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UK University Fee Status: British Overseas Territory

29 July 2024

In the UK, universities and colleges charge different tuition fees based on students’ fee status. Generally, students classified as “Home” students are eligible for lower tuition fees, while those categorised as “Overseas” students are subject to higher fees.

It can be difficult to work out your fee status when living in a British Overseas Territory. There are many categories of eligibility, and each of the four UK nations (England, Scotland, Wales, and Northern Ireland) has its own set of fee status rules.

A main part of the fee status assessment is your ordinary residence. It can be possible for British nationals (or those with no immigration restriction on the length of stay in the UK) and relevant family members living in British Overseas Territory to be eligible for Home status based on where they live. This is the case for those ordinarily resident in specified British Overseas Territories when they are applying to universities in England, Wales and Northern Ireland.

The ‘specified British overseas territories’ are:

  • Anguilla
  • Bermuda
  • British Antarctic Territory
  • British Indian Ocean Territory
  • British Virgin Islands
  • Cayman Islands
  • Falkland Islands
  • Gibraltar
  • Montserrat
  • Pitcairn
  • Henderson
  • Ducie and Oeno Islands
  • South Georgia and the South Sandwich Islands
  • St Helena, Ascension and Tristan da Cunha
  • Turks and Caicos Islands

To be eligible for Home fee status, you must be ordinarily resident in these specified British Overseas Territories and/or the UK for the full three-year period prior to starting your university course in the UK. You must be able to show this residence is not mainly for the purpose of full-time education (relevant for those children in a boarding school where their parents live elsewhere).

The rules when living in a British Overseas Territory

The rules in this category for Home fees include some very specific requirements. They say that, as well as the requirement above, you need to be ordinarily resident in the UK on the first day of the first academic year. This means you need to demonstrate your ordinary residence in the UK on 1st September in the year in which your course starts (if your course start date is anytime between 1st August and 31st December). However, you don’t have to meet this extra requirement if you have a relevant family member (parent, grandparent or spouse) that has no restriction on the length of their stay in the UK (eg British national or Irish citizen).

What about Scotland?

In Scotland, recent rule changes announced in August 2025 mean that British nationals (or those with no immigration restriction on the length of stay in the UK) and relevant family members who live in one of these British Overseas Territories can now be considered for RUK (Rest of UK) fee status. Home status in Scotland only applies to those that have an ordinary residence in Scotland, but the RUK fees in Scotland are set at a level equivalent to Home tuition fees in England. Again, to be eligible you need to be ordinarily resident in these specified British Overseas Territories and/or the UK for the full three-year period prior to starting your university course in Scotland. This is a welcome change to the rules for those interested in applying to Scottish universities and may make it easier to avoid the much higher Overseas tuition fees.

Where can I get further advice on your eligibility for Home fees while living in a British Overseas Territory?

Make sure you understand the rules and check your eligibility for Home fees while living in a British Overseas Territory as early as possible before your university application. It is important to note that there are additional eligibility categories for those living in Gibraltar, including applicants to Scottish universities. UKSO are the leading independent experts in UK University Fee Status for expats. We have been advising schools, families, and students worldwide on this complex topic for 11 years and have helped thousands of expat families with their fee status queries. Get in touch for a personalised Fee Status Appraisal

https://ukstudyoptions.com/wp-content/uploads/2024/07/university-e1755185727270.jpg 600 800 Duncan Bruce https://ukstudyoptions.com/wp-content/uploads/2022/11/ukso-r-logo.png Duncan Bruce2024-07-29 10:06:562025-11-23 09:03:44UK University Fee Status: British Overseas Territory
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Home fee eligibility for those at UK boarding school

8 March 2024

Determining whether your child qualifies for Home fees at a UK university typically depends on several factors, including their residency and immigration status, as well as the specific policies of the university.

In the UK, universities and colleges charge different tuition fees based on students’ fee status. Generally, students classified as “Home” students are eligible for lower tuition fees, while those categorized as “Overseas” students are subject to higher fees.

