estate planning arrangements are in order is often not a top priority when blinded by so many exciting new experiences and challenges. This article will give you a few pointers as to why you should give these issues some attention and consider whether your existing planning arrangements, such as if your Will and nuptial agreements are still effective. What happens if you fall ill whilst you are living in the UK? We will explore some key points for you to consider. Furthermore, if you take to the British lifestyle and whether you may wish to consider purchasing a UK property and putting down more permanent roots, you should always take advice on your arrangements to ensure that they meet your requirements.

OWNERSHIP OF UK PROPERTY With a stable democratic political and financial system compared to many countries around the world, buying a property in the UK can be an attractive proposition. Even more so at this time in light of the relatively weak pound. 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 This is the most common form of 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. For instance where a US citizen is married to a UK national it may be more beneficial for the property to be held in the name of the UK spouse. Circumstances of each family arrangement will need to be considered. UK property is subject to UK inheritance tax regardless of your residence or domicile status. Briefly, UK inheritance tax is payable currently at 40% of the net value of a ‘death estate’ which exceeds £325,000, the current ‘Nil Rate Band’.

TAX PLANNING The UK does offer a favourable tax regime for foreign nationals relocating to the UK. This can be particularly advantageous for individuals who have non UK source income and funds held outside of the UK. It is possible to elect to pay tax on foreign income and gains only once it is remitted to the UK as opposed to on an arising basis which UK citizens are charged on. There is also opportunity to identify ‘clean capital’ prior to your arrival in the UK. These funds can be remitted to the UK without charge. The rules are quite complex and it goes without saying that 24

are subject to the ‘relevant property regime’ – a lifetime inheritance tax charge, which is an expensive trap for the unwary. Indeed, it is often best to take advice on these matters prior to arrival in the UK.

If a Property is purchased using a mortgage to acquire it, the mortgage is a deductible liability for inheritance tax purposes as inheritance tax is payable on the net value of an estate. The rules surrounding the use of debt to reduce the liability to UK inheritance Tax have been tightened therefore if a foreign national is considering the use of foreign debt care should be taken to ensure that the debt will be effective for estate planning purposes.

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 formal court application which is the only alternative.

CORPORATE OWNERSHIP Following the introduction of the annual tax on enveloped dwellings (ATED) and higher rate SDLT charges, corporate ownership of a residential property, worth over £500,000, has become less popular. 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. 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 you die whilst UK resident? Is your 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 (and is recommended) to cover this using a UK will which can be co-ordinated with your existing will in your home country (and any other wills in other countries) 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 trust should be reviewed to see how it is treated under English trust laws, as a trust which holds UK assets

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. 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 25

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.

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 your proposals are 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. It is crucial that you either obtain consent from your Partner to return home (or stay longer here, if they have returned first) or obtain a court order. Failure to do so could see you inadvertently committing child abduction which is a criminal and civil offence. The UK is a signatory to the 1980 Hague Convention which enables co-operation between signatory countries to facilitate the swift return of an abducted child. In the event you think there has been an abduction then it is imperative that you take prompt legal advice from a family solicitor.

DIVORCE In the unfortunate situation where you believe that your marriage has “irretrievably broken down”, 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 to the American States. 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. If there is an English divorce then the English court will only apply English law and consider all of your worldwide assets. 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 proceedings in another Country especially if there will be Court Hearings that you will need to attend.

Miranda Green is a Partner and Head of 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. Clients of the team have access to the skills of three mediators, two collaboratively trained solicitors and three further accreditations in pensions, complex finances and cohabitation. Contact miranda.green@mundays.co.uk tel: 01932 590670. Jeremy Duffy and Julie Man at Mundays advise on tax, trust and estate planning for individuals and trustees, with an emphasis on advising non-domiciled clients and work with an international element. Contact jeremy. duffy@mundays.co.uk tel: 01932 590597 or 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.

CHILDREN In the event of a break-up of a relationship you may wish to return to your homeland with the 26

RENTING A PROPERTY IN THE UK they are a professional company and the founder herself is American, so she understands being an Expat. Across the UK you can find the accredited providers through the Industry Body, the Shortterm Accommodation Association.

A GUIDE TO RENTING PROPERTY IN THE UK The property market in the UK is very different from many markets. Estate Agents typically represent the seller or landlord and often the buyer or renter doesn’t have anyone representing their interest in the initial offer stage unless you or your company hires someone to provide that service. It can mean less in fees overall, but it is important to make sure you know at least the basics to help you find the perfect home in the UK at the right price and to settle in successfully to this wonderful country.

