lavender1365

Hi
I am a US citizen and also EU passport holder (Polish). My husband was born and raised in UK in Scotland and we have been married and lived in USA for the past 30 years. We are planning on retiring in about 3-5 years in UK closer to our families, namely in Scotland, Edinburgh. I would be in my mid 50's my husband 60 when we would move to UK. We would have no intention to work in UK.
I will have a pension that will be approximately 78K to 91K british pounds annually. In addition we will have my husband's 401K which, depending on economy, can be close to a $1M or less. We will also have eventually Social Security. I am also entitled to life long health benefits from my company which may mean I might be able to get a bit of cash to be bale to procure private health care on top of NSF (I believe we would qualify because my husband is UK citizen). We would be selling our house in California and buying a house for cash in Edinburgh at that time so no mortgage.
Here are my questions:
1) Is this enough to have fairly comfortable living in Scotland: provide for food, car, travel, healthcare, etc...
2) Would it make more sense to file taxes as US citizens?
3) What are tax implications for us if we were to keep bank account in US?
4) Any barriers in purchasing a house in UK for us?
5) Any issues with my applying for stay in UK? Should I do that earlier, as EU passport holder? or as US passport holder?
6)How do I find out about private health insurance and premiums?
Thank you kindly for all your help!

BritInParis

1) Easily.

2) It's a legal requirement unless you renounce your US citizenship.

3) You still need to file a tax return with the IRS as a US citizen and as a UK resident you would need to declare your worldwide income to HMRC so keeping a US bank account is unlikely to make much difference.

4) No more or less than anyone else.

5) As an EU citizen you are free to move to and live in the UK without a visa. As such you should always use your Polish passport when entering and leaving the UK. With Brexit on the horizon however it would be advisable to apply for confirmation of your status with a EU residence card. After five years, under the current rules, you will become a permanent resident and eligible to naturalise as a British citizen which I would advise if your intention is to remain in the UK permanently. Since you won't be working in order to qualify for residence you will need to demonstrate you are self-sufficient. This means you will need Comprehensive Sickness Insurance until you become a permanent resident/British citizen. Once you become a permanent resident/British citizen then you would be entitled to free NHS care in the same way as other British residents. CSI is not defined within the law but the relevant Home Office guidance states "If you have private medical insurance, you should enclose a schedule or other document from the insurance provider outlining the level of cover – this must cover you (and your family members in the UK, if applicable) for the majority of risks while you’re in the UK".

6) That I don't know. The largest private health provider in the UK is Bupa. Perhaps start there.

Pulaski

4) If you need any sort of mortgage, your age might be a problem. I hear that the attitude is changing, but until quite recently banks would only lend on the basis that a mortgage be paid off before you retire.

lavender1365

Thank you kindly for your response. We would outright purchase house in UK, no need for mortgage at that time. I do not know how that would work for us however with selling our house in US and then writing a big fat check for a house in UK. We expect paying taxes on sale in US, no problem. I am not sure what that means to pay for the house in UK...do we get taxed by "bringing" money to UK,what is the best way to proceed with such transaction.
Also, how one establishes banking relationship in UK. I have heard this is a bit of an issue if you do not work and we do not intend on working.

lavender1365

Thank you very much for your response, this is very helpful...So I assume if we were to move with my husband, a UK citizen, I would not be automatically eligible to NHS in case of emergency? Again, please understand, we both plan on procuring on private insurance on top of NHS but I am completely clueless how this works and will need to do some research. This is why I am giving us adequate time to prepare... Question: Can one obtain private insurance immediately? Your answer indicates that one would have to have private insurance for about 5 years before becoming resident. Is this correct? Again, not an issue as we would like to have one indefinitely and we will be able to afford one. How different is private from NHS? or is it on top of NHS services? We are both healthy but you do want to have access in case something happened or you got ill. Also, we are used to preventive care so not sure how this works with either NHS or private... Nay help answering would be greatly appreciated! Again, many thanks for taking your time to answer my questions.