British citizens and individuals with settled status may be eligible for Home fees, but they must navigate additional criteria, such as the duration of their residency in the UK or their reasons for being absent from the country. International students coming to study in the UK are typically subject to higher tuition fees.

Main Purpose Rule

In the context of fee status for educational purposes, particularly in the UK, the “Main Purpose Rule” typically refers to the primary reason for an individual’s residence in the country and whether it qualifies them for the lower “Home” tuition fees or the higher overseas tuition fees.

The main purpose rule is applied when assessing residence history in relation to a student’s fee status. If a student has been residing in the UK mainly to attend full-time education, this period of ordinary residence may not count towards achieving Home fees. This particularly affects students in boarding schools whose parents reside elsewhere. Universities often assume that a child (under 18) will be living with their parents. If the parents are living in another country, the child’s residence in the UK would likely be deemed mainly for the purpose of attending full-time education (boarding school).

Therefore, it’s important to recognise that a child living in the UK for many years at a boarding school may not have guaranteed Home status if their parents live outside of the UK. Families in this situation will have a more complex case and need to carefully prepare their application for university.

It’s important to note that fee status determination can be complex and may vary between universities. Students are typically required to provide evidence to support their fee status application. This includes residency documents, immigration status, and other relevant information.

Read our article about Ordinary residence to see how it impacts your fee status case.

For a free summary of your fee status case UK Study Options now have a simple, easy to use online tool. Designed as an essential first step, the Fee Status Checker helps families understand their initial eligibility for Home fees and sets the stage for more comprehensive support if needed.

 

https://ukstudyoptions.com/wp-content/uploads/2024/03/vadim-sherbakov-d6ebY-faOO0-unsplash-scaled.jpg 1754 2560 ukstudyoptions https://ukstudyoptions.com/wp-content/uploads/2022/11/ukso-r-logo.png ukstudyoptions2024-03-08 16:15:062025-02-20 11:10:59Home fee eligibility for those at UK boarding school
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Fee Status ‘Ordinary Residence’

6 March 2024

Understanding Ordinary Residence for UK University Fee Status

Navigating the intricacies of fee status regulations for UK universities can be a daunting task, especially for expats living abroad. Among the key terms in these rules, “ordinary residence” stands out as a crucial determinant for fee eligibility. However, its ambiguity often leads to confusion among prospective students.

Because the fee status rules do not provide a definition of ordinary residence, each university will have their own policy and interpretation. This means that different universities can legitimately come to a different outcome when looking at the same case. Universities will often refer to the guidance provided by UKCISA (UK Council for International Student Affairs) when assessing this. UKCISA point to case law and government guidance which is helpful to understand ordinary residence and provide a useful summary on their website.

The Significance

In most cases of Home fee status, applicants must demonstrate ordinary residence in a specific location for a continuous three-year period before commencing their university studies. Despite its importance, the fee status rules offer no clear definition of ordinary residence, adding to the complexity of the process.

University Policies and Interpretations

Since the fee status rules lack a definitive definition, each university sets its own policy and interpretation regarding ordinary residence. This means that different institutions may arrive at varying conclusions when assessing fee eligibility. Many universities refer to guidance provided by UKCISA (UK Council for International Student Affairs), which relies on case law and government directives to offer clarity on ordinary residence.

Eligibility Criteria for Home Fees

It’s essential to note that various categories of Home fees exist, each with distinct eligibility criteria. Depending on your nationality or immigration status, you may qualify for Home fees by demonstrating ordinary residence in a location outside the UK, such as the Republic of Ireland, certain British Overseas Territories, or Europe (EEA or Switzerland until 2027).

What does it Mean?

Legal precedents, such as the case of Shah, provide some clarity on ordinary residence. It is defined as a “regular and habitual mode of life” for a settled purpose, emphasising the lawful nature of the residence. To establish this, universities assess various aspects of an applicant’s life through a Fee Status Questionnaire (FSQ). This includes evidence of a permanent UK address used regularly and habitually, along with a pattern of travel indicating the UK address as the primary residence.