WHEN TO FIND YOUR NEW HOME The rental market moves very quickly (particularly in London) and as a general rule the earliest you should start viewing apartments would be 4 weeks prior to your move date. We would recommend finding temporary housing when you arrive for between 1-3 months so you can find the perfect place. It also allows time for all of your things to arrive from overseas. Requirements - to get an idea of the type of property you are looking for you will want to consider the following: • How many bedrooms/bathrooms do you require? • How many people in your family/party? Do you have any pets? • Will you require Furnished or Unfurnished? • What is your budget per week/month? • Which area(s) would you like to live in? • Any special requirements? • When do you require a property from and for how long? • Will the lease be a Company Lease or a Private Lease (in your name)? It may be that you don’t yet have the answers to all of these questions yet, but any you can complete will help you focus your search. Research - You can take a look at what is available on the market by looking at property portals such as OnTheMarket, Zoopla, or Rightmove to get an idea what is available. Estate Agents - In the UK Estate Agents typically represent the Landlord or Seller but most people looking independently register with one or more Estate Agents who will help them find a good home. Search Agent - When it comes to finding a long-term let there are the various property portals mentioned above which list available properties. But searching can be frustrating and time consuming, especially if you don’t know the areas or what to look for. An alternative is to work

FINDING THE RIGHT AREA It can be incredibly difficult to know where to live and to find the right place. We recommend using your visits leading up to your assignment to stay in different areas and to rent real homes so you can learn what is important to you. Consider the following checklist: • How urban or suburban you want to be - do you want to live in a family friendly area or a hip, up and coming neighbourhood? • Access to transport – are you happy driving or will you give up a car and live in walking distance to everything, including public transport? • Shops, restaurants and clubs - do you want to be in a more residential area or have access to all the conveniences and social facilities on your doorstep? • Schools – if you are coming with your family, which areas provide easy access to the right schools for your children • What style of home you would like to live in? Do you want a full English experience, carpeted bathrooms and separate taps and all, or do you prefer a modern new development? Or perhaps something in the middle? Living in real homes will help you decide on your priorities and find the right area for you to live when you relocate. In London, UnderTheDoormat.com can be a great resource to stay in a home during your visits and when you arrive for the initial period while you look for your permanent home. As a fully managed provider of short-term home accommodation 28

with a reputable search agent who have access to an extensive database of properties. The benefit of expert knowledge cannot be overestimated and should reduce stress by refining your search, preventing wasted journeys and unnecessary expenses. Acting as a retained search agent they can act on your behalf and seek to secure your chosen property for the most favourable price. Viewing - Property tours generally take place during office hours (Monday – Friday 9am – 6pm). In London you can typically get Saturday viewings as well. It is the landlord’s agent showing you around so come prepared with your list of questions as they are unlikely to tell you the downsides if you don’t ask.

contract term, move in date or accept the home exactly as it is being marketed, you will be a more attractive option and it may help you secure your perfect home when others are also interested, without having to pay more. MAKING AN OFFER Once you have found the perfect home, you will need to put an offer forward to the landlord as quickly as possible, typically the same day. This should outline the terms under which you wish to take the property including your preferred move in date, rental price, and contract period. It is imperative to document everything you would want to be done to the property in advance of taking possession in your offer, but also note that UK renters typically don’t ask for too much so prioritise what is really important. It is common to offer a small discount on the asking price and to negotiate. For popular homes, you may need to pay the full asking price and properties can even go to bidding wars depending on the popularity of the location and local market conditions. You can put the offer to the landlord’s agent directly or your Search Agent will talk you through all the options and put this forward on your behalf. It is usual in London for a property to be listed with more than one agent which means it is vital to express your interest at the earliest stage possible.

QUESTIONS TO CONSIDER • Management - Who manages the property? Is it the landlord, the agent or a property management company? Ask about the speed for issues being resolved and reviews. • Contract term - What is the contract term and what is my protection for increases in the price beyond that term? 1-year contracts with a sixmonth break clause are typical and allows you to get out if it turns out to be a bad decision. Protection by having a cap on future increases can also be helpful to include in the contract. • Furnished, partly furnished or unfurnished In the UK, particularly in London it is common to find fully furnished apartments. This can be an easy way to step straight into a home without having to think about appliances or furniture. You can sometimes negotiate changes, but this must be done up front as they are unlikely to agree to changes (even removing small things) if its not agreed at contract stage. • Condition - does anything need to be painted, repaired or replaced to ensure it is the standard you would expect? Typically, UK landlords don’t paint in between tenancies and replacing old appliances can be a battle once you are in, so note anything you would want upgraded in the viewing and ask the agent if the landlord is open to improvements. • Why they should choose you - In a competitive market, flexibility can be important, so it’s important to use viewings to find out from the agent what is important to the landlord. If you are willing to compromise on the

