Go Back  British Expats > Living & Moving Abroad > Moving back or to the UK
Reload this Page >

Looking for financial advisor

Looking for financial advisor

Old Nov 26th 2022, 3:31 pm
  #1  
Just Joined
Thread Starter
 
Joined: Sep 2022
Posts: 21
japettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond repute
Default Looking for financial advisor

I will be returning to the UK after 30 years in US. My financial advisor in the US isn’t familiar with UK tax rules and my previous advisor in the UK isn’t familiar with the US investments I now have. I’m looking for recommendations for a financial advisor based in UK with experience of dealing with/advice selling US investments (mutual fund and annuities). I don’t think I can sell US investments before returning as I’m also going through divorce proceedings, though the terms of my divorce should allow me to keep these investments. Spouse is US citizen remaining in US. I’m hoping we’ll have a court date with a judge in the next few weeks. I have read that selling prior to moving and then reinvesting is beneficial to avoid CG tax, but I don’t think I’ll be able to do this. There will be a penalty if I sell two investments before a 7 year commitment I made last year! I have set up a Wise account to receive my minuscule teacher retirement income. Ahh! Multiple life changes is stressful….. My new location will be in Lincolnshire. Any recommendations gratefully received.
japettee is offline  
Old Dec 12th 2022, 11:13 am
  #2  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,099
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Looking for financial advisor

Sorry to hear that you are going through a divorce and moving back at the same time.

It is not necessary to sell your investments before moving back, so don’t stress too much much about it. Capital gains taxes here are manageable and free of tax or quite low depending on the size of the the actual gains. we’ve sold shares from our US investments each year we have been back since 2016. I don’t have a UK financial advisor I can recommend unfortunately.

https://www.gov.uk/capital-gains-tax
durham_lad is offline  
Old Dec 12th 2022, 12:31 pm
  #3  
Just Joined
Thread Starter
 
Joined: Sep 2022
Posts: 21
japettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond reputejapettee has a reputation beyond repute
Default Re: Looking for financial advisor

Thanks, this is a relief to know. I figured I would just have to sell over time if nothing else transpired. I will research financial advisors with more determination when I get back. Weird buying a one-way ticket this time. Landing on dec 19th
japettee is offline  
Old Dec 12th 2022, 3:48 pm
  #4  
BE Enthusiast
 
Joined: Dec 2008
Posts: 513
tdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond repute
Default Re: Looking for financial advisor

Good timing. You've picked a date when neither the border force or the trains are on strike. Keep an eye on the weather forecast, if there's a snowflake within 10 miles of the airport or a train track, they could yet grind to a halt.
tdrinker is offline  
Old Dec 13th 2022, 9:00 am
  #5  
BE Forum Addict
 
cyrian's Avatar
 
Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,013
cyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond reputecyrian has a reputation beyond repute
Default Re: Looking for financial advisor

The UK Capital Gains tax tax-free limits will be reducing from April 2023 from £12,300 pa to £6,000 pa and then further to £3,000.pa in 2024-2025.
The current CGT tax rates are 10% and 20% depending on your income tax rate. (property is different).
You can protect future investments in the UK within an ISA wrapper - these future gains will be income tax and CGT free.
The maximum annual contribution is £20,000.

cyrian is offline  
Old Dec 13th 2022, 9:21 am
  #6  
BE Enthusiast
 
Joined: Dec 2008
Posts: 513
tdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond repute
Default Re: Looking for financial advisor

One option is to sell £20k of investments each (tax) year and move it into an ISA.
tdrinker is offline  
Old Dec 13th 2022, 11:41 am
  #7  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,099
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Looking for financial advisor

Originally Posted by cyrian
The UK Capital Gains tax tax-free limits will be reducing from April 2023 from £12,300 pa to £6,000 pa and then further to £3,000.pa in 2024-2025.
The current CGT tax rates are 10% and 20% depending on your income tax rate. (property is different).
You can protect future investments in the UK within an ISA wrapper - these future gains will be income tax and CGT free.
The maximum annual contribution is £20,000.
Good info, thanks for that.

Originally Posted by tdrinker
One option is to sell £20k of investments each (tax) year and move it into an ISA.
Good idea, but before doing so be sure that you are no longer a "US Person" to avoid punitive taxes on stocks and shares ISAs as they will be considered PFICs by the IRS. Maybe wait a full year and also be sure to have met the conditions listed below.
If you are not a U.S. citizen, you are considered a nonresident of the United States for U.S. tax purposes unless you meet one of two tests. You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31).
https://www.irs.gov/individuals/inte...sidency-status
https://www.irs.gov/individuals/inte...-presence-test






durham_lad is offline  
Old Dec 13th 2022, 11:55 am
  #8  
Forum Regular
 
Joined: Jan 2014
Posts: 34
Slalomdude is an unknown quantity at this point
Default Re: Looking for financial advisor

Sorry for my ignorance, but are 401k distributions classified as stocks and shares and liable for UK capital gains taxes? I was asssuming they would be classified as income and be taxed at the applicable rate. Is CG tax above and beyond your normal income tax liability ?
Slalomdude is offline  
Old Dec 13th 2022, 12:02 pm
  #9  
BE Enthusiast
 
Joined: Dec 2008
Posts: 513
tdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond repute
Default Re: Looking for financial advisor

With careful planning on dates you might not miss out on the ISA allowance, as the US tax year is 1 January - 31 December and the UK is 6 April - 5 April.