Conclusion

Understanding ordinary residence is crucial for determining fee status eligibility at UK universities. While the concept may seem vague, legal precedents and university policies provide guidance for applicants. By gathering sufficient evidence and meeting the criteria outlined by universities, prospective students can navigate the fee status process with confidence, ensuring fair access to educational opportunities.

UK Study Options are experts in UK University Fee Status who provide personalised advice to expat families helping them to achieve Home fee status. We visit schools all over the world on a regular basis to present seminars for parents – check our events page to see if we are in your region soon.

Fee Status Checker Tool: To make the process of determining eligibility even easier, we’ve introduced our new Fee Status Checker. This online tool allows families to quickly assess whether their child could be eligible for Home fees, providing instant results and relevant resources for further research. By simplifying this crucial first step, we ensure that families can move forward confidently with the university application process. Visit our Fee Status Checker to get started.

https://ukstudyoptions.com/wp-content/uploads/2024/03/scott-webb-1ddol8rgUH8-unsplash-scaled.jpg 1700 2560 ukstudyoptions https://ukstudyoptions.com/wp-content/uploads/2022/11/ukso-r-logo.png ukstudyoptions2024-03-06 11:14:562025-03-26 14:43:32Fee Status ‘Ordinary Residence’
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Some Banks Are Closing The UK Accounts of British Expats

5 March 2024

A guest blog article from our partner TorFX who specialise in currency transfer

Many British expats have had their bank close their UK accounts recently, as the financial sector continues to adjust to post-Brexit Britain. This could be a major headache for anyone receiving a private pension or investment income.

These actions, not limited to banks but also affecting investment accounts, result from the end of the EU passporting system that allowed UK banks to operate in the EU. Expats affected have options like specific expat bank accounts or transferring investments to non-UK institutions.

Some UK private pension and investment funds have policies that restrict payments to accounts within the UK. This creates challenges for expats who may not have access to a UK bank account due to closures or other reasons. Expats facing such issues might need to explore alternative banking solutions that cater to their specific circumstances, such as international or expat-specific bank accounts that can receive UK pension or investment fund payments.

What’s the solution?

So, if you’re now an EU resident and your UK accounts are at risk of closure, you will need to find a new way to access your money. Fortunately, as a TorFX client you can continue to receive payments, before swiftly and seamlessly sending them to your EU account at excellent exchange rates. We pride ourselves on an unrivalled service, offering our clients personalised guidance and expert support. If you want to know more about sending funds overseas, we’re here to help.

 

Image outline what TorFX can offer

A case study on How TorFX has helped expats in this situation:

Challenge

Martin and Emily had been living in Mallorca for ten years and were both full EU residents. Although Emily worked part time, most of their money came from their state and private pensions, as well as payments from an income fund. Everything was running smoothly until the couple received a notification from their UK bank that their account would be closed. While their state pension could be transferred directly to their Spanish account, their private pension and investment income required a UK account. They looked into using one of the newer ‘challenger’ banks. But the couple found that they could only open a British account from within the UK.

Solution

A colleague of Emily’s suggested using TorFX, and the couple got in contact with us. Within minutes they had opened a client account and were discussing their needs with their dedicated Account Manager. TorFX client accounts are based in the UK, meaning they can accept payments by BACS, which is required by many pension and investment companies. Martin and Emily were able to direct their pension and income fund payments straight into their TorFX account. They were then able transfer the funds to their Spanish bank at the tap of a button.

Impact

The couple had understandably been a little anxious about their bank account closure, but TorFX were there to provide guidance and reassurance. Martin and Emily’s new account was up and running within minutes, and they were delighted with the support they received. In addition, they found that their money went much further now that they were using TorFX. We exchanged their Pounds into Euros at a far better rate than their bank had, and we didn’t charge transfer fees. Martin and Emily also received regular market updates from their Account Manager and took advantage of the many services we offer so that they could really get the most out of their currency transfers.