ADMINISTRATION Once terms are agreed you will need the following (quickly!) in order to secure the property: Reference contact details - most likely you will then need to complete a reference application form, or the agent may request letters from the following: bank/ employer/previous Landlord/personal reference). ADMINISTRATION FEES From June 1st 2019, the rules around Administration fees in the UK are changing. You can read about the latest guidance on the Residential Landlords Association website. Prior to that date, they would typically include agents’ charges for preparing the tenancy paperwork and other extras: • Tenancy Agreement (approximately £100 - £250) • References £25 - £50 per person (as above) • Independent Inventory - The condition and furnishing of the property at the commencement 29

and end of the Tenancy should be checked by an independent clerk. The 2 x Inventory checks are split between Landlord and Tenant (often 1 x each) and will be approximately £100 - £150 each depending on the size of the property.

INSURANCE Whilst the Landlord is responsible for insuring their own property, please note that it is the Tenants responsibility to insure their own belongings and to cover any damage that does not come under the remit of ‘Fair Wear & Tear’. This comes under ‘contents insurance’ and should be taken as soon as contracts are exchanged.

RENTAL AND DEPOSIT FUNDS It is standard to pay a 6-week rental deposit plus the first rental instalment (often monthly) in advance prior to moving into the property. Please note these must be showing as cleared funds prior to the commencement of the Tenancy.

FURNISHED/UNFURNISHED? This can be confusing! In London it is not cheaper to rent an unfurnished apartment. The same property could be offered furnished or unfurnished and this will not affect the price. Most 1-bedroom apartments are offered furnished as there is a higher demand for furnished apartments as they tend to be higher turnover. Most family properties come unfurnished again to meet demand. In 2 and 3 bedroom properties you will find more of a mix of furnished and unfurnished offered. Please note however, if you view a property which is offered as unfurnished apartment and request it is furnished (or indeed vice versa), this will often increase the rental to cover the landlord’s costs for furnishing/storage. ‘Furnished’ covers all the larger items and often kitchen basics. It also typically includes all your electrical appliances, which can be helpful if you are moving from the US or other location with different electrics. You can typically ask for the inventory list so you can make sure you know what it includes and doesn’t include. ‘Unfurnished’ covers white goods carpets and often window dressings, however, the extent of furnishing and finish will depend entirely on the landlord and can vary – if you require something that isn’t in the apartment you must request it when you put an offer forward.

CONTRACT A ‘standard’ lease is often one year. You can also request options are written into your contract such as ‘Option to Renew’ which give the tenant the right to extend after the first year within certain guidelines and some landlords may consider a ‘break clause’ which allows you to terminate a contract after 6 months. These are all specific clauses which will have to be negotiated as part of the contract process. UTILITIES Usually the rental price advertised is ‘pure rental’ and will generally not be inclusive of any bills. As the tenant you will be responsible for Gas, Water, Electricity, Water Rates, and the Council Tax. You can ask for previous history and expected costs in advance, but unfortunately most of these are fixed and will depend wholly on the level of usage. The Council Tax which will be the highest charge is a property tax which is fixed by the local Council and will depend on the size and value of the property, as well as number of people living in the home. You will also need to take into account the telephone line rental and call charges, internet/ broadband rental and cable/satellite television providers who will charge according to the package you take. Many tenants choose to pay all these bills as a monthly direct debit.

RENTAL BUDGET - HOW MUCH SHOULD I PAY? One of the first questions you will be asked is ‘what is your budget?’ and Agents are often asked ‘how much should we pay?’ This varies for each individual. Be prepared in London, it is most usual to pay a higher proportion of your salary than you may do in other cities/countries. As a guide MANY referencing companies deem it necessary to earn a salary which equates, at least twice the amount of your rental per annum to pass references. If the

TELEVISION LICENCE In the UK it is also a requirement to purchase a Television licence. Full details can be found via www.tvlicensing.co.uk. 30

• Be Prepared - Once the terms are agreed you will usually need to complete references and pay an administration charge in order to secure the property. The agent will usually request letters from your bank, employer, previous Landlord and a personal reference in order to confirm you will be a suitable tenant and able to meet the rental payments. • Read the Contract - Ensure any terms you agreed (such a repainting, the provision or removal of certain items etc.) are included, and don’t be afraid to ask for an explanation. Finally, once the contracts has been signed and you have collected your keys one of the final administrative chores is to acquaint yourself with your local pub in order to truly settle into British Life, only then should you unpack - good luck!

