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British Expats Financial Checklist for 2023

2023 is the perfect time to both re-evaluate your options, read our financial checklist to help prepare for a financially smart year.

Written on 16 January 2023

2022 brought nowhere short of a storm of financial change. From increasing interest rates, wild exchange rate fluctuations to rapid inflation, the beginning of 2023 is the perfect time to both re-evaluate your options, as well as thoroughly check you have all the information for a financially smart year.

We have compiled a go-to checklist of some of the highest importance subject areas of your finances that should be checked and evaluated going forward when entering into the new year.

Following these outlines can ensure you can keep a rounded, thoughtful overview of your tax and financial situation, as well as prevent any small and unnecessary costly oversights, with the ultimate goal of reducing your costs, and maximising your income.

Set goals, plan and take action

The first step anybody needs to take when evaluating potential actions for the next 12-24 months is to understand where you want to be in 2, 5 and 10 years.

A New Year is a great time to evaluate and review any financial and personal goals you have and enable you to work with experts for help you create or revise your plans to achieve your goals. Try to avoid running headlong into taking action following the turbulence of 2022 and ensure that any actions you take are in line with your plans and goals.

Ensure you are staying on top of the forthcoming UK tax changes in 2023

In the Autumn Statement, the UK Government announced some significant tax changes which will affect a large proportion of British expats and people with UK connections.

These changes include, but are not limited to:

Lowered Income Tax Additional Rate Threshold

From 6th April 2023, the Income Tax additional rate threshold (ART) is going to be lowered from £150,000 to £125,140.

The changes will apply to all main income tax rates in England, Wales and Northern Ireland and include:

  • Income from employment and pensions
  • Non-dividend income
  • Non-savings

How much this impacts you as an individual will solely depend on your own personal circumstances.

Freezing of Inheritance Tax threshold

Until April 2028, the amount that can be passed on before Inheritance Tax is due, will stay at £325,000.

IHT will remain to be charged at 40% on any assets or cash that you have chosen to be left to someone after the individual dies.

Cuts on dividend tax allowance and capital gains

The annual exemption amount for Capital Gains tax will change from April 2023, dropping down from £12,300 to £6,000, with further cuts due in 2024 in half again to £3,000.

Dividend allowance will also be cut from £2,000 to £1,000 in April, with further cuts to £500 in April 2024.

Speak to a UK tax specialist

If you are unsure about how your tax situation will be impacted, request an introduction to one of our trusted UK tax partners. Your introduction will include a free initial consultation to help determine how tax changes might impact you.

Request introduction to a UK tax specialist >

Ensuring that your money is being transferred as efficiently as possible

2022 saw exchange rates fluctuate wildly, impacting the value of money transfers by up to 25% and while nobody was able to predict the scale of changes, there are tools and services available to minimise significant forex changes.

Whether you are arranging regular international transfers or transferring larger lump sums, using a currency exchange and international money transfer specialist is vital in ensuring you do not cost or lose yourself a penny more than you need to.

People all too frequently lose out when making international transfers, due to their go-to reliance on banks and falling short on sub-optimal transfer rates and transaction charges.

Request introduction to a currency and foreign exchange specialist >

Keeping informed on current mortgage interest rates

After consistent increases in UK house prices over the past two and a half years, the last four consecutive months of 2022 show a steady fall.

However, this is not accurately reflected in the current mortgage climate, with mortgage approvals recently slumping down to their lowest point since the outbreak of the Covid-19 pandemic.

October 2022 shows that the average two-year fixed rate hit 6% for the first time in a massive 14 years. This shift in mortgage rates is significantly affecting buyer affordability, while the Bank of England is showing no signs of reducing the base rate any time soon.

It is therefore wise to explore different avenues and ultimately consider all your options before choosing a product. Speaking to a mortgage expert allows them to evaluate your personal circumstances, including both your current and potential future financial situation and advise on what will be the best thing for you (and your family) going forward.

There is no one-size-fits-all with this type of advice, and really comes down to your own circumstances, so seeking advice to analyse this accurately is certainly recommended.

Speak to a trusted mortgage specialist >

The impacts of continued inflation

Global and local events since 2020 have more shown us more than ever that we do not quite know what is coming next. What we can do is look at both the facts and other estimations based on these, to grasp an idea of what 2023 will look like regarding the cost of living.

Based on the Government schemes being introduced in 2023, the price of energy is not expected to rise so quickly, and we are also looking at positive indicators that imported goods will also slow their increased rates, based on the slight easing of production line difficulties in businesses all over the world.

Speak to an independent financial advisor >

Time to review your insurance policies?

At the time an insurance policy is taken out, your personal circumstances at the time will determine both what you are trying to cover and how much cover you need.

This may not always be the case going forward and reviewing your health insurance, travel insurance and life insurance policies regularly can help ensure you are not paying out and above what you might need right now.

Not reviewing will simply put you at more risk of having either too much or too little cover. Life circumstances are a constant conveyor belt of change and your personal insurance policies should reflect this.

Just some of the things you should consider are listed below. If you have had circumstance changes in any of the below, it may certainly be time to evaluate your current cover and policy specifics:

  • Getting married or divorced
  • Starting or expanding your family
  • Moving home
  • Children/dependents moving out
  • New financial dependencies/debts
  • Changing careers
  • Health/lifestyle changes

Get expert help if you are unsure about any financial matters

One of the best options for anybody is to speak to an expert who can discuss your situation with you and help you evaluate whether there are alternatives available to you that could either boost your income or reduce your costs.

We provide a range of free introductions to trusted experts who will also offer a free initial consultation to discuss your basic situation and help determine whether you have options available.

This article has highlighted a few key introduction services we offer, but to see all the areas our partners can assist, please check out our services page.

See all our free introduction services >

Testimonials from people who have used our specialist IFA introduction service

As an expat who has been living outside the UK for 30 years, it was reassuring to speak to a representative of your company who seemed to have his clients interest at heart, especially when the client has no expertise in finances and investment.

Phil. C. France, Pensions

I found the expert I was looking for and received excellent service.

Patrick N. United States, Investment Advice

I don't normally recommend financial providers to anyone as it is so personal but if someone asked specifically for advice for Expats I would suggest they tried your website.

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