Visit the TorFX website for more information.

At UK Study Options, we offer bespoke university guidance, find out more here.

Image showing that torfx offers 24/7 Currency Transfers

https://ukstudyoptions.com/wp-content/uploads/2024/03/Canary-Wharf.png 1687 2866 ukstudyoptions https://ukstudyoptions.com/wp-content/uploads/2022/11/ukso-r-logo.png ukstudyoptions2024-03-05 11:00:422025-01-21 12:06:48Some Banks Are Closing The UK Accounts of British Expats

Learn More about UK University Fee Status

29 August 2023
Read more
https://ukstudyoptions.com/wp-content/uploads/2019/08/Personal-statement.jpg 533 800 Kate Raison https://ukstudyoptions.com/wp-content/uploads/2022/11/ukso-r-logo.png Kate Raison2023-08-29 10:51:392025-01-02 18:10:02Learn More about UK University Fee Status

UK University Fee Status – The Basics Part 1

29 August 2023

You may never have come across the term ‘fee status’. But your university will give you one and it will make a difference to the tuition fees you pay. 

 

What is fee status? 

Your fee status determines the level of tuition fees you will pay when you go to a university in the UK that is publicly funded. There are two levels of fee status – a lower ‘home’ fee which is set at a capped amount by the government and ‘overseas’ which is often much higher and is not capped. Each university will follow regulations and guidance from the relevant UK government to determine each applicant’s fee status and charge tuition fees accordingly. 

How do I know my fee status?  

This is where it can get complicated. Each of the four UK nations (England, Scotland, Wales and Northern Ireland) have a different set of fee status rules. Therefore, you will need to look at the rules that are relevant to the university you are applying for. If you apply to universities that are in different countries then, under each set of rules, it could be possible that you have a different fee status in say England as opposed to Scotland. You can find the rules for each country on the UKCISA website but the rules are complex and open to interpretation.

This means that for expatriate families, who are often to be considered to be on the borderline between home and overseas, each university may view their case differently. It is common that applicants could be classed as a home fee payer at one university but an overseas fee payer at another university, even in the same UK nation. This reflects the very subjective nature of the assessment that universities are required to undertake. It is however each university that has been given the autonomy to make the final decision on the fee status for those applicants on their courses. 

What are the requirements for home fees?  

It is important to understand that there are many different categories of home fee status and each have different eligibility criteria. A key step is to check the specific requirements that will be applicable to you and your application rather than rely on the experience of friends or family members. For British and Irish expatriate applicants you will generally have to demonstrate how you have an ‘ordinary residence’ in the UK or Ireland for the three-year period prior to starting university. Universities will ask for many details of your life including your home address in the UK, nationality and dual nationalities, travel pattern and parents employment. They will be looking to see that you have a regular and habitual life at your UK home or else otherwise that you have are only temporarily absent from the UK to take up employment abroad.

It is also possible to achieve home fees if you have a ‘relevant family member’ who is a British citizen even if you are not one yourself. If you have Indefinite Leave to Remain or another ‘settled’ status in the UK this could mean you get home fees if you can also meet the ordinary residence requirement. Additionally, temporary rules after Brexit mean that those who can show an ordinary residence in the EEA or Switzerland might also be eligible for home fees status. 

Where can I get help with my fee status case? 

UKCISA, the UK Council for International Student Affairs, provide guidance on how to understand the rules. This is a good place to start your research. We are experts in university fee status and provide personalised advice to expat families helping them to achieve home fee status. This service gives you comprehensive advice and support from the moment you engage our services until your child starts university. This includes support with any university fee status queries during the application cycle.

