UK tax worries are rising... and for families planning a move to Portugal, the stakes are even higher

A recent industry report from adviser platform business Wealthtime caught my eye. 

It found that tax anxiety is rising sharply among advised UK clients, with 53% saying they are more worried about tax now than they were a year ago.

Nearly half said tax rules and allowances are a major source of uncertainty, and 30% said they are confused about pension rules.

The same research also found widespread “tax year-end regret”, with 74% reporting at least one regret such as leaving decisions too late, missing an allowance, or holding too much cash.

On one level, that is completely understandable. UK taxpayers are dealing with a more complex and less forgiving landscape. Income tax thresholds have been frozen through to April 2031, which means more people are being pulled into higher tax bands over time through fiscal drag. Inheritance tax thresholds have also been extended, and from 6 April 2027 most unused pension funds and death benefits are due to come into scope for inheritance tax.

For a family staying in the UK, that is already enough to create uncertainty.

But for a UK national thinking about moving their life, their family, and possibly their business to Portugal, the position becomes more serious.

Because once you are planning a cross-border move, this is no longer just about “how much tax am I paying this year?” It becomes a question of timing, sequencing, structure, and residency. 

Portugal generally treats you as tax resident if you spend more than 183 days there in a relevant 12-month period, or in some cases if you maintain a home there that is intended to be your habitual residence. That means the date you leave the UK, the date you arrive in Portugal, when you sell assets, when you draw pensions, and how you hold investments can all start to matter far more than many people realise.

This is where many well-intentioned families get caught out.

They often focus on the move itself — schools, property, visas, lifestyle, perhaps even work opportunities — but leave the financial sequencing until later. 

In practice, that can be the expensive bit. A sale, encashment, pension withdrawal, or restructuring that might have been manageable before departure can look very different once Portuguese tax residence begins. Likewise, keeping familiar UK arrangements simply because they are familiar does not automatically mean they remain efficient or appropriate after the move. These are not small technical details; they can materially affect long-term outcomes. This is an inference based on the interaction of UK tax changes and Portugal’s tax-residency rules.

In my view, that is why cross-border planning has become ever so important to my clients and their families.

The real value is not just in “finding a product” or reacting to one issue at a time. It is in helping families step back and look at the full picture before the move and after arrival. Questions such as these become central:

When should we become Portuguese tax resident?

• Should we review pensions before we leave the UK?

• Are our existing UK wrappers still suitable once we are in Portugal?

• Do we need to rethink how future income is taken?

• Should certain sales or disposals happen before or after the move?

• How do we make sure the family’s structure still works if tax rules keep tightening in the UK?

Those are exactly the kinds of questions that deserve proper attention early, not after the fact.

At Atlas Bridge Wealth, this is the work we believe matters most. 

We help UK-connected families think through the move in the right order — not just where they want to live, but how their pensions, investments, business interests, tax position and long-term plans fit together across both jurisdictions. The aim is not to create fear. It is to reduce avoidable mistakes, improve clarity, and help clients move forward with a proper plan.

Because when tax worries are already rising in the UK, the answer is not to carry that uncertainty into a second country.

The answer is to plan the move properly. With care and due diligence.

If you are considering Portugal, or you are already part-way through the process, this is the time to get clear on the sequencing. The earlier the planning starts, the more options you usually have.

Book your free, no obligation DISCOVERY CALL here: https://calendly.com/steve-atlasbridgewealth

This article is for general information only and does not constitute tax, legal or financial advice. Tax treatment depends on individual circumstances and may change in future. Cross-border planning should always be considered in light of both UK and Portuguese rules, with specialist advice taken where appropriate.