rental is above this proportion then they will class a ‘fail’ for references and a Guarantor or extra rent in advance will be recommended. A GUIDE TO RELOCATING TO THE UK Relocating into the UK for the first or even the second time can be a confusing time. It can be a struggle managing the needs of their family with the expectations of your company. Finding a home that meets the needs of the whole family can be a demanding task for all but the most hardened international executives. TIPS FOR YOUR RELOCATION: • Be open minded - London remains one of the most expensive cities in the world. It can be an exciting, beautiful, fascinating city, but you will not get a 4-bedroom apartment in central Chelsea for £2000 per month (it will likely be double that). You might however, get a fantastic 1 or 2-bed apartment overlooking the river in Putney, a charming maisonette in Wimbledon, or a small studio off the Kings Road. If you are willing to live outside of London and commute in, you will find more affordable options. • Plan your time well - The London rental market moves very quickly and as a general rule the earliest you should start viewing apartments would be 4 – 6 weeks prior to your move date. Any earlier, and Landlords often don’t market them earlier and are often unwilling to wait. Try to explore areas of interest ahead of time so you don’t need to rush a decision. Stay in a home in the area when you visit, have coffee in the local café, try the commute from the office – could you do this every day? The average commute in London is 45 Minutes. • Choose who you work with - The most important step is to choose your search agent carefully they should be a member of ARLA or NAEA both of which are recognised industry regulatory bodies and provide recourse should things go wrong. • Be clear about your expectations - Once you have viewed and made your decision you will then need to work with your agent to put an offer forward to the landlord as quickly as possible. This should outline the terms under which you wish to take the property, rental price, length of time, any requests etc. In most cases the Agent is working on behalf of their client the landlord, so be clear on your expectations.

Merilee Karr – Founder and CEO, UnderTheDoormat UnderTheDoormat is a professional homestay company, delivering the quality of a hotel in the comfort of a home. The Founder, an American Expat herself, understands what moving to London is like and the company often works with families moving to the city, both during their initial visits as well as during the first 1-3 months when they arrive. They can help you stay in real homes in the areas you would like to consider living so you can get a feel for what is important to you in your longer-term home. It also means that you can arrive to a beautiful home as of the UnderTheDoormat homes are 4 or 5* quality so you can rest assured it will be a high-quality experience and you will have a specialist team looking after you during your stay. By staying in real London homes, you can feel a part of your new city from your first visit. Every home we feature is hand-picked for its character – in vibrant neighbourhoods filled with personality. Our aim is to provide the amenities of a hotel, but without the cookie cutter experience, which is why we include fresh towels, linens, toiletries and employ a housekeeping team to deliver a professional clean after your stay leaving you with a few less things to worry about when you visit or arrive to your new city. Website: www.underthedoormat.com 31

SERVICED APARTMENTS

Having your own kitchen is a key benefit of a serviced apartment. The ability to cook for yourself, means you’re not beholden to restaurant opening times, and can prepare food both to your liking and budget. You can also familiarise yourself with local supermarkets and shops, allowing you to get to grips with their layout, locality and offerings. This will serve to put you in good stead when you do eventually move into your permanent accommodation, as the weekly shop will have become a familiar experience, allowing you time to focus on familiarising yourself with other aspects of your new residence. Another thing to bear in mind, is that as an expat, there’s a good chance that it’s not just a case of moving on your own, but with children possibly part of the relocation conundrum. Staying in a hotel is far removed from a normal routine, whereas a serviced apartment allows you to provide your family with some semblance of a home life. Opting for a two or three bedroomed apartment gives children their own space, but within a contained area – allowing you to keep an eye on them. Booking into a serviced apartment near to your work also means you’re closer to your family in those early, often unsettling days.

Relocating from one country to another can, at times, feel overwhelming. There is a myriad of things to do and to sort out – with arranging where to live a primary concern. Searching and securing a permanent home is a tall order when doing so from hundreds, if not thousands of miles away. While most of us enjoy a hotel getaway, a prolonged stay is far from ideal – even if the initial convenience is a major selling point. A perfect stepping stone for expats, who are looking beyond a hotel but not quite as far as permanent accommodation, is to look to a serviced apartment; the benefits of which are manifold and, indeed, offer the best of both worlds. On the one hand, you get the hotel treatment, in so much as freshly made beds and at least weekly cleaning, while on the other you get added space, greater privacy and a true sense of a home-away-from-home. With a serviced apartment being a selfcontained, fully furnished flat, you also get your own fully-equipped kitchen – which means you aren’t dependent on restaurants, room service or dipping into the hotel mini-bar; the cost of which can soon add up. 33

