Undoubtedly, there will be many aspects of daily life that Brits will have to adjust to when upping sticks and moving to another country, and financial products and services are simply another part of this.
Your banking issues must be sorted out weeks in advance of the actual move as any problems you run into will be trickier to manage whilst you are settling in abroad. Common sense tells you this, yet over 80 per cent of people push it down to the bottom of their moving checklist.

Offshore banking revolves around the lifestyle you will have once you have settled in abroad. If you have been posted abroad for work then your situation will be hugely different from someone looking to retire abroad or moving for the lifestyle change.

The primary concern for an expat working overseas is most likely to be the ease with which they can switch between currencies, whether they are just popping down the shops or on a business trip to the US. By contrast, those looking to retire abroad will need an account with a stable exchange facility so that they don’t lose out on their pension due to currency fluctuations.

A lot of people will sidestep an offshore account because it’s all too alien to them and are scared they will end up choosing a dud. In fact, the majority of big name banks operate an offshore arm so expats can stay with a provider they trust but tailor their current account to fit their new circumstances. However expats must be aware that the face-to-face and inter-branch contact typical of a UK account isn’t as readily available offshore and you will do almost all of your banking over the internet, telephone or both.

There will come a point where these different sets of requirements will cross over though, normally when it comes to making repayments towards a British mortgage. The key thing is to look at the specifics you require. Just as each UK current account has different features and rates of interest, so will offshore accounts. Don’t be fooled into thinking that every account will follow a standard rate of ‘x,’ or that each one will offer ‘y,’ as this is a big mistake. Instead, make a few phone calls and fully investigate each option.

Currency is also an issue. Most people might think that transferring all of their money into their offshore account is best, as you would when you switched UK bank accounts, with some even withdrawing every penny, especially if selling their home to free up funds for a foreign cash purchase. It’s all very well going down Marks and Spencer or the Post Office to change up your cash for your summer holidays, but when converting large sums this is best done through a specialist such as HiFX or Foreign Currency Direct otherwise you stand to lose thousands.
You will also need to pay attention to your tax liabilities.

Certain offshore institutions, specifically offshore private banks, will focus far more closely on this aspect of moving overseas and offer services which will allow you to effectively mitigate against tax, whilst helping you to re-structure your finances as a whole. Expats must remember that they are now liable for the applicable taxes in their new country of residence, as well as existing taxes on their UK-based assets.

Having your head screwed on as far as tax is concerned is especially important following the recent offshore ‘amnesty’ imposed by HM Revenue and Customs. The amnesty saw the usual penalty charges, which are anything up to 100 per cent of the outstanding amount, capped at only ten per cent. This came after HMRC experienced court success last year with regard to getting in depth information from banks about holders of overseas accounts.

This has become such a pronounced problem due to the tax breaks which holders of offshore accounts benefit from, yet which do not exist onshore. These tax breaks exist to help expats and not hinder them, however it is when they start to be exploited that HMRC step in.

Ultimately moving abroad does not have to be a hardship and there are numerous types and styles of offshore account to suit your changing circumstances. It might be tempting to stick your head in the sand, but by living in denial you will almost definitely be losing money you could otherwise have saved through a simple bit of a research and a quick phone call or two.