Expats urged to ‘no deal Brexit’ proof their financial planning
29 October 2018
British expats should consider reviewing their personal financial strategies as the UK Chancellor puts an extra £500m aside in the Budget to prepare for a no-deal Brexit.
This is the message from Nigel Green, deVere Group’s founder and CEO, who points out that previously allocated funding for Brexit preparations had been increased in the Budget from £1.5bn to £2bn.
Green says: “The £500 million extra preparation for a no deal effectively makes a no deal a more valid negotiating ploy for the government than it was before, and so risks it happening.
“Before, the EU could legitimately say that May’s threat of walking away with no deal was a bluff. But the increase in this funding announced today demonstrates an increasing willingness to think in terms of a no deal.”
He continued that if the UK left Europe in a no-deal situation, British expats across the world could be hit in two key ways
“First, the pound would inevitably fall further, meaning another big blow for those who receive British pensions or income in pounds as the cost of living would be significantly more expensive in real terms.
“Second, unless there is considerable post-Brexit collaboration between the UK and EU there is a risk that existing payments from British companies, including pension and insurance companies, to those living within the European Economic Area (EEA) could be disrupted or even made impossible. This would be a major inconvenience to many UK expats.”
Green added: “Facing the Brexit uncertainty, especially a no-deal scenario, it would be sensible for British expats to consider reviewing their personal financial strategies. This will help best position them not only to mitigate the risks of a no-deal Brexit, but also enable them to take advantage of potential opportunities that may arise.
“A no-deal Brexit could potentially adversely and seriously impact the finances of millions of expats.
“It would be prudent to ensure their financial planning can withstand a no deal Brexit.”
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