Having the opportunity to meet for lunch, and with less of a commute, gives you more time to sit down and discuss the plans and requirements that have been presented since taking those first steps into expat life. In a similar vein to that of cooking for yourself, laundry is another aspect where serviced apartments differ from that of hotels. While the majority provide a laundry service, many serviced apartments also include washing machines and tumble dryers, which means you can opt to do your own – something potentially more appealing to expats than casual apartment guests. Getting back into routine with daily chores can help you to settle into the rhythm of day-to-day living in a new country, while to further add to that homely feel, some apartment providers even offer the chance to hang a piece of your own artwork, embellishing that sense of domesticity. Stepping away from the traditional aspects, many apartments provide the latest mod cons, including keyless entry systems, complimentary guest smartphones, tablet controlled rooms, mood lighting and more – with high speed Wi-Fi pretty much as standard. These accoutrements are something that may take a while to appear in your new permanent home, but a serviced apartment allows you to hit the ground running. Another key benefit is that it’s possible to book for prolonged stays (as well as short ones!) with the cost tending to reduce the longer the stay, while all utility bills are covered within the upfront costs; meaning there’s no risk of racking up unexpected bills by overdoing the mod cons!

You can also have additional time to research the necessary utilities and services that you’ll need to get started in your permanent home, safe in the knowledge that you’ll have electricity and heating already connected in your serviced apartment. KEY THINGS TO LOOK FOR WHEN BOOKING A SERVICED APARTMENT • Try to book directly with the company that owns and manages the property you'll be living in. They will know more about it than anyone else and be in a better position to help you solve any problems or issues experienced during a stay, while also able to advise on local amenities and attractions • It is worth checking to see if the provider is a member of the Association of Serviced Apartment Providers (ASAP). If they are, you will know that they are Quality Accredited committed to the highest standards of customer satisfaction, and are accountable for what they provide to an independent assessor • Get them to send/email you their terms and conditions – so you understand where you stand in respect of the cancellation and/or early departure • Find out what extras you're likely to be hit with – good service providers should provide most things for free such as broadband internet, satellite television and weekly cleaning. THINGS YOU SHOULD EXPECT TO PAY FOR: • Personal Laundry • Airport transfers

A GLOBAL ALLIANCE FOR A RAPIDLY EXPANDING SECTOR With regard to hotels, most of us know where we stand and what to expect, wherever we are in the world. Serviced apartments, however, aren’t so universally recognised. The concept of a serviced apartment is still one that needs a degree of education, with many unsure as to what falls under their umbrella. ASAP is the driving force behind a global alliance that looks to present a unified message. Representing member organisations in 19 countries around the world, and undertaking activity in New Zealand, Australia, South America and Asia, ASAP has already been connecting with like-minded associations, including the CHPA (Corporate Housing Providers Association) in the US and Canada, as it bids to extend its remit for delivering minimum quality standards. With an ethos that focuses on ‘staying with confidence’, ASAP wants guests who book with serviced apartment providers to be confident that they’re staying in safe, reputable accommodation that delivers what the guest was expecting at the time of booking – wherever they are in the world.

• Telephone calls. It’s worth considering that if you expect to make a lot of calls then check to see if they are being marked up like hotels (many providers don't charge more than cost price and some even offer significant discounts on overseas calls so you can ring home in comfort) • Establish what ‘starter pack’ will be in the apartment when you arrive. These can vary enormously, and well thought out provisions can make settling in to your new ‘home’ easier. Some companies will provide many essentials such as washing powder and dishwasher tablets, and even beer/wine and your first meal. This will avoid the need to rush out before you've unpacked to find the nearest supermarket • Find out if you will be met on arrival and shown how things work by a member of the company – or if you'll just be expected to pick up the keys and sort yourself out. QUALITY ACCREDITATION – STAY WITH CONFIDENCE! Serviced apartments are on the rise. In the UK alone, more than 2,000 new apartments were established in 2018, and it’s a trend that’s taking hold world-wide. To try and ensure a minimum standard of service in the face of such expansion, ASAP provides an accreditation programme where operators (those who run the apartment) or agents (those who handle the booking), have to demonstrate that they comply with all of the key legal, health and safety, and duty of care requirements. Validating these aspects with ASAP enables them to display the ASAP ‘Quality Accredited’ marque – allowing prospective guests to recognise that they’re dealing with a legitimate and above board partner. If you’re looking for a serviced apartment as a staging post in which to begin a new life in a new country, then the ASAP marque will indicate that the provider of the chosen accommodation is reputable.

