Big Four Partner saves £27K in tax with smart global mobility strategy

A senior Partner at Big Four accounting firm relocated from overseas to the UK on a 3-year secondment and sought financial advice around tax-efficient investment strategies while UK-resident.  

The challenges faced  

• Our client was subject to Tapered Annual Allowance limiting pension contributions. 

• Their wife was not working, which presented an opportunity to utilise her UK tax allowances. 

• They had to maintain independence compliance due to Big Four partner status. 

Our solution  

• Pension Contributions: Took advantage of lower UK earnings in the year of arrival (became UK resident 1 Jan) to make large pension contributions and secure 45% income tax relief - saving approximately £27k. 

• Spousal Investment Strategy: Used a General Investment Account in wife’s name to utilise her Personal Allowance, Dividend Allowance, and Capital Gains Allowance. 

• Forward Planning: Structured £10k per year pension contributions for the next 3 years to maximise ongoing tax relief. Utilising wife’s Pension Allowance of £3,600 and ISA allowance of £20,000 whilst in the UK. 

• Cross-Border Coordination: We collaborated with our client’s overseas adviser to align UK strategy with long-term repatriation plans. 

• Compliance: Ensured all advice and investments met their firm’s independence requirements.