Jonathan Gold

The COVID-19 crisis of 2020 has taken its toll on the world – the tragic loss of life, the devastating social distancing from loved ones and the financial impact on economies across the globe.

Global equity markets fell sharply from the middle of February, with drawdown levels of -35% in just 4 ½ weeks. Volatility reached record levels, higher even than the Global Financial Crisis of 2008. Safe-haven assets including bonds and gold were not immune to the selloffs.

As central banks continue to try and tame inflation by tightening financial conditions, interest rates around the world are at the highest level since the 08’ financial crisis. As such, bond yields rose sharply as sovereign rates climbed higher and now investment grade bonds offer yields not seen for over a decade.

This presents a compelling opportunity to invest in eligible Qualifying Corporate Bonds (QCB’s), these offer a tax efficient return well in excess of most bank deposit rates net of tax.

Conduct proactive residency checks: Don’t assume your residency status is static. Changes in travel or work can shift how you are taxed on worldwide income. Confirming this early sets the foundation for your entire tax strategy.

Coordinate cross-border investments: Many common UK investments can trigger punitive US tax rates, while US funds may be taxed heavily in the UK. Regular reviews are essential to ensure your portfolio is tax-efficient in both countries.

Manage timing mismatches: Because the UK and US tax years don’t align, you can face temporary double taxation. Planning the timing of your income and asset sales helps you better use foreign tax credits to offset these costs

Increased defensive hedging: High-net-worth individuals are moving assets abroad to protect against domestic risks, specifically the potential devaluation of the US dollar.

Political risk mitigation: Growing political polarisation and the fear of future tax hikes on capital gains and estates are driving investors toward more stable or favourable regulatory environments.

Awareness of global tax obligations: Despite moving assets offshore, US citizens remain subject to taxation on worldwide income, necessitating strict adherence to IRS reporting requirements.

You have packed your bags, said goodbye to the place you have called home for the past ten years, and made the move to the UK, land of drizzle and double-decker buses. Welcome (or welcome back)! HMRC has a shiny new tax regime just for you – and it is called the Foreign Income and Gains regime, or FIG.