AN ONLINE DIRECTORY As part of its bid for guaranteed standards ASAP has also recently launched an online directory, which is set to make Quality Accredited agent and operator members more visible, pointing those wishing to book apartments in the direction of those operators and agents they can trust. The directory contains quality accredited operator and agent companies that are reliable, safe and dependable and is also easily accessible for prospective guests to reassure themselves that they’re booking via a legitimate operator. It offers the fantastic opportunity for consumers to research the offerings and locations available as well as being able to directly contact those companies who can assist in the accommodation requirements of relocation. The ASAP directory can be viewed via www.staywithconfidence.com. 37

TAX After a major overhaul of the tax rules relating to expats living in the UK two years ago (some of which is still the subject of uncertainty), the past year has been relatively quiet in terms of new developments. It is almost as if the Government has been preoccupied with other matters! As a result, this article takes a look at some of the aspects of the UK tax regime that may be of particular interest to expats living here.

the UK for income tax, capital gains tax, and inheritance tax purposes. THE ADVANTAGES OF BEING AN EXPAT If you are an expat in the UK, there are a number of possible tax planning opportunities to consider, provided of course that you are able to navigate what are often staggeringly complex rules and regulations. Here we will focus on just a few of the key advantages.

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 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 majority) 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. Expats who have been in the UK for several years should also be aware of the concept of “deemed domicile”. Broadly speaking, this means that any person who has been resident in the UK at any point in fifteen out of the previous twenty tax years will be treated as domiciled in

1. THE “REMITTANCE BASIS” The “remittance basis” of taxation 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 on the condition 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 simple, doesn’t it? Unsurprisingly, the way in which the remittance basis of taxation works is nowhere near as simple as perhaps it might be. Firstly, there is the question of what actually constitutes a remittance to the UK. Aside from the obvious case of moving money from an offshore account to a UK account, there are a raft of other scenarios which can constitute a remittance to the UK including: using an offshore credit card to fund purchases in the UK, and paying the bill from an offshore account; borrowing money using offshore assets as security and bringing the loan principle into the UK; and buying a property financed by a mortgage, and using offshore funds to service the mortgage. 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? This is where life gets extremely complicated, especially where the source of the offshore money consists of a mixture of income, capital gain, and ‘clean’ capital. There 39

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.

are detailed rules setting out the order in which funds are deemed to be brought into the UK, which are designed to result in the most favourable result for HM Revenue & Customs. Thirdly, and particularly for those who have been in the UK for more than seven years, there is a price to pay! (i) 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 £123,700, and is not applicable to any individual whose income exceeds £123,700. However, for remittance basis taxpayers however, there is no personal allowance available regardless of the level of their income. (ii) Any non-domiciled individual who has been resident in the UK in at least seven of the previous nine tax years, is subject to 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 £60,000 for people resident in the UK in twelve of the previous fifteen years. Once a person becomes deemed domiciled in the UK, they lose the option to claim the remittance basis of taxation.

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

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

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 41

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 ‘revocable life trusts’ 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.

of an investment in an offshore fund is taxed as income (at rates of up to 45%) instead of capital gain (at rates of up to 20%). However, the fund is able to apply to HM Revenue & Customs for “reporting fund” status. Any funds which are granted this status are then treated for tax purposes in the same way as UK funds. Helpfully, HM Revenue & Customs do publish a list of these funds. 3. EMPLOYEE STOCK OPTIONS Employee stock options are nothing new, and certainly nothing that are specifically an issue for expats. 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, since April 2015, any stock options exercised in the UK are (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 2014. If you exercised the option on 30 June 2018, two thirds of the income on exercise would be subject to UK income tax.

2. THE “OFFSHORE FUND” RULES The use of collective investment funds such as unit trusts, investment trusts, exchange traded funds, and mutual funds has become increasing commonplace in the UK and elsewhere around the world. Aside from offering investment diversity, these funds are generally tax efficient for UK taxpayers, if the fund itself is established in the UK and meets certain requirements with regard to the income it distributes to its investors and the information that it reports. For expats with investments in such funds outside the UK, there are potential tax issues that warrant some consideration. The reason for this is that offshore investment funds do not necessarily have to meet the same standards as their UK equivalents in terms of distribution and reporting. As such, they could be seen as vehicles for tax avoidance or tax deferral. UK tax law addresses this issue in two ways. By default, any gain realised on the disposal

For more information, please contact: Matthew Edwards Senior Tax Manager Satis Asset Management Ltd Tel: 020 7004 7126 Email: matthew.edwards@satisuk.com 43

