Expat Tax and Financial Reporting
International wealth management firm Chase Buchanan has recently been advising expats to review their tax and financial reporting obligations, as cross-border data sharing and digital border controls become increasingly complex.
The firm highlights the recent rollout of the European Union’s Entry/Exit System (EES), which became fully operational across the Schengen Area in April 2026. Although the EES does not collect financial information such as assets or income, it does create a biometric record of when non-EU visitors enter and leave the Schengen Area, replacing passport stamping. These records may support — or potentially contradict — the tax residency status declared by travellers.
The aim of the EES is therefore to increase cross-border transparency. It complements existing international reporting frameworks, including the Common Reporting Standard (CRS) and the US Foreign Account Tax Compliance Act (FATCA). While the CRS enables tax authorities to exchange information about financial accounts held by non-residents, FATCA requires US taxpayers with qualifying overseas assets to report them and also obliges foreign financial institutions to provide information on US account holders.
Together, these systems give tax authorities greater visibility over both financial assets and an individual’s physical presence in different jurisdictions. For expats and internationally mobile professionals, this increases the importance of maintaining accurate travel records and, crucially, ensuring tax declarations are consistent with residency status.
Lee Eldridge, Group CEO and Head of Investment Advisory at Chase Buchanan, told the financial press that growing international transparency means expats should not assume that previous residency arrangements or financial structures remain appropriate. He advises anyone uncertain about their tax residency, reporting obligations or overseas asset declarations to seek professional guidance, helping to reduce the risk of tax inefficiencies, penalties — which can run into thousands of dollars for US expats who fall foul of FATCA — and unnecessary compliance issues. He stated:
“It’s never been so vital for expats to maintain accurate records and to ensure that all financial declarations they submit to any tax authority align with their physical residency and movement patterns.
International transparency standards are continuing to evolve, and that means it might be risky to assume that financial arrangements or historical tax residency positions remain static and won’t fall within the scope of reporting obligations.”
A New Prime Minister and Your Pension
Following Keir Starmer’s resignation at the end of June, the UK now has a new Prime Minister, Andy Burnham. A change in leadership raises questions about the future direction of pensions policy.
Burnham has previously pledged to retain the state pension triple lock, which guarantees annual increases based on whichever is highest: inflation, average earnings growth, or a floor of 2.5%. However, growing concerns about the long-term affordability of the policy have intensified debate over whether it can be sustained. State pension spending reached £146.1 billion in the 2025/26 tax year, and official forecasts suggest the triple lock could place increasing pressure on public finances. There have been an increasing number of articles in the UK press depicting pensions as a ‘benefit’, resulting in considerable pushback from retirees.
Alongside political change, the government’s independent Pension Commission is examining the UK’s retirement system. Its interim findings indicate that around 15 million people are not saving enough for retirement, with low-income workers and the self-employed particularly at risk. The commission is widely expected to recommend longer working lives and measures to increase employment among older workers.
Attention is also focused on pension taxation. Having ruled out increases to the main rates of income tax, VAT and National Insurance, a future government may instead consider reforms to pension tax relief or the tax-free pension lump sum as potential sources of additional revenue. Proposals such as a flat-rate system of pension tax relief continue to divide opinion, balancing concerns over fairness, fiscal sustainability and incentives to save.
For retirement savers, the coming months could bring significant policy developments with long-term financial implications. If you’re an expat in receipt of a UK pension, it’s worth keeping an eye on developments.
Grandparents Could Boost Their State Pension Through Childcare Credits
Grandparents who help care for grandchildren during school holidays may be entitled to increase their future UK State Pension through Specified Adult Childcare Credits (SACCs). The scheme allows eligible family members who care for a child under the age of 12 to receive National Insurance (NI) credits that would otherwise be allocated to the child’s parent through Child Benefit.
These credits can help fill gaps in an individual’s NI record, which is particularly important given that 35 qualifying years are generally required to receive the full State Pension. They are especially valuable for people who have spent time outside the workforce, including carers, stay-at-home parents, lower earners, some self-employed individuals and those who have lived abroad.
According to HMRC data, more than 202,000 applications for SACCs were submitted between 2016 and 2025, with almost 80% approved. Awareness of the scheme has increased in recent years, although around one in five applications continues to be rejected, often because applicants already have sufficient NI credits or are themselves receiving Child Benefit.
Claims can be backdated to 6 April 2011, provided the eligibility criteria are met, although applications for a tax year can only be made after 31 October of the following tax year.
For British expat grandparents, however, the position is more nuanced. Individuals who have permanently settled overseas are unlikely to qualify because applicants generally need to be ordinarily resident in the UK to receive Specified Adult Childcare Credits. By contrast, grandparents who have returned to live in the UK after a period abroad may be able to use the credits to fill gaps in their National Insurance record if they regularly provide childcare for grandchildren and meet the eligibility rules. Those who are on temporary overseas assignments or have more complex residence histories may wish to seek professional advice, as entitlement depends on their individual National Insurance and residency circumstances.