John Jenner International Limited
Money Management for the Internationally Mobile
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FINANCIAL  PLANING  NOTES 
for
BRITISH  EXPATRIATES
 
 
 
    Most expatriates are in the fortunate position of having more disposable income than their stay-at-home friends and colleagues.
 
    As a British expatriate you are particularly fortunate in that as a non-resident of U.K. you are not subject to U.K. income tax on earnings except for any that actually arise in Britain.
 
    It makes good sense to direct some of that disposable income to an organised savings programme so that in the future you will enjoy the financial benefits that you worked for overseas.
 
    Suitable and attractive ways of doing that are to be found in the sections of our web site listed in the menu on the left.
 
    John Jenner International has been operating in Asia For close on 20 years and now has clients spread all around the world. 
 
    As well as the investment and savings ideas we outline on other pages of this site we give below comments on some related topics that will be of interest to British Expatriates.

 
U.K. State Pension

Don't, as do so many, dismiss it out of hand as of little or no value.

Current rules make it Surprisingly Good Value.
The common perception is that making voluntary pension contributions is:
  • "A Waste of Time" because "The pension is tiny";
  • "There will be nothing there by the time I'm 65";
  • "I plan to retire outside of U.K. so they wouldn't pay me the pension anyway"
  • Whilst it is true that changes in the structure of the state pension are almost Inevitable we believe most British expatriates should be making voluntary contributions.
    The idea that the state pension will not be paid to anyone resident in another country is completely wrong. The pension will be paid monthly and tax free into any bank account anywhere. Whether or not annual 'escalation' applies depends on where you live.
 
    Until April 2000 expatriates could keep alive their state pension rights by making Class3 Voluntary contributions currently £12.05 per week = £626.60 p.a.
 
    Since April 2000 almost all expatriates qualify to make voluntary contributions at the 'Self Employed' rate - currently only £2.40 per week = £124.80 p.a..
 
    At that rate even reduced benefits will be a bargain and every British expatriate who has not done so should start contributions.
 
    If you are, like many, still paying Class 3 Voluntaries at the rate of £626.60 p.a. you can save over £500 per year simply by changing to Class 2 contributions.
 
    Don't expect the DSS to tell you about this and offer to save you money.
 
For details on just how to go about starting or changing to the lower contribution rate please use our 'Send us Your Query' form or click HERE.  If possible, include your NI Number. 
   
PROPERTY and MORTGAGES
 
Expatriates often seek to buy residential property either back home or in another country.
 
U.K. Residential Property

Obtaining a mortgage for purchase of a property in U.K. when you are not resident there is not quite as straightforward as it is for a U.K. resident. The local high street building society may generally give an excellent service to local people but is seldom familiar with the special situation and needs of the expatriate.
 
John Jenner International has good contacts with a number of of lenders who specialise in dealing with the special needs of expatriates. We can survey the market for you and obtain quotes for your consideration. We can also clarify the tax implications.
 
Property in Other Countries
 
Arranging a mortgage for someone who is a national of one country, living in a second and buying a property which may be located in a third requires experience of the international lending scene.
 
At John Jenner International we are well versed in this field. We have excellent contacts with many international banks and other mortgage providers and can help you find the best deal. Some of the basic questions that arise are:
  1. Is it possible to borrow in the country where the property is situated and, if so; is that the best course of action?
  2. Is the property to be owner occupied or rented out?
    If rented out what are the income tax implications?
  3. What are the capital gains tax and estate tax implications?
  4. Would it be best to raise a loan secured totally or partially on the value of other property situated elsewhere?
  5. Could you use another form of security such as an investment portfolio? This is often quicker, easier, less costly and more flexible.
  6. Should the currency of the mortgage be that of the country where the property is situated, the currency you earn or that of your home country? What about a managed multi-currency mortgage? That can be profitable but carries risk.
  7. And, very important, are you clear about the rules in the host country with regards to land holding, estate duty, etc. For instance, can you will the property to selected family members. In some countries  with 'forced heirship' laws that is not possible.
We can help you raise a new mortgage or refinance an existing loan in order to release capital.
 
NOTE: the world liquidity crisis  has complicated this whole area for the time being (post October April 2008).
 
It is proving much more difficult than of late to arrange loans of any kind.
 
However, the situation is by no means impossible in many cases and well worth a try because, although we think residential property values may still have some way to fall buying now is at comparatively low prices.  
  
  
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