Moving back to UK
 

Hello expats!
I never thought I would be doing this but circumstances necesitate that I move back to live permanently in the UK.
I have been in the USA since 1978 and have both social security and my UK pension since they were available to me. I started the process of becoming a US Citizen back in August, and it looks like it will happen sometime in January/February 2025, and I'm looking at April or May for a moving date.
I have been advised that, as a citizen moving back to the UK, I am entitled to receive my USA SS into a UK bank account, in perpetuity. I have also been informed that I may be taxed on that USA SS because I need to file a US tax return each year and the rules change from being a resident in the USA and a resident of the UK. Some of this "information" is confusing, contradictory and generally designed to drive a person nuts!
I realize that I will be financially worse off in the UK, looking at property prices, both to puchase and for rental is staggering. During regular visits to the UK, I have always been aware of how much more expensive things are. However, I'll have to get around it somehow.
I would welcome advice from anyone who has made this move, or is in the process of doing it.
Thanks. John V.

Re: Moving back to UK
 

That depends on where you are and are going to. It's MUCH more expensive for me here (Boston) that it was in the UK (Berkshire). My grocery bill alone is three times the price, utilities are higher, wifi is higher, and we pay a heck of a lot more to rent a house much smaller than our UK one. Everything costs a lot more here other than gas, but I'm guessing you live in a cheaper area than Boston (i.e. pretty much anywhere else). :lol:

You may be taxed on your SSA but it depends on your earnings. You will need to file a return each year though. Do you get a full UK pension?

You may also be eligible for benefits in the UK, again depending on your earnings, there are calculators online you can use to check that.

Best of luck.

Re: Moving back to UK
 

Thanks for the reply. I have heard that Boston is an expensive place to live, however I am in Greensboro NC and find it affordable.

With regard to taxation, I have no other earnings aside from SS and my full UK pension. Well, I do have interest earnings on high yield savings accounts but they don't amount to much, and for the last 3 years I have not paid any tax on my yearly filing, nor have I got a refund!

I am a UK citizen but I don't own, or rent, any property there. When I have my USA citizenship I will have dual nationality. Thanks for the tip on possible UK benefits, I'll look that up.

Thanks again

Re: Moving back to UK
 

Costs will depend largely on where you plan to settle in UK. Any clue where that might be yet?

Re: Moving back to UK
 

My wife and I are also dual citizens living in the UK and my wife is in receipt of SS, paid directly into our UK bank - works great. I have applied for SS but they are many months behind as the application has to be reviewed by the Federal Benefits Unit in the London US Embassy.

Your SS will only be taxable in the UK