For a deeper understanding, check out UK University Fee Status: The Basics – Part 2

Fee Status Checker Tool: To make the process of determining eligibility even easier, we’ve introduced our new Fee Status Checker. This online tool allows families to quickly assess whether their child could be eligible for Home fees, providing instant results and relevant resources for further research. By simplifying this crucial first step, we ensure that families can move forward confidently with the university application process. Visit our Fee Status Checker to get started.

https://ukstudyoptions.com/wp-content/uploads/2023/08/josh-appel-NeTPASr-bmQ-unsplash-scaled.jpg 1922 2560 Kate Raison https://ukstudyoptions.com/wp-content/uploads/2022/11/ukso-r-logo.png Kate Raison2023-08-29 10:50:392025-08-17 18:09:30UK University Fee Status – The Basics Part 1

UK University Fee Status Myths and Assumptions

21 August 2023

Common myths and assumptions made by expats. 

Myth: A British passport will get my son/daughter home fees at a UK university. 

Not quite. British citizenship is just one factor that make you eligible. Alone it is not enough to meet the full eligibility criteria, there are other criteria you need to meet additionally to this. Actually, you might not have a British passport but you might still be eligible for home fees. There is provision for people with other UK immigration statuses, such as Irish passports holders, EU passports holders with EUSS pre-settled or settled status, ‘Leave to Remain’ or ‘Permanent Right of Abode’, that may be eligible (providing they meet the full criteria). Essentially, your passport alone doesn’t tell you much about whether you are eligible for home fees so more understanding of the full criteria is needed.  

Myth: We’ll have to live in the UK for three years to get home fees. 

Not necessarily. If you do live in the UK three years before UK university (and you meet the rest of the criteria), then you will qualify for home fees. However, it is not the case that if you don’t live in the UK, you won’t get home fees. Luckily for expat families living outside the UK, the legislation isn’t quite as explicit as this. What you need to do is maintain an ‘Ordinary Residence’ in the UK for three years prior to the start of university. This is not the same as living in the UK – see our blog ‘What Does ‘Ordinary Residence’ Mean For Expat Families (for fee status)’ to learn more about this term. Therefore, it is possible to live outside the UK and still achieve home status at a UK university.  

Myth: We don’t have to think about fee status until the university application.  

By then, it might be too late. Fee status assessments used to decide if you are eligible for home fees typically look at the three-year period before university. By the time the university application comes around, much of this three-year period has passed and therefore you are less able to build a strong case for meeting the eligibility criteria. You should be planning for fee status 3-4 years before the start of university so that you can adapt your living/working/travel plans to make sure you have a good case for home fees by the time you are fee assessed (during university admissions).  

Assumption: People we know got home fees, so we will too. 

Fee status is highly personalised and everyone’s fee status case is unique as it is dependent on many factors such as citizenship, immigration status, residence history, travel pattern, employment terms, employment history, the university shortlist, the course applying to…the list goes on! It’s unlikely that anyone you know will have a similar fee status case to you and therefore, their chances of getting home fees will be different to yours. It’s recommended to get personal advice on your fee status eligibility as what supported another person’s case for home fees may not support your case.  

Assumption: Owning property in the UK will get my son/daughter home fees. 

More important than owning a property is the status of that property and how it is used. If the property you own is rented out to a tenant then it’s unlikely that it will support your fee status case. Rather than talk about properties, we talk about the ‘home’. There is an expectation that you have a home in the UK to claim that you are maintaining an Ordinary Residence. This may not necessarily be a property that you own, for example, it could be a rented property, but it should be somewhere that you use as a home when you are in the UK. Everyone’s circumstances are different so what might be a home in the UK for one family might look different to another’s.  

 Assumption: Moving my child to a boarding school will get him/her home fees.

This may not be the case, even if your child has been going to boarding school and living in the UK for more than three years. The fee status rules include the ‘main purpose test’ which excludes any residence in the UK where the main purpose was to receive full-time education. If your child is at boarding school but you, the parents, live outside of the UK then universities are likely to apply the main purpose test and take the view that, if not at boarding school, your child will be resident with you. This means that they will not be able to give Home fee status on that basis and you will have a more complicated case to argue your eligibility. 

