Repatriating to the UK? Discover 4 issues that could determine where you live

As a British expat currently living in Hong Kong, it’s possible that you might be considering repatriating to the UK at some stage in the near future.

You could be at the end of a fixed-term contract with your employer, or you may well be getting close to a retirement that you’d always planned to spend in the UK.

Furthermore, you may have realised that the recent changes announced in the UK Budget on 30 October regarding the tax status of non-doms actually provide some valuable certainty around how you will be taxed on your return to the UK.

For example, the fact that it could be 10 years after your return before you become liable for Inheritance Tax on your offshore assets, and that you won’t pay Income Tax on overseas investments for up to four years, may make your return to the UK easier to plan for than may have previously been the case.

Regardless of the reasons, and whether your return is imminent or still some way off, repatriation is something that you need to plan carefully, and one of the most important considerations is where in the UK you are going to live.

To help you with your decision-making, here are four factors that could influence your decision.

1. Your work may dictate where you live

If you’re returning to the UK to work, and will be office-based for at least part of the working week, then the decision on where you live may well be simplified.

It will most likely mean that you’ll need to base yourself close to your place of work, which is likely to be in London but also perhaps Bristol, Birmingham, or Manchester.

It makes sense to minimise the time you spend commuting to and from the office if you can, so you will probably want to be looking either in the relevant city itself or one of the surrounding commuter towns or suburbs.

In London, for example, this could mean somewhere like Sevenoaks, Tunbridge Wells, or Amersham – all of which are within an hour of the centre of the city.

However, if you only need to be in the office infrequently, and you do have an existing property to move into that you already own that is some distance from where you will be working, you may want to consider investing in a pied-a-terre. A small flat close to your office could double as a handy base for you during the work week, plus a central location you could use when you are visiting the city for other purposes.

2. You may already have an existing property in the UK

If you have only been out of the UK for a short period, you may already own a property there that you have always intended to move back in to.

This will clearly make the transition from Hong Kong to the UK easier, especially as you are likely to know the area well so the geographic acclimatisation will be straightforward.

Furthermore, if you lived in a property before relocating overseas, reoccupying that same property on your return can come with tax advantages around the preservation of private residence relief for the period spent offshore.

You may also have social networks there you can immediately tap into.

However, you will clearly need to plan ahead to ensure it is ready for you to move into on your arrival. For example, it may have only been used or visited sporadically by other family members or friends, so you will need to confirm everything is in order.

Alternatively, you may have been letting it out to create a rental income, so you will need to ensure the property is vacant, cleaned, and ready for you to move back into. Given the recent changes made to “no-fault” eviction legislation, this highlights the importance of planning ahead in this regard.

However, you may well feel that it’s time for a change of scene and be looking for somewhere new to lay down roots after time spent abroad, so you may want to continue letting it out – perhaps as the start of a buy-to-let portfolio – and look for a new property to live in.

3. You will need to take account of the wishes of family members

As you have read, if you are the main breadwinner in your family, and will need to travel to your place of work, then the decision on where to live is likely to be a straightforward one.

However, if you do have an element of flexibility when it comes to choosing where to live, it will be important to take the views of other family members into account as part of your decision-making.

For example, your spouse or partner may prefer the access to an instant social circle, which could mean they prefer to return to where you lived before.

Additionally, if your children are still in full-time education, this may have a bearing on where you may want to live, at least until they leave school. You may want to consider paying for them to be educated privately, and if so, you will want to think about the catchment area of certain schools and colleges.

You will also need to think about other family members. For example, you may have elderly relatives who may require family support in lieu of care provision, so living within close proximity of them could prove beneficial and will likely give everyone valuable peace of mind.

You may also find that other elderly family members could provide a valuable source of free childcare, particularly if you have become used to the services of a helper while you’ve been living in Hong Kong.

5. You may be returning to the UK to retire imminently

It may be the case that, regardless of how long you have spent as an expat in Hong Kong, you have always planned to return to the UK when you’re ready to stop working and start to enjoy your retirement years.

If this is the case, you are likely to have a different set of priorities than if you are continuing to work on your return.

For example, if you have been away from the UK for some time, perhaps decades rather than years, you may feel a pull to the part of the UK where you grew up or spent most of your formative years before emigrating.

As a proud Yorkshireman, and despite having spent some time living elsewhere in the UK, I can relate to that, and “God’s County” may well be high on my list of retirement venues!

Alternatively, you may want to be close to your extended family, as you see retirement as a great opportunity to spend time with relatives you may not have seen much of while you were living overseas.

The weather may also have a bearing on your choice. The southern half of England provides the warmest temperatures, with Devon and Dorset enjoying better coastal areas, while Kent and Sussex benefit from being within striking distance of London.

Find out more

I have previously written a series of articles about various issues relating to a return to the UK after having spent time in Hong Kong that you may find useful.

6 important financial issues to consider if you are returning to the UK

8 of the top places to live in the UK

International movers from Hong Kong to the UK? Here’s everything you need to know

Comparing prices and the cost of living in Hong Kong and the UK