Financial Considerations When Moving from the UK to Ireland

Moving from the UK to Ireland may seem relatively straightforward given the close cultural and economic ties between the two countries. However, there are several important financial issues to address before making the move. These issues can affect your tax status, investment access, pension planning, and more. Below is a breakdown of the key areas to consider:

Currency Change and Cost of Living Adjustments

Though the euro and pound are both stable currencies, exchange rate volatility can impact:

• Pension or rental income repatriated to Ireland.
• Investment performance and portfolio value.
• Day-to-day living costs and budgeting.

Recommendation: Consider opening a euro-denominated account before moving, and also consider switching investment and pension accounts into Euro if that is the currency you will be reliant on.

Loss of Access to Your UK Financial Advisor

Brexit has affected the ability of many UK-based financial advisors to serve clients living in the EU, including Ireland:

• Many UK advisors no longer have passporting rights to advise clients in the EU.
• This may mean you need to find an Irish-based advisor once you become a resident in Ireland.

This is especially relevant if your current advisor manages your pension or investment portfolio.

Recommendation: Discuss continuity plans with your UK advisor before moving and begin researching Irish-authorised advisors with cross-border expertise.

ISA Accounts and Irish Tax Compliance

One of the most overlooked financial pitfalls for UK residents moving to Ireland involves Individual Savings Accounts (ISAs). While ISAs offer tax-free growth and income in the UK, they are not recognised as tax-free investments in Ireland.

From the Irish Revenue’s perspective:

• Income (including dividends) and gains from ISAs must be reported and will be taxed at standard Irish rates.
• This means that continuing to hold ISAs after becoming an Irish tax resident could result in unexpected tax liabilities.

Recommendation: Speak to an independent financial consultant who is knowledgeable in this area. They will be able to review your situation and recommend actions to take or whether you will need to employ the services of a tax advisor.  It is essential that this is done before you take up Irish residency!

Servicing of UK pensions may be restricted

Your ability to manage or “service” your pension may also be restricted. While many UK pension providers will allow you to retain your pension after moving abroad, they may impose limitations on what you can do with it. For instance, non-resident policyholders are often prohibited from making fund switches, altering investment strategies, or updating drawdown arrangements without being physically present in the UK or using a UK-based advisor, who may no longer be authorised to advise you due to post-Brexit regulatory changes. This can leave your pension effectively “frozen” in its current state, exposing you to investment drift and reducing your ability to adapt your strategy over time.

Recommendation: Check with the administrators of your pension plan to see whether you can service your pension when you become a non-resident. Then speak to an Irish financial advisor about the merits of leaving the pension in the UK or moving it to Ireland – your individual circumstances and future plans will dictate your decision.

Maintaining your UK bank account(s)

Maintaining UK bank accounts after moving to Ireland is important for several practical reasons. It allows for seamless management of any ongoing financial commitments in the UK, such as mortgage payments, pensions, or subscriptions.

Once you become a non-resident, it can be difficult—if not impossible—to open a new UK bank account, making it wise to retain existing accounts for future flexibility.

For individuals benefiting from the remittance basis of taxation in Ireland, maintaining a UK bank account is particularly important. Under this system, foreign income and gains are generally only taxable in Ireland when they are remitted – brought into the country. A UK bank account offers a valuable layer of separation between Irish and non-Irish funds, allowing individuals to receive and hold foreign income without automatically triggering an Irish tax liability. This helps ensure greater control over when and how funds are remitted to Ireland and supports clear record-keeping to demonstrate compliance with Revenue guidelines, reducing the risk of unintentional taxation.

Recommendation: Contact your bank to confirm if you can keep your account while living abroad. If not, consider opening a new account with a bank that permits non-resident accounts.

Dual Taxation Obligations

When you move from the UK to Ireland, any asset or income that has ties to both countries or is located in one but taxed in the other can trigger dual reporting obligations. This often surprises movers who assume one country will “cover it.”

For example, we often see clients who maintain their UK property and rent this out. This will trigger dual reporting obligations.

• You’ll need to file tax returns in the UK for rental income and pay any applicable taxes.
• Ireland may also tax this income depending on your domiciliary and whether the funds are remitted into the state.
• You may claim a foreign tax credit in Ireland to avoid double taxation —but paperwork and timing are crucial.

We also see a lot of individuals holding on to their UK interest bearing deposit accounts as interest rates are currently far higher than they are in Ireland. A point worth noting is that UK interest falls under income tax in Ireland rather than DIRT, which applies to Irish deposit accounts.

Recommendation: Check your obligations in the UK should you maintain assets within the state as a non-resident. Also, seek advice in Ireland on how these will be treated from an Irish point of view. You can make an informed decision as to whether you should keep this asset or not.

Maintaining Your UK National Insurance Record

Your UK National Insurance (NI) contributions affect your eligibility for the UK State Pension:

• You need 10 qualifying years to receive any pension, and 35 years for the full amount.
• Moving to Ireland can create gaps unless you pay voluntary Class 2 or Class 3 contributions.

You could qualify for both Irish and UK pensions should you meet the criteria in each respective country.

Recommendation: Check your NI record on the UK government website and make a plan to fill any shortfalls via voluntary contributions.

UK Inheritance Tax (IHT) and Irish Capital Acquisitions Tax (CAT)

For individuals moving from the UK to Ireland, estate planning becomes significantly more complex due to the potential exposure to two separate inheritance tax regimes: the UK’s Inheritance Tax (IHT) and Ireland’s Capital Acquisitions Tax (CAT). These operate on entirely different principles, and overlapping tax liabilities are common if proactive planning isn’t done.

Once you become a resident in Ireland for tax purposes, your worldwide assets (and gifts/inheritances you receive) become relevant for Irish tax purposes. If you also have UK connections — such as UK assets, a UK domicile, or a history of long-term UK residency — you may find your estate, or any gifts/inheritances exposed to tax in both jurisdictions.

For individuals who are not domiciled in Ireland, there is a 5 consecutive year exemption period during which they are not liable to Irish CAT on foreign gifts and inheritances. 

This means:

• If you become an Irish resident but are non-domiciled, you will only be liable to CAT on worldwide gifts and inheritances after you have been resident in Ireland for 5 consecutive years.
• During these first 5 years, CAT applies only to gifts or inheritances from Irish-domiciled donors or Irish-located assets.

Recommendation: Cross-border estate planning between the UK and Ireland can result in double taxation, conflicting rules, and complex relief claims. If you have significant UK assets or expect to inherit across borders, it’s essential to seek professional tax and legal advice early to structure your estate efficiently, manage domicile exposure, and avoid unintended tax consequences.

Final Thoughts

Relocating to Ireland from the UK involves more than just a change of address. From tax treatment of investments to pension access and professional financial advice, early planning and expert guidance are essential. Ideally, speak to both UK and Irish financial professionals who understand cross-border issues to ensure a smooth financial transition. It is important that this planning happens before you make the move.