UK Study Options are experts in UK University Fee Status who provide personalised advice to expat families helping them to achieve Home fee status. We visit schools all over the world on a regular basis to present seminars for parents – check our events page to see if we are in your region soon. Complete our  online form to receive a free appraisal of your case and see if you need expert guidance for your application. 

 

 

 

 

 

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Are you now eligible for Home fees in Scotland? 

7 August 2023

Recently there has been a significant change to the Home Fees rules in Scotland, meaning that more people could be eligible for Home fees.  

The Scottish government has introduced a new, amended regulation that came into effect on August 1st 2023. The regulation sees a change to the category ‘Relevant connection to Scotland’ and will also see the ‘Long residency’ category being removed after a recent court case. You can read more in this UKCISA article. 

A new Home fees category has been established for individuals who do not possess “settled status” but maintain valid leave to enter or remain in the UK that has not yet expired. From now on, you don’t have to go through the hassle of proving that you’ve lived in the UK for half of your life to get Home tuition fees and financial aid for your studies.  If you are starting your course this year or in following years, check the new eligibility requirements to see if you are now classified as a Home student. 

And the good news is that even if you’re entering your second or third year, the changes to mean that any future fees you need to pay can be on the basis whether you would have fit into this category when you started your course. UKCISA explain that this has been confirmed by the Scottish Government. It is expected that many students may be able to change their fee status and pay less tuition fees for the remaining years of their course. If you believe that you could be eligible you should ask your university to reassess your fees based on the new rules.  

Each nation in the UK has different fee status rules, so you may be eligible for Home fees in Scotland, but not in England. We understand that changes to Home Fees rules may be confusing. UKSO are leading experts in UK University Fee Status. We have been advising schools, families and students around the world on this complex topic for 10 years and have helped over 1,000 expat families with their fee status queries.

Fee Status Checker Tool: To make the process of determining eligibility even easier, we’ve introduced our new Fee Status Checker. This online tool allows families to quickly assess whether their child could be eligible for Home fees, providing instant results and relevant resources for further research. By simplifying this crucial first step, we ensure that families can move forward confidently with the university application process. Visit our Fee Status Checker to get started.

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Tax Planning When Your Child Starts University in the UK

7 August 2023

UK Study Options is proud to partner with Spice Taxation Ltd to make UK taxation services available to our clients. We have asked Martin Rimmer, Managing Director of Spice Taxation, to write a series of articles on the UK tax implications of various scenarios.


In this first article, Martin explores some of the main tax planning issues and opportunities arising when parents, who remain expatriates, send their child to university in the UK.
 

Scenario 1 : Child only relocating to the UK 

The Case Study 

Paul and Lisa Manning are British and they live and work in Dubai with their two children, Amy and Alice. Amy (18) is shortly to begin a four year Undergraduate Degree in Neuroscience at Exeter University. Paul and Lisa have been abroad for over 10 years, are non-resident for UK tax purposes and have immediate no plans to relocate to the UK. They own a rented property in the UK which used to be their main home and they hold a portfolio of investments and pensions outside of the UK. Amy is looking forward to her first taste of independence and will be moving to the UK alone, living in halls for the first year. 

The Impact on Paul and Lisa 

From Paul and Lisa’s perspective, nothing changes. They continue to ‘test positive’ for non-resident status under the Statutory Residence Test – remaining liable to UK tax only on: 

  • Incomes arising from the UK (rental income, interest from bank deposits, dividends from UK companies and unit trusts etc 
  • Gains from the sale or gift of interests in UK land and property 
  • Professional earnings relating to duties performed in the UK which are not ‘merely incidental’ to those performed abroad 

Paul and Lisa file tax returns to report their UK incomes and their movements to and from the UK. They also pay Class 2 Voluntary National Insurance Contributions. 

