Relocating abroad? The financial details many British expats forget

Every year, thousands of Brits decide to leave the British Isles behind in search of a new life overseas, whether that’s in sunny Spain or across the Atlantic to North America. It is a big decision, so it naturally takes some serious time and planning.

So, if you’re relocating abroad and you want to avoid stress as much as you can, these are the financial details many other British expats forget that you certainly shouldn’t.

Organise your life insurance

It is possible for British expats to still attain and retain life insurance from the UK. However, be aware that these often include specialist policies and higher premiums, with some locations coming with higher costs because of the safety and stability. Some locations might be excluded, too.

If you already have a life insurance policy in place, it’s important to tell your insurer about the move, as they may need to make adjustments to your policy, or you might have to find a new one that’s suitable for your needs. Using a broker like Reassured can help you to compare multiple plans. You might even be able to find a plan that covers your expat lifestyle (depending on your circumstances). Alternatively, you have other options like international life insurance, which can cover you no matter where you are in the world.

Submitting a P85 Form to HMRC

Before you officially leave the UK to live abroad, be sure to submit a P85 form to HMRC first. This notifies HMRC that you are leaving the country, while also potentially getting you the tax returns you are owed. It’s pretty simple to do – you can manage it on the HMRC online service website, but you can also send the form via post.

Opening an expat bank account

It’s a sensible idea to open an expat bank account before you move out of the UK. That way, you are better able to manage multiple currencies at once and receive a foreign salary without delay. There are several banks that allow you to do this, including:

• Natwest International
• HSBC Expat
• Skipton International

Keep in mind that you will usually need at least £75,000 in savings before you open an account like this. Despite opening up this new bank account, however, if you plan to maintain your UK life insurance policy, be sure not to cancel your UK bank account from which the premiums are paid.

Sorting out your retirement plan

It’s important to sort out your retirement before you leave the UK. There are several things to consider here:

• Whether you have 35 years of contributions: Only then will you have access to a full pension. You will also need to have contributed for at least 10 years to get any UK pension at all.
• The April 2026 changes: As of early April 2026, there have been some rule adjustments for how expats pay their voluntary contributions. It’s now harder for expats to access the Class 2 contributions that cost around £180 per year; now, most expats have to pay the Class 3 contributions, which amount to around £900 a year, which is significantly more expensive.

Where you are heading will also affect your pension. If you are unsure where you are when it comes to your UK pension, head to the GOV.UK website and go to their Check Your State Pension service. There, you can see exactly how much you have paid so far.