Pulaski

I don't know where you "heard" that, because you certainly don't need a job to open a bank account. Getting a credit card immediately might not be so easy. .... You might consider opening an account ahead of moving with Lloyds bank in the Isle of Man - they are a "regular British bank", but serve an international clientele.

You can wire money to your account in the UK, or the Isle of Man, or use an on-line FX remitter-broker. When you buy a house you might be asked for a bank draft/ cashiers cheque, or make a direct transfer of the funds - you can ask your solicitor prior to closing, but it isn't a big deal. You should tell the estate agent (remember that there is only one agent in each transaction in the UK, no buyer's agent), that you are a cash buyer, and might be asked to show "proof of funds" - that you have the money.

There are no tax implications for transfering money that you already own.

robin1234

No, being retired is not a problem for opening a British bank account. But you do need to demonstrate that you are British residents (British driving license, utility bills addressed to your British address, that type of thing.)

If you want a Brotish bank account while still resident in the U.S., you can get a sterling current account at an Isle of Man bank such as Lloyds Bank.

lavender1365

thanks so much, this is excellent! Very useful information. I appreciate your time to write response and help me understand.

lavender1365

Thank you kindly, this is very helpfull. My husband is a UK citizen hence we might be able to open an account when we move but before hand we might do as you suggest and open with Lloyds.
Many thanks for your help!

Pulaski

You're welcome.

BritInParis

You would be eligible for free NHS primary care such as visiting A&E (ER) and seeing a GP (family doctor) as this is available to everyone regardless of their immigration status but you would likely need to use your private health insurance to cover you for any secondary care such as hospitalisation if the need arises. Moreover without CSI you wouldn't qualify for permanent residence after five years. That your husband is a British citizen has no effect on your status as you would be in the UK exercising your Treaty rights as a EU citizen. As a resident British citizen your husband will have access to the full range of NHS care free of charge.

As far as I know you can apply for private health insurance as soon as you arrive. You'll want to arrange it within three months of arrival in the UK as this is the grace period before you need to start exercising your Treaty Rights as a EU citizen (in your case this would be self-sufficiency) and therefore enable you to apply for an EU residence card and start the clock to ticking towards your PR status in five years time.

Richard8655

Great plans you have, similar to spouse and myself. I'm just curious about a couple things.

You mention that you have life long health benefits from your company in the US. I assume that continues as medical coverage into retirement as well? If so, wouldn't that insurance be applicable overseas such as in UK, and couldn't you use that until you become eligible for NHS coverage? My US government agency retiree coverage works in any country worldwide, although we'd signup immediately with the NHS.

My other thought is that as you and your husband approach receiving social security benefits, you probably both should enroll in Medicare at 65 no matter where you live. Although Medicare coverage is only available in the US, you never know if you'll need it in the future. As you probably know, Part A (hospitalization) is free, so both of you I'd think should enroll at 65. Part B (doctor visits) has a monthly premium, and if you don't enroll when eligible, there's an annual penalty. Often, US companies that provide retiree medical coverage require enrolling in Medicare at 65 and then convert the retiree coverage to a Medigap policy. In our case, we plan on just enrolling in Part A (our retiree medical covers doctor visits).

Anyway, just some additional thoughts on medical planning.

Editha

With medical insurance, I'd be careful and maybe use a broker who understands your needs. Most UK medical policies are designed as supplementary to the NHS, not for people ineligible for NHS care.

lavender1365

Richard8655, these are all great comments! yes, i have lifelong retiree benefit for both myself and my husband. We are lucky that way. However that might mean i might be able to actually get the premium converted to cash for which I might be able to purchase private insurance in UK for us, or at least pay for part of it. i guess I would hate to be dealing with US insurance and form filing and trying to figure out which doctors are under PPO while living in Scotland. But i will consider keeping US insurance if this makes sense. We still have few years to figure it all out. As far as Medicare...yes, this makes sense and we intend to do the same as you. Kind regards.

lavender1365

Thank you, Edith. My husband as UK citizen will be eligible for NHS. I assume at some point I will too. Not sure when. However, we do not want to drain the system and would like to pay for our own since we have resources and I do have life long benefits from US for me and my husband. I just need to figure out how to structure it all.