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

UK INHERITANCE TAX FOR US EXPATS The following is designed to provide general information for those independently relocating to or residing in the United Kingdom and does not constitute legal advice. As with all legal issues, seeking specific guidance from qualified counsel is advisable. A high degree of similarity exists between the United States and the United Kingdom with respect to the ability to freely transfer assets upon death. Neither country maintains forced heirship rules and generally grants decedents the right to choose who the will receive the assets they have acquired during their lifetimes. Spouses and children are only protected from disinheritance in a small number of scenarios and these restrictions can often be easily drafted against in an estate plan. While no stark distinctions exist with respect to the right of decedents to alienate assets, considerable differences exist between the US estate tax and the UK inheritance tax systems. The Tax Policy Center has projected that following the implementation of the Tax Cut and Jobs Act at the end of 2017, less than 1,700 households in the United States will face estate tax - roughly 0.1% of taxpayers[i]. A number of US states do maintain their own variation of estate or inheritance tax, but exposure to federal estate tax is a concern for a very small number of Americans. Alternatively, with a projected 4.2% of UK deaths resulting in an inheritance tax liability based on the most recent statistics published by HMRC, a decidedly higher number of British-Americans will face exposure to such taxes.[ii] This means that the need to actively plan against inheritance tax could become a concern for Americans and their families after a move to the United Kingdom. The following will provide a general overview of the applicable estate and inheritance tax guidelines in both countries and identify several tips for Americans to consider if they expect their beneficiaries to face UK inheritance tax exposure in the future.

DOMICILE The obligation to pay UK inheritance tax is based largely on the concept of domicile. Individuals who are determined to have acquired domicile in the United Kingdom will generally face exposure to inheritance tax on their worldwide assets, if valued in excess of relevant thresholds. Alternatively, nondomiciled individuals pay inheritance tax only on assets situated in the United Kingdom. Domicile can be described as an individual’s true, fixed, and permanent home. It is the place to where he or she intends to return whenever absent therefrom. A highly fact-intensive analysis is required that accounts for personal, family and economic connections to the country. An individual’s subjective intention is highly relevant to this analysis and formal positions or statements that have been made that provide insight into this state of mind will be the most powerful. Due to the complicated and potentially arbitrary analysis confronting taxing authorities in attempting to determine the domicile status of any individual, the United Kingdom has established a deemed domicile rule that finds UK domicile to arise following UK residence status during 15 of the prior 20 years. This would mean that irrespective of any continued and enduring ties that may remain with the United States, UK inheritance tax will arise at this point in time. The deemed domicile rule creates a clear line for determining when such status has arisen in factually complex cases, yet it should be noted that Americans can still establish domicile in the UK by choice much sooner if the facts would speak to such a conclusion. US ESTATE AND GIFT TAX GUIDELINES For 2019, the lifetime exemption from estate and gift tax for citizens and residents of the United States increased to $11.4 million. As US married citizens can pass any unused exemption on to their surviving spouse, the threshold is effectively $22.8 million for married individuals. The threshold applies to both bequests made at death as well as lifetime gifts in excess of an 46

encounter the same predicament. The threshold for inheritance tax in the United Kingdom is set decidedly lower at £325,000. An additional £100,000 allowance is permitted to cover a Taxpayer’s personal residence, bringing the total exclusion to £425,000. Assets held in excess of this rate are taxed at 40% rate. Similar to the US system, unlimited transfers can be made to spouses who are also domiciled in the United Kingdom, effectively deferring the UK inheritance tax exposure until the second spouse dies. Still, any wealth passing between generations is likely to face considerable exposure to inheritance tax. For many American expats who have moved to the United Kingdom permanently, the exposure may seem inevitable, but three notable distinctions from the US system may still allow for robust planning opportunities: lifetime gifts, excluded property trusts, and pension schemes. Lifetime Gifts. Gifts of any amount are not taxed in the United Kingdom unless made within seven years prior to the donor’s date of death. This situation creates an opportunity for those with considerable wealth to develop lifetime gifting plans to transfer assets to younger generations of their family without creating the same exposure that would arise for transfers made at death. Transfers to Trust. Americans who maintain assets outside of the United Kingdom do have the ability to establish an “excluded property trust” which will have the benefit of protecting these assets from UK inheritance tax if the trust is settled prior to the acquisition of UK domicile status. To qualify, among other requirements, the trust must be funded with non-UK assets prior to having acquired UK domicile. UK-domiciled individuals who fund discretionary trusts will attract a 20% tax on the transfer. Yet, with a rate at half of the 40% rate that would apply to a transfer at death, the potential tax savings will still make this a viable strategy even after UK domicile is found. As with lifetime gifts, if the donor passes within seven years of having made the transfer, additional taxes could be due beyond the 20%. Pensions. The inheritance tax rules applicable to pensions can also be complex,