When Amy moves to the UK nothing about Paul and Lisa’s tax position changes. They may spend a little extra time in the UK but, as Amy is aged 18, her becoming resident in the UK shouldn’t affect Paul and Lisa’s position at all, provided that they remain non-resident themselves. 

That said, Paul and Lisa probably need UK tax planning advice more generally in respect of their UK assets, the many planning opportunities for tax planning which exist for them whilst non-resident and ahead of an eventual relocation to the UK and in the area of Inheritance Tax in the UK, to which their global estate remains exposed even whilst living in Dubai. 

Amy’s Tax Position

However, Amy does become resident because of the amount of time she spends in the UK and because she has a home in the UK (the halls she will live in). The fact that her parents pay her costs in the UK does not create any kind of tax charge or reporting obligation on any of Paul, Lisa or Amy. The fact that the funding comes into the UK from Dubai does not create a charge to tax either in this case. 

Tax and Succession Planning Opportunities for Amy 

Paul and Lisa are keen for Amy to begin to acquire some investment and financial management skills. As a resident of the UK, Amy is entitled to invest up to GBP 20,000 per year into an Individual Savings Account – a type of investment account that generates income and gains which are completely exempt from Income and Capital Gains Tax. Amy can also contribute to a UK pension whilst she is resident, even whilst being a student. Although Amy can’t access the pension until she is 57 years old, Paul and Lisa want to encourage Amy to see the value of saving for retirement.

So, in addition to investing in an ISA for their daughter, they contribute GBP 2,880 per year (the maximum) to a pension scheme for Amy. HM Revenue & Customs adds GBP 720 (25%) to this on a tax-free basis, bringing the total investment to GBP 3,600. Paul and Lisa work with Amy to choose the investments for her pension and ISA. Amy is responsible for meeting with a financial adviser from time to time to monitor performance and generally get familiar with investing. 

In year 2, Amy has to move out of halls. Recognising that this presents a good opportunity to start to pass some of their own wealth on to Amy as well as to instil some further financial management values, all three agree that Paul and Lisa will put down the deposit on a 2 bedroom property in Exeter, and that Paul and Lisa will also act as guarantor on an interest-only mortgage.

After some thought, they decide to purchase the property in Amy’s sole name but the deposit is rendered as a non interest-bearing loan repayable by Amy, with Paul and Lisa retaining a charge over the property for this amount. The reason for this is that a highly-indebted asset is less likely to be subject to a relationship squabble later between Amy and a future partner, especially where Mum and Dad (as well as the bank) have a legal charge against it. 

Amy agrees to take responsibility for renting out the second bedroom, contracting with the tenant (a fellow student), collecting the rent, insuring the place, paying the bills and the mortgage and for providing a monthly account to Paul and Lisa on the financials. Paul and Lisa agree that they will match any profit, which will then be diverted into Amy’s ISA and pension. Paul and Lisa continue to cover Amy’s tuition fees and living costs. 

Amy can receive up to GBP 7,500 of rental income from the letting of the second bedroom in her main home completely free of tax, in addition to her Income Tax allowance of GBP 12,570. Although no Income Tax is due, a calculation of the profit from the rental is still worth doing each year. The property is her ‘Principal Private Residence’ for Capital Gains Tax purposes, which provides valuable tax relief if she decides to sell the property later. Amy also makes a will, dividing her possessions evenly between her parents and younger sister. This is because she is a responsible adult with assets and financial responsibilities.

 

Martin Rimmer is head of Spice Taxation, an independent Singapore-based UK tax consultancy which focuses upon the needs of British Expatriates around the world and those who move to the UK or have financial interests in the UK. Spice Taxation offers a free exploratory consultation to all clients of UK Study Options, for which we are very grateful. In addition, Spice Taxation has generously granted a discount of 20% on Tax Advisory services to clients and contacts of UK Study Options.

If you wish to avail yourself of this, please quote discount code UKSO23.

Visit: www.spicetaxation.com or contact Martin directly at martin@spicetaxation.com for more information. 

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Will I get Home fee status after Brexit? The rules explained for expats in Europe.

