Good UK tax advisor for US citizens moving to UK
Jul 20th 2019, 9:15 pm
#1
Just Joined
Thread Starter
Joined: Jul 2003
Posts: 22
Good UK tax advisor for US citizens moving to UK
Hello:My husband and I, both US citizens, plan to move to London. (I am also a British citizen.) We need to find a UK tax advisor who can both: 1) do our US and UK taxes once we reside in London, and 2) advise us on tax-efficient ways to draw income and dispose of UK and US assets in our retirement.We are not wealthy (nor struggling), so we may not appeal to the big US-UK tax specialists catering for “private clients”. On the other hand. we do not want a simple tax preparer. We hope for a personal advisor who is well versed in UK and US tax law, and who has the experience to help us make important life decisions (eg. Where should we live and when, to minimize tax). Any recommendations? And, if so, why do you recommend this firm? Thank you so very much,Sheryl
Jul 21st 2019, 1:22 pm
#2
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Good UK tax advisor for US citizens moving to UK
I can’t recommend a financial advisor but there are some basic things you can do ahead of a move to the UK that we did after a bit of research.
The UK taxes individuals not married couples, no married filing jointly.
our income is very uneven, coming from my US pensions plus dividends and capital gains from savings and investments plus IRA’s.
by removing my name from our joint accounts then that income became UK tax free as it was less than the UK individual tax free band (£12,500 for regular income) on top of that Qualified Dividends from stock funds have a tax free allowance of £2,000 then taxed at 7.5% and the first £12,000 of capital gains is tax free then taxed at 10%.
Roth IRAs are tax free in both countries
It was worth me doing some IRA to Roth conversions, being taxed at the lower US rates.
HMRC Reporting funds get favorable tax treatment for qualified dividends and capital gains
If you have mutual funds in after tax accounts (i.e. outside of IRAs, 401ks etc) then see about converting them to funds that are recognized by HMRC
https://www.gov.uk/government/public...eporting-funds
If you are filing US taxes
Don’t invest in stocks and bonds funds as the IRS will tax them punitively as PFIC’s
ISA’s are tax free to HMRC but not to the IRS, including stocks and shares ISA’s
If you are working in the UK and the company has a pension scheme with employer contributions then don’t do more than match the employer contributions otherwise the pension scheme becomes a foreign grantor trust to the IRS
The UK taxes individuals not married couples, no married filing jointly.
our income is very uneven, coming from my US pensions plus dividends and capital gains from savings and investments plus IRA’s.
by removing my name from our joint accounts then that income became UK tax free as it was less than the UK individual tax free band (£12,500 for regular income) on top of that Qualified Dividends from stock funds have a tax free allowance of £2,000 then taxed at 7.5% and the first £12,000 of capital gains is tax free then taxed at 10%.
Roth IRAs are tax free in both countries
It was worth me doing some IRA to Roth conversions, being taxed at the lower US rates.
HMRC Reporting funds get favorable tax treatment for qualified dividends and capital gains
If you have mutual funds in after tax accounts (i.e. outside of IRAs, 401ks etc) then see about converting them to funds that are recognized by HMRC
https://www.gov.uk/government/public...eporting-funds
If you are filing US taxes
Don’t invest in stocks and bonds funds as the IRS will tax them punitively as PFIC’s
ISA’s are tax free to HMRC but not to the IRS, including stocks and shares ISA’s
If you are working in the UK and the company has a pension scheme with employer contributions then don’t do more than match the employer contributions otherwise the pension scheme becomes a foreign grantor trust to the IRS
Last edited by durham_lad; Jul 21st 2019 at 1:27 pm.
Jul 23rd 2019, 7:05 pm
#3
Just Joined
Joined: Jul 2019
Posts: 5
Re: Good UK tax advisor for US citizens moving to UK
Hello:My husband and I, both US citizens, plan to move to London. (I am also a British citizen.) We need to find a UK tax advisor who can both: 1) do our US and UK taxes once we reside in London, and 2) advise us on tax-efficient ways to draw income and dispose of UK and US assets in our retirement.We are not wealthy (nor struggling), so we may not appeal to the big US-UK tax specialists catering for “private clients”. On the other hand. we do not want a simple tax preparer. We hope for a personal advisor who is well versed in UK and US tax law, and who has the experience to help us make important life decisions (eg. Where should we live and when, to minimize tax). Any recommendations? And, if so, why do you recommend this firm? Thank you so very much,Sheryl
Jul 24th 2019, 12:09 pm
#4
Just Joined
Joined: Jan 2008
Posts: 3
Re: Good UK tax advisor for US citizens moving to UK
Hi Sheryl, We are also in the planning stages of moving back to the UK after 26 years in the USA. I have been doing the same research to find a suitable adviser who can help both sides of the pond. No success yet but I am happy to share if and when we find someone with the expertise. They appear to be few and far between based on results so far. Wishing you all the best with your plans. It is not easy!
1. repatriating savings (in the form of stocks and shares with gains as yet unrealised)
2. US earnings for the part years in which I returned.
3. Position of US tax rebates for my final year, credited after I resettle in UK that might be seen as overseas "income" .
4. tax status of eventual US social security pension income
I was quoted £1000-1500 to fully prepare my self assessment tax return
Since my total savings in the US are around $60,000 including about $15,000 unrealised gains,
I have not yet engaged them for UK side work - I am looking for something cheaper, but I am still in the dark as to my liability , or what should be my strategy.
Jul 27th 2019, 6:03 pm
#5
Just Joined
Thread Starter
Joined: Jul 2003
Posts: 22
Re: Good UK tax advisor for US citizens moving to UK
Thank you so very much Durham Lad, MeganSam and Pentangele,
I really appreciate this and will check these out and look over your advice. MeganSam, if I find someone who seems good I will let you know too. We plan to go to London in the fall and interview one or two advisers. Someone also messaged me privately and said they have seen these firms recommended, though they had no personal experience of them. I trust the person who messaged me does not mind my sharing this. Best to all, Sheryl
American Tax Returns - US and UK Tax Experts Tel: 020 8946 0523 I believe the principal here has a username Guya, who may have come across on various blogs. He is a highly knowledgeable/experienced advisor on UK/USA tax issues.
https://www.usuktaxservices.co.uk/
https://britishamericantax.com/
I really appreciate this and will check these out and look over your advice. MeganSam, if I find someone who seems good I will let you know too. We plan to go to London in the fall and interview one or two advisers. Someone also messaged me privately and said they have seen these firms recommended, though they had no personal experience of them. I trust the person who messaged me does not mind my sharing this. Best to all, Sheryl
American Tax Returns - US and UK Tax Experts Tel: 020 8946 0523 I believe the principal here has a username Guya, who may have come across on various blogs. He is a highly knowledgeable/experienced advisor on UK/USA tax issues.
https://www.usuktaxservices.co.uk/
https://britishamericantax.com/