annual gift tax exclusion. Once the annual and lifetime thresholds are passed, gifts and bequests are taxed at a rate of 40%. Notably, the increased thresholds established under the Tax Cut and Jobs Act will expire in 2026 at which point the exemption will revert to pre-2018 levels of $5.49 million per individual, with adjustments for inflation. The annual gift tax exclusion permits US citizens and residents to gift up to $15,000 (2019) every year to any number of individuals. Gifts to any single individual in excess of this amount are offset against the lifetime allowance and would not result in taxation until $11.4 million in lifetime transfers have been made. The practice of gift splitting allows spouses to gift up to $30,000 each year to any individual without using any portion of the lifetime exemption. Gifts and bequests between US citizen spouses qualify for the unlimited marital deduction and are not subject to either estate or gift tax, effectively deferring any estate tax responsibility until the death of the surviving spouse. However, the marital deduction is applicable only to transfers between citizen spouses, with transfers to noncitizen spouses subjected to an annual limit of $155,000 (2019). Nevertheless, when a situation arises where estate tax would potentially be due on account of the inability to transfer assets freely to a non-citizen spouse, a qualified domestic trust (QDOT) can be organised to create parity with marriages where both spouses are US citizens. Nonresidents of the United States are subject to estate or gift tax only on US-based assets but face a considerably lower exemption threshold of $60,000. With these high thresholds in place, US citizens seldom need to worry about US estate tax exposure and can focus instead on simplifying the mechanics of passing on their wealth to their beneficiaries and ensuring their families do not need to go through the hassle of opening a probate estate. American expats in the United Kingdom may not be so lucky. UK INHERITANCE TAX GUIDELINES A vastly larger percentage of British nationals will face exposure to inheritance tax in the United Kingdom, meaning that Americans who have relocated on an indefinite basis will 47

but legislation from 2015 provides protection against inheritance tax for many UK pension schemes. For individuals passing away before the age of 75 who hold qualifying pension funds, the account can be passed to beneficiaries free of both income and inheritance tax. Beneficiaries who inherit pensions from individuals passing after age 75 can generally still escape inheritance tax but will face income tax exposure once they begin taking distributions from the account. By contrast, in the United States, contributory pension arrangements will form part of the decedent’s taxable estate and distributions to beneficiaries in later years will still be subjected to income tax. With the low inheritance tax thresholds in the United Kingdom, the best strategy for reducing the responsibility to pay to UK inheritance tax would simply be to take steps to avoid the acquisition of domicile. Even so, an American who is not domiciled in the United Kingdom would still potentially face inheritance tax on assets situated in country at the time of their death. Fortunately, unlike in the United States, non-domiciled individuals will be afforded the same £325,000 exemption that UK-domiciled individuals benefit from. In conclusion, the following summarises the best avenues for Americans who have settled in the United Kingdom to minimise their exposure to UK inheritance taxes: 1. Avoid establishing domicile in the United Kingdom until determined that you will not be returning to the United States. With careful planning, the establishment of UK domicile can be avoided until the deemed domicile rules become operative after 15 years of residency. 2. Consider creating an excluded property trust in the United States prior to the acquisition of UK domicile. If the prospect of acquiring UK domicile is inevitable and a move back to the United States or to another country is not on the horizon, establishing an excluded property trust with non-UK assets could protect your beneficiaries from significant exposure to inheritance taxes. Due to complexities, American citizens

will encounter when funding foreign trusts, organising excluded property trusts outside of the United States will generally not be a tax efficient approach. 3. Consider making lifetime gifts to beneficiaries as part of your estate plan. While US citizens making gifts in excess of $15,000 may need to file a gift tax return, no gift tax will be due until the generous lifetime exemption is fully utilised. Surviving seven years after having made a lifetime gift has the result of fully eliminating any exposure to UK inheritance tax on those amounts. 4. Understand how any pensions you have funded in the United Kingdom will be taxed to your beneficiaries from both an income and inheritance tax perspective. Maximising contributions to UK pensions can have the potential to greatly reduce inheritance tax exposure in addition to the ongoing income tax benefits created. References: [i]Only 1,700 Estates Would Owe Estate Tax in 2018 Under the TCJA, Tax Policy Center, Howard Gleckman, available at: https://www. taxpolicycenter.org/taxvox/only-1700-estateswould-owe-estate-tax-2018-under-tcja [ii]Inheritance Tax Statistics 2015 to 2016, HMRC, available at: https://assets.publishing.service. gov.uk/government/uploads/system/uploads/ attachment_data/file/731610/Inheritance_Tax_ National_Statistics_Commentary.pdf Expat Legal Services Group offers unique legal services for American expatriates and foreign nationals with financial interests in the United States. Our firm serves the expat community in the areas of international tax, immigration law, and cross border business and estate planning using a suite of modern technology solutions. Contact Expat Legal Services Group today at info@expatlegal.com or visit our website at expatlegal.com. The choice of an attorney is an important decision and should not be based solely on advertising. 48