What happens to your bank accounts, tax refunds and pension when you leave the UK on a UK visa?

On a British payslip, ‘Income Tax’, ‘National Insurance’ and ‘pension’ each occupy a separate line. Bank statements show the salary deposits, whilst the annual pension statement lists contributions and account details separately. Before leaving the UK, these documents can be placed in the same folder.

This article is aimed at those who are finishing their work in the UK and preparing to move abroad; there is no need to follow these steps for short trips.

Please keep the account open for the time being until the final payment has been received.

One approach is to transfer the remaining balance out and close the account before departure; another is to reconcile outstanding receivables and payables first, and then determine the date for closing the account. I favour the latter approach, provided the bank allows you to retain the account after moving to your destination. In practical terms, you should first clarify any restrictions on overseas residency, update your current address and tax residency details, download your account statements, and then list any outstanding salary payments, tenancy deposits, utility refunds, as well as any bills still due. Before changing your mobile number, you should also confirm the methods for logging in and verifying your identity from abroad, and ensure there are sufficient funds in your account to cover any pending direct debits. If the bank requires you to close the account, first confirm alternative payment arrangements with the payers and proceed in accordance with the timeframe provided by the bank.

The closing date can be determined by whether the payment is settled, and does not need to be tied to the flight date.

The HMRC departure tax notice states: refund checks are only sent to UK addresses, and can be sent to the individual or a designated recipient, most of which need to be deposited into the individual's or recipient's UK account. The P85 guidance also notes that HMRC does not bear the costs of currency conversion or transferring refunds overseas, and suggests considering keeping a UK account and handling the refund once received.

The delivery address, recipient's name, and the account that can be credited should be determined together when applying.

Select the form first for tax refund, and check the deduction separately.

Those who usually pay taxes through PAYE (pay-as-you-earn tax deduction) and do not need to submit an annual self-assessment tax return typically have their tax affairs handled by P85 when leaving the UK. When leaving the job, obtain a P45 from the employer and provide it as required; if you don't have this document, explain the reason. The amount refunded depends on actual income and tax liability; leaving the country will not result in a full refund of previously paid income tax.

There is an operational detail on page P85: those who have not yet left the country need to print and mail, while those who have left can apply online.

Those required to complete a Self-Assessment return typically declare their departure via their annual return and the SA109 Residence Schedule, without completing a separate P85 form. HMRC’s own online tax filing service does not support the use of this schedule to declare departure; you may opt to use commercial software that supports it, or submit a paper return by post. Individuals who remain employed by a UK employer and are working full-time overseas for at least one full tax year should also check whether they are required to submit a P85 at the same time. Those who continue to receive income from sources in the UK, such as rental income, whilst abroad may also remain liable to file a UK tax return.

A refund of income tax is only granted if you have overpaid; National Insurance (NI) contributions cannot be refunded simply because you are leaving the UK permanently.

Pension contributions are first placed in a pension account; there is no need to transfer them when you move house

Including your pension on the list of ‘everything to be withdrawn before departure’ can lead to an overestimation of the funds available for the move. Leaving the country does not in itself constitute grounds for early withdrawal of occupational or private pensions. The official public financial advice service, MoneyHelper, outlines two options in its guidance on pensions abroad: continuing to manage the pension in the UK, or assessing the possibility of transferring it to an overseas pension scheme. If you choose to retain your existing scheme, you should notify the administrator of your move, update your contact details and keep a record of your membership number and annual statements; once you meet the relevant eligibility criteria in future, you can claim your pension under the scheme whilst living abroad. Occupational pensions and the State Pension, which is calculated based on National Insurance (NI) records, each have their own eligibility criteria, so you should retain records of both.

Before proceeding with a cross-border transfer, it is advisable to obtain a written explanation of the costs, tax implications and changes to existing entitlements before deciding whether to sign the transfer documents.

My view is that ordinary individuals returning to China after leaving their jobs, who have not yet met the eligibility criteria for a pension, need not regard the transfer of their pension as part of the process of leaving the country. It is more practical to compile the scheme administrators, membership numbers, eligibility criteria and overseas contact details for each scheme into a single record than to rush to transfer the funds before departure. When it comes to claiming your pension in the future, you can then verify the tax treatment in both the UK and your country of residence; if a transfer is indeed necessary, you should first seek professional advice from a regulated pension adviser.

Leave enough time for closing the account, and keep a complete record of the pension. These payments after leaving the UK will then have a place to go.

[Data Source] HMRC "Exit Tax Guide" "P85 Application Guide"; MoneyHelper "Handling of Pension Schemes When Relocating Abroad". Verification Date: October 12, 2026. This article is for reference only; please consult a licensed lawyer for specific issues.

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