If you’re a UK expat living in the Middle East, chances are your income is strong and your savings are growing. But for many, that’s where the planning ends.

Once I look at the average expat’s portfolio, I see the same recurring problems: Good income. Poor structure. Missed opportunities. Unnecessary tax exposure.

Here are five common issues—and what you can do to avoid them.

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1. Holding investments in your own name reduces control and increases tax risk

Many expats continue investing in their own name, unaware of the long-term consequences. It may feel simple, but it lacks flexibility and creates avoidable problems.

The issues:

• Income and gains are taxed as they arise
• No control over the timing of taxable events
• Complex reporting if you return to the UK
• Assets may be subject to full probate on death

What to do instead:

• Use a tax-efficient investment wrapper, such as an international bond or a portfolio solution held via an offshore platform

These can provide:

• Tax deferral while you’re non-resident
• Controlled realisation of gains
• Simplified estate planning with named beneficiaries

This isn’t about aggressive tax planning—it’s about structuring for flexibility and control.

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2. Stuck in GBP when your life isn’t

You might be living in AED or earning in USD—but your portfolio is still entirely in pounds.

That mismatch can quietly erode your real return, especially if your spending and future goals are in other currencies.

What to do instead:

• Use a multi-currency investment platform
• Match your asset currency to your future liabilities—whether that’s international education, retirement abroad, or real estate
• Avoid forced conversions at the wrong time, especially when markets are volatile

Currency planning is often overlooked—but it’s one of the easiest efficiency wins for expats.

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3. Are your UK assets still relevant—or just tax baggage?

Many expats continue holding UK-based assets—funds, shares, cash, or property—simply because it’s what they’ve always done.

But holding these in the wrong way can lead to:

• UK inheritance tax exposure
• UK capital gains tax on property
• Withholding tax on dividends from UK equities
• Administrative problems when settling estates across borders

Property in particular remains popular with UK expats—and in some cases, it’s still a sound asset. The issue isn’t the property. It’s the structure.

What to do instead:

• Reassess whether your UK-based investments still align with your lifestyle abroad
• Consider replacing UK-domiciled funds and shares with globally diversified, tax-efficient alternatives

If you’re keeping UK property:

• For single-property investors, personal ownership may still be appropriate
• For larger portfolios or legacy planning, a corporate structure (e.g. UK limited company or offshore SPV) may offer more flexible ownership, better succession planning and potential IHT advantages

The key is intentional ownership—not default decisions based on familiarity.

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4. No plan for returning to the UK (but probably will)

Many expats eventually return—for family, education, or retirement. But few plan ahead.

From April 2025, the UK is shifting to a residency-based tax system. That means:

• Your worldwide income, gains, and estate may become taxable as soon as you become UK tax resident again
• Offshore structures may lose previous protections
• Gains made while abroad could be taxed if you return within five years (under the UK’s temporary non-residence rules)

What to do instead:

• Use tax-deferred structures that give you flexibility over when and where gains are realised
• Review trusts, company holdings, and other structures for future UK tax exposure
• Avoid triggering UK residency without first reviewing the financial consequences

Planning ahead gives you more options and reduces the risk of unexpected liabilities on return.

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5. No succession or exit planning in place

Most expats haven’t structured their portfolios with succession or exit in mind. That creates risk for your family and delays in settling your estate.

Common issues include:

• Frozen assets across jurisdictions
• Lengthy probate
• Unnecessary IHT exposure
• Unclear or disputed beneficiary arrangements

What to do instead:

• Choose investment platforms that allow named beneficiaries and bypass probate
• Use structures with built-in estate planning features
• Get a proper cross-border estate plan in place before life forces the issue

You don’t need to overcomplicate it—you just need a clear, practical plan.

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Final word

You don’t need to be ultra-wealthy to benefit from better planning. You just need to structure your wealth around your current life—not your past one in the UK.

Most portfolios I review aren’t broken. They’re just inefficient. And inefficiency is fixable.

If you want a second opinion—or a clear plan tailored to your goals and future—I'm here to help.

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