13 April 2023

Brexit seems a long time ago but its effects will still impact the way universities assess tuition fee status for a number of years to come and this will affect British and Irish expats living in Europe.

The rules for British and Irish expats living in Europe are complicated. The current rules in place are also only temporary and are different in each UK nation so their impact on expats is about to get even more confusing. As an expat, whether you are eligible for Home fees at a UK university is highly dependent on your personal circumstances such as where you have been living, for how long and for what purpose, and where in the UK to are applying to university, among many others things. It is crucial that you get personal advice on your circumstances if your family is living in Europe or you are advising such students applying to UK universities.

Brexit Withdrawal Agreement

Under the fee status rules, British and Irish expats living in Europe currently have protection under the Brexit Withdrawal Agreement. In England this is in the form of a category of Home fee status called ‘Brexit temporary offer for courses starting before 2028: UK nationals and family with residence in Europe or overseas territories’. Expats are eligible if they were living (‘ordinary resident’) in the EEA or Switzerland on 31st December 2020 and have maintained their ordinary residence there or in the UK since then. As the name suggests, this is a temporary category that will end after 2027, at which point expats will no longer have this protection and will need advice on whether they are still able to be Home fee-payers.

Crucially, if you have moved to the EEA or Switzerland from 2021 onwards, you are not eligible for Home fee status under this category. This is because you’ve moved to Europe post-Brexit and are not covered by the Withdrawal Agreement.

The rules are even more complex when applying to universities in Scotland as it is necessary to show your ordinary residence in Scotland for the three years immediately prior to living in Europe (as well as the requirements above) to get Scottish Home fees (£1,820 per year). Confusingly, Scotland have another rate of fees called RUK (Rest of UK) which is at a level equivalent to Home fees in England (£9,535). It is separately possible for British citizens resident in Europe to qualify for RUK fees in Scotland without living in the UK before moving to Europe. However, for RUK fees there is often an additional requirement for students to have moved an established an ordinary residence in Scotland by 1st August in the year they commence their course. Additionally, they must be able to show they are not moving to Scotland just for the purpose of starting their university course – a requirement that could be problematic for many.

What to expect

If you do live in Europe or anywhere else outside of the UK you can expect universities to question your eligibility for Home fees when you apply. They will ask for information and supporting evidence by sending you a fee status questionnaire (FSQ) to understand your circumstances and see if your meet the requirements for Home fees. You must gather and maintain relevant evidence of where you live and the date of your move, as you may be required to provide this information. You may need to show different evidence depending on which UK nation your university choices are located.

Make sure you understand the rules and check your eligibility for Home fees as early as you can before the university application. If you will be starting your university course after 2027 or you moved to Europe in 2021 or later your case will be much more complex and it may be harder for you to get Home status. UKSO are the leading experts in UK University Fee Status. We have been advising schools, families and students around the world on this complex topic for 11 years and have helped over 1,000 expat families with their fee status queries.

Fee Status Checker Tool: To make the process of determining eligibility even easier, we’ve introduced our new Fee Status Checker. This online tool allows families to quickly assess whether their child could be eligible for Home fees, providing instant results and relevant resources for further research. By simplifying this crucial first step, we ensure that families can move forward confidently with the university application process. Visit our Fee Status Checker to get started.

https://ukstudyoptions.com/wp-content/uploads/2023/04/Brexit.jpg 600 800 Kate Raison https://ukstudyoptions.com/wp-content/uploads/2022/11/ukso-r-logo.png Kate Raison2023-04-13 13:06:172026-03-06 10:56:55Will I get Home fee status after Brexit? The rules explained for expats in Europe.
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UKSO Blog

  • UK University Fee Status – The Basics Part 129 August 2023 - 10:50 am
  • UK University Fee Status Myths and Assumptions21 August 2023 - 3:23 pm
  • Are you now eligible for Home fees in Scotland? 7 August 2023 - 2:31 pm

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