After their eventful departure from the UK in 2020, Prince Harry and Meghan surprised us all again when they announced that they were returning to the UK at the end of August 2026.
That they intended to be back on British soil with their young children – Archie and Lilibet – within a couple of weeks prompted questions and debate about their decision, especially in light of the still-fractured relations with the royal family.
While the announcement was sudden, as financial planners specialising in supporting UK expatriates around the world, we sincerely hope that they started planning for their return many months before revealing their intentions to the press.
Speaking to Hello! magazine a couple of weeks after the family’s return, Harry said, “The last two weeks have been… it’s been eventful. But, you know, we’re getting stuck into the work. Kids are in school. We’re happy […] It’s wonderful to be back on British soil and really nice to see so many old faces and friends.”
If you’ve been living abroad for several years, or even your whole career, returning to the UK to be closer to family and friends may be high on your agenda.
So, here are five practical planning considerations if you’re thinking about moving back to British soil.
1. Take your time and plan ahead
Moving house within a few miles isn’t always straightforward. And moving from one country to another can mean having to navigate multiple issues, often requiring you to make difficult decisions.
So, the sooner you start planning, the better. While the decision to move back to the UK was a surprise to us, Harry and Meghan had likely been planning their move long before the press release landed.
Your to-do list should include:
- Checking you and your family all have up-to-date passports
- Thinking about schooling and term times for your children
- Considering whether you’ll rent or buy (if you’re not planning to move into a property you own).
Typically, the length of time you’ve lived outside the UK will dictate how much time you should allow to prepare for your move.
We can give you clear financial guidance that makes planning for the future simple and affordable.
2. Draw up a budget and get a measure of your expected living costs
To ensure you’re prepared and have a realistic idea of your cost base before the move, draw up a budget detailing your expected income and outgoings.
If you’ve been away from the UK for many years, do your research and figure out living costs for the area you expect to move to.
Living in London or the commuter belt will typically cost more than living in a rural town in the north of the country.
So, rather than having a vague notion, pinpoint an exact location you’re hoping to land in.
Then, work out how much you’re likely to spend on:
- Housing costs (whether on rent or your mortgage payments)
- Fuel, transport, and car insurance
- Utility bills
- Food
- Non-essentials such as entertainment, meals out, or weekend trips to catch up with family and friends.
It’s almost impossible to plan for every eventuality, but having an idea of your expected living costs before you move could not only help you feel more prepared but also bring some much-needed peace of mind during an otherwise stressful time.
3. Review your tax position
Your UK tax liabilities typically depend on your residence status.
As such, if you are returning to the UK:
- After being a non-UK resident for five years or less, you may be considered temporarily non-resident by HMRC. This could mean that certain income and gains you received while living overseas become taxable when you return to the UK. Whether these rules apply will also depend on your UK residence history before you left.
- After being a non-UK resident for more than five years, your tax position will depend on your residence status and the type and source of your income and gains.
- After 10 consecutive tax years of non-UK residence, you may qualify for the four-year foreign income and gains (FIG) regime, so you will not be subject to UK tax on your foreign income and gains or distributions from non-resident trusts. You can take these funds into the UK without attracting a tax charge. When the four-year period is over, you’ll be taxed on your worldwide income and gains, under the normal tax rules for UK residents.
Ultimately, the date you become a UK resident is crucial to your expat tax status, so you need to be aware of the financial implications before fixing the date for your return. To keep things simple, we often recommend returning at the start of the UK tax year (6 April).
We can help you understand your full financial picture and plan for your return to the UK, allowing you to return with confidence.
4. Plan what to do with your overseas pension funds
While it may be possible to transfer an overseas pension scheme into a registered UK scheme, your options will depend on the terms of the pension scheme you want to transfer into.
However, you may struggle to find a pension provider willing to accept the transfer.
When money is arriving from another country, the pension provider will need to carry out anti-money laundering checks to verify the source of the funds being transferred.
In the event that you’ve already started drawing on your pension while living overseas, this may complicate things further as you need to find a UK provider willing to accept the transfer and continue payments in the UK.
You may have a variety of options, but if you don’t seek advice before you return to the UK, you could limit your choices.
We will help you understand all your options and establish steps you should take to protect your retirement savings.
5. Seek expert support and talk to an experienced financial planner
As well as seeking advice from a professional financial planner experienced in advising clients in the UK and the country you are leaving, it’s also wise to engage a tax specialist.
Working with a currency exchange expert can be helpful too – especially if you’re moving significant sums of money between countries, as the exchange rate can make a big difference.
We provide specialist advice to British expats and international employees living around the world.
Many of our planners have been expats themselves and relocated back to the UK, so they understand the issues you may face.
To find out more about how we could help you to execute a smooth transition back to the UK, please get in touch.
Email enquiries@alexanderpeter.com or give us a call on +44 1733 916909.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
