The UK charges no exit tax when an individual leaves. Once you are non-resident, you no longer pay UK tax on income or gains you receive outside the UK. UK land and property stay within reach of UK tax, wherever you live.
But leaving does not end every tie straight away. If you return within five years, gains on assets you already held when you left are taxed in the year you come back. These temporary non-residence rules catch anyone who was UK resident in at least four of the seven tax years before departure. And if you were UK resident for ten years or more, inheritance tax can follow you for between three and ten tax years after you leave.
EU harmonisation makes it harder
What one country does today can become EU-wide law tomorrow. Exit taxation is already harmonised across the EU: since 2020, every member state taxes a company's unrealised gains when its tax residence or its assets leave. Moving within the EU is no escape. Only a move to a non-EU country takes you out of EU harmonisation.
How to plan your move properly
The key is planning early. If you plan your move years in advance, you can set up structures that legally minimise or avoid the tax on leaving. That can mean transferring shares to a holding company, moving assets before you leave, or choosing the right destination country.
Friedrich A. Hennegriff made the move out of Germany himself and knows the pitfalls from his own experience. He advises you on how to plan this step properly.
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