How To Decide Which Financial Adviser To Work With

How To Decide Which Financial Adviser To Work With

 

Finding a financial adviser you can trust is essential for securing your financial future. With so many options available, it’s easy to feel overwhelmed. Discuss the following key aspects with any potential adviser to ensure they offer the right level of expertise and protection and align with your financial goals.

1. Qualifications and Professional Standards

When selecting a financial adviser, check their qualifications. In the UK, advisers should hold a Level 4 qualification or higher, which is the industry standard. Many UK pension providers now require all advisers—regardless of location—to meet this level.

Some advisers also hold specialist qualifications or are Chartered by professional bodies such as:

– The Chartered Institute of Securities & Investments (CISI)

– The Chartered Insurance Institute (CII)

Being chartered indicates that an adviser undergoes continuous learning, recording at least 35 hours of Continuing Professional Development (CPD) annually. This ensures they provide the most up-to-date financial advice.

2. Licensing and Regulatory Oversight

Regulation determines the level of client protection you receive. The highest standard in the EU is a full MiFID II licence, which allows advisers to provide comprehensive investment advice and ensures professional indemnity insurance in case of disputes.

Some advisers operate under an Insurance Distribution Directive (IDD) licence, which only permits them to recommend insurance-based financial products. If an adviser is offering broader investment advice without a full MiFID II license, they may be working outside regulatory guidelines.

3. Investment Strategies and Transparency

The type of investments an adviser recommends can indicate their approach to risk and ethics. Ask whether they primarily use:

✔️ Main market funds and ETFs (exchange-traded funds)

⚠️ Structured Notes (often marketed with “guaranteed returns” but carrying hidden risks)

Structured Notes can be risky and may lose value immediately after purchase. While they may yield profits in some cases, alternative investments often offer better returns with lower risk. Some advisers receive high commissions for selling these products, which may not always align with your best interests.

4. Choosing a Financial Adviser Abroad

If you’re considering a financial adviser outside the UK, be extra cautious. Licensing standards vary, and not all countries enforce strict oversight. Check whether the adviser is backed by a reputable regulatory body and offers full disclosure on investment strategies and fees.

Final Thoughts

Choosing a financial adviser is one of the most important financial decisions you’ll make.

Look for:

✅ Recognised qualifications and regulatory compliance
✅ Investment strategies that align with your risk tolerance
✅ Clear fee structures with no hidden commissions

By taking these steps, you can ensure you work with an adviser who prioritises your financial security and long-term success.

Ingenium Financial meets all the criteria outlined above, holding the highest industry qualifications, full regulatory compliance, and a commitment to ethical, client-focused financial advice.

Looking for Chartered Financial Adviser operating under full EU MiFID II licence? Get in touch with us for a free complementary consultation.

 

UK Inheritance Tax for Non-UK Residents: Take Action Now

UK Inheritance Tax for Non-UK Residents: Take Action Now

 

The UK Government’s October 2024 Budget has brought significant changes to UK inheritance tax (IHT) rules for non-UK residents. These adjustments, effective from 6 April 2025, aim to clarify tax obligations for individuals who live abroad. While primarily targeting those who may return to the UK after working overseas, these changes also provide unexpected benefits for British expatriates planning to retire abroad permanently.

Key Changes to UK Inheritance Tax for Non-UK Residents

1. Domicile Replaced by Residence-Based Rules

The most notable change is the shift from domicile-based assessments to a residence-based test for IHT. Under the new rules, a British expat who becomes non-UK resident will still have their estate subject to IHT for a “tail” period of three to ten years, depending on their duration of UK residence. After 10 years of being non-UK resident, their non-UK assets will no longer be subject to IHT.

2. Transitional Rules for Existing Non-UK Residents

Individuals who were already non-UK resident and not UK domiciled as of 30 October 2024 will benefit from transitional provisions. These rules shorten the IHT tail, offering immediate clarity and potential tax advantages for long-term expatriates.

What This Means for British Expats

Historically, individuals born with a UK domicile of origin faced challenges in losing that status. Even decades of living abroad often didn’t suffice if they couldn’t demonstrate a permanent intention to remain in another jurisdiction. This often meant that their global assets remained subject to UK IHT.
The new residence-based system simplifies matters. Expats who spend at least 10 years outside the UK can ensure their non-UK assets are excluded from IHT assessments. This provides certainty for globally mobile individuals who want clear rules about their tax obligations.

Financial Planning Opportunities

The upcoming changes highlight the importance of proactive financial planning. British expats who act now to understand their tax status and plan accordingly could benefit significantly.

Key steps include:
• Reviewing current residence status and the length of time spent abroad.
• Consulting with a qualified financial advisor to align estate planning with the new rules.
• Exploring transitional provisions for individuals already non-UK resident and non-UK domiciled.

Uncertainty for Recent Expats

For those who have been non-UK resident for less than 10 years by 6 April 2025, some uncertainty remains. The transitional rules only apply to individuals who were non-UK domiciled as of 30 October 2024. These individuals should seek expert advice to navigate the interim period and make the most of the available opportunities.

Final Thoughts

The Budget’s changes to UK inheritance tax for non-UK residents present both challenges and opportunities. For British expats, understanding the implications of the new residence-based test is crucial. With the right financial planning, many can reduce or even eliminate their IHT liabilities on non-UK assets and perhaps more importantly move as much of your assets as possible into secure and efficient structures outside of the UK.
Take action now to review your estate plan and ensure you’re fully prepared for the changes coming in April 2025.

Contact Ingenium Financial for a full-range professional support.

 

Want to know more about the recent UK Budget changes? See a range of articles from HMRC here.

How to Pay ZERO Inheritance Tax for British in Portugal

How to Pay ZERO Inheritance Tax for British in Portugal

New UK Inheritance Tax Rules: What They Mean for British Retirees in Portugal

The recent overhaul of the UK’s inheritance tax (IHT) rules brings significant opportunities for British expatriates, especially retirees residing in Portugal. These changes could drastically reduce tax burdens on global assets for those living abroad long-term. Below is a detailed look at how these updates impact inheritance tax for British in Portugal.

Key Changes to UK Inheritance Tax (IHT) Rules

Previously, UK inheritance tax applied to all British nationals with a UK domicile, covering their global wealth, regardless of residence. The newly introduced system shifts from domicile-based taxation to a residency-based approach, which offers considerable relief for long-term expatriates.

  1. Exemption for Long-Term Residents Abroad
    • British nationals residing outside the UK for over 10 years will no longer pay IHT on their foreign assets. See recent article from Deloitte, scroll to Long Term Resident rule replaces domicile  paragraph 2.
    • This rule applies even to individuals who have previously struggled to shed their UK domicile due to the rigid “domicile of origin” rules.
  2. Streamlined Non-Dom Status
    • Acquiring a “domicile of choice” in another country used to involve complicated procedures. The new rules simplify this by aligning taxation with physical residency.

 Inheritance Tax for British in Portugal:

Benefits

Portugal is a top destination for British retirees due to its favourable tax environment and high quality of life. With the updated UK rules:

  • Foreign Assets are Exempt from UK IHT
    Retirees in Portugal with investments, properties, or savings outside the UK are free from UK IHT after residing abroad for 10 years.
  • Simplified Estate Planning
    Retirees can now focus estate planning on Portuguese laws, which levy no inheritance tax for direct family members such as children and spouses. Instead, a Stamp Duty of 10% may apply to other heirs.
  • Increased Financial Freedom
    The changes might encourage British retirees to diversify wealth internationally without worrying about UK tax implications on those assets after death.

Navigating Portuguese Taxation

While the UK tax changes are beneficial, it’s essential to understand Portuguese inheritance tax laws:

  • No Traditional Inheritance Tax
    Portugal exempts direct descendants and spouses from inheritance taxation. Other heirs may face a Stamp Duty, but foreign assets are typically excluded.
  • Residency and Wealth Tax Considerations
    Retirees should ensure they comply with Portuguese residency requirements to fully benefit from local tax laws.

Long-Term Implications

These reforms provide a clearer path for British retirees to secure their financial legacy. However, the 10-year residency requirement poses a key planning consideration. For those contemplating retirement in Portugal, the tax advantages can outweigh the commitment of a decade abroad.

Practical Steps for British Retirees

  1. Establish Residency in Portugal
    Begin the residency process early to start the 10-year clock for foreign asset IHT exemptions.
  2. Optimise Estate Structures
    • Consolidate UK assets or consider transferring wealth away from the UK and optimise their future Portuguese liabilities.
    • Draft a Portuguese will to align estate planning with local laws.
  3. Seek Professional Advice
    Engage tax experts with experience in both UK and Portuguese systems to navigate complexities and ensure compliance.

Inheritance Tax for British in Portugal: Why These Changes Matter

These tax reforms have introduced a once-in-a-generation opportunity for British retirees to restructure their finances. With the favourable residency laws in Portugal and exemptions on foreign assets, retirees can now enjoy peace of mind about their inheritance tax liabilities.

Contact Ingenium Financial, fully qualified to provide pension advice for British expats in Portugal.