Guiding Your Financial Success Across the UK and Israel | Trusted Financial Advisor | Wealth Management Expert | Dual-Licensed in the UK & Israel
May 15, 2024
Moving capital across borders has become a common practice. As a private wealth and financial advisor dual-licensed in the United Kingdom and Israel, I assist various clients. These include British citizens relocating to Israel and British olim needing financial guidance to navigate their transnational ties.
The Challenge of Cross-Border Financial Complexity
Cross-border financial planning isn’t just about managing assets in two different locales; it integrates two separate financial, regulatory, and tax systems into a cohesive strategy to maximise wealth and minimise tax burdens. The complexity multiplies when different national rules on taxation, inheritance, investments, and pensions interact. This is where the value of a dual-licensed financial, working with leading firms in both countries, is beneficial.
Navigating Dual Taxation
Among the challenges is dealing with two different tax regimes. Both the UK and Israel have tax systems with different deadlines, exemptions, and treaties. Where relevant, I make sure my clients leverage the Double Taxation Agreement (DTA) between these countries, optimising tax efficiency.
A Case Study in Managing Double Taxation
A recent example involved a client who had accumulated generous final salary pension benefits in the UK, before making Aliyah. By transferring the benefits into a personal pension, the client then drew 100% of the fund value out of the scheme, with no tax liability in either the UK or Israel. This capital was then free of the restrictions of the British pension regime and available to invest in a portfolio with an asset allocation and currency strategy far more suitable for an investor living in Israel.
Optimising Investment and Currency Strategies
Cross-border investment diversification extends beyond sectors to geographical boundaries, requiring a deep understanding of both regions’ economic conditions and market trends. Currency fluctuation between the pound sterling and the Israeli shekel or US Dollar can significantly impact returns. Through methods such as currency hedging strategies, I help clients safeguard against unfavourable currency shifts, reducing the risks in their international portfolios.
Estate and Retirement Planning Across Borders
Tailoring estate and retirement plans to fit the legal and tax frameworks of both countries is crucial. We utilise wrappers like SIPPS and personal plans in the UK’s and Israel’s Keren Hishtalmut to ensure savings are optimally taxed and invested. Decisions on retirement locales and governing laws can significantly affect inheritance plans.
A Personalised Approach
Each client’s situation is unique, particularly when the financial systems of two different countries are involved. I craft bespoke financial plans aligned with personal circumstances, future goals, and cross-border complexities. This personalised approach ensures that clients comply with legal and tax obligations and achieve their financial aspirations without undue stress.
Final Thoughts
The demand for cross-border financial guidance is only growing. Navigating the UK’s and Israel’s financial landscapes requires a specialised approach that understands the laws and economic environments of both countries.
I am committed to ensuring that my clients’ financial transitions between the UK and Israel are as seamless and straightforward as possible.
For those navigating the complexities of cross-border financial planning between the UK and Israel or seeking a more in-depth understanding of this service, I invite you to contact me to discuss your specific needs and goals.
The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.