Once you are no longer under US taxes for a calendar year, you can get a £20k ISA allowance for one UK tax year by investing in the period 1 January - 5 April, and another £20k ISA allowance for the next UK tax year by investing from 6 April.

Others are more knowledgeable then me on US taxes, and can confirm.
tdrinker is offline  
Old Dec 13th 2022, 12:41 pm
  #10  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,099
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Looking for financial advisor

Originally Posted by Slalomdude
Sorry for my ignorance, but are 401k distributions classified as stocks and shares and liable for UK capital gains taxes? I was asssuming they would be classified as income and be taxed at the applicable rate. Is CG tax above and beyond your normal income tax liability ?
Distributions from a 401k, IRA or other such retirement account are considered to be regular income by HMRC. No complications there.

CG taxes are above your normal tax liability. e.g. for 2022 if you have £20k regular income you will be taxed at 20% on £7,430 which is after the personal allowance of £12,570 has been deducted. Any Capital gains this year will then have the first £12,300 at 0% then taxed at 10%.As noted above, from tax year 2023-24 onwards those allowances are dropping a lot.

Originally Posted by tdrinker
With careful planning on dates you might not miss out on the ISA allowance, as the US tax year is 1 January - 31 December and the UK is 6 April - 5 April.

Once you are no longer under US taxes for a calendar year, you can get a £20k ISA allowance for one UK tax year by investing in the period 1 January - 5 April, and another £20k ISA allowance for the next UK tax year by investing from 6 April.

Others are more knowledgeable then me on US taxes, and can confirm.
That sounds about right to me.

Last edited by durham_lad; Dec 13th 2022 at 12:45 pm.
durham_lad is offline  
Old Dec 13th 2022, 12:57 pm
  #11  
BE Enthusiast
 
Joined: Dec 2008
Posts: 513
tdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond repute
Default Re: Looking for financial advisor

Originally Posted by Slalomdude
I was assuming they would be classified as income and be taxed at the applicable rate. Is CG tax above and beyond your normal income tax liability ?
To be clear, the same $ won't be taxed twice. It will be income or capital gains, not taxed as both.
tdrinker is offline  
Old Dec 13th 2022, 4:07 pm
  #12  
BE Enthusiast
 
Joined: Dec 2008
Posts: 513
tdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond reputetdrinker has a reputation beyond repute
Default Re: Looking for financial advisor

Originally Posted by japettee
Landing on dec 19th
If you're landing at Heathrow, be aware that the baggage handlers are on strike on 19 Dec., so it might be worth considering travelling light and sending your baggage separately.
tdrinker is offline  
Old Feb 28th 2023, 8:11 pm
  #13  
Forum Regular
 
Joined: Jan 2011
Location: England
Posts: 118
kateg60 is an unknown quantity at this point
Default Re: Looking for financial advisor

[QUOTE=durham_lad;13159934]Distributions from a 401k, IRA or other such retirement account are considered to be regular income by HMRC. No complications there.

If an IRA distribution is made in the US before moving to the UK, and before the April 2023 tax year begins, I know I will taxed by the by US? Can the UK also tax this income? I will be moving myself and funds to the UK after the UK tax year has started.
kateg60 is offline  
Old Feb 28th 2023, 9:03 pm
  #14  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,099
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Looking for financial advisor

Originally Posted by durham_lad
Distributions from a 401k, IRA or other such retirement account are considered to be regular income by HMRC. No complications there.
Originally Posted by kateg60
If an IRA distribution is made in the US before moving to the UK, and before the April 2023 tax year begins, I know I will taxed by the by US? Can the UK also tax this income? I will be moving myself and funds to the UK after the UK tax year has started.
It won’t be taxed. HMRC taxes will start once you arrive and become tax resident. Income prior to arrival is not taxable.
durham_lad is offline  
Old Mar 1st 2023, 1:38 am
  #15  
Forum Regular
 
Joined: Jan 2011
Location: England
Posts: 118
kateg60 is an unknown quantity at this point
Default Re: Looking for financial advisor

Originally Posted by durham_lad
It won’t be taxed. HMRC taxes will start once you arrive and become tax resident. Income prior to arrival is not taxable.
Thank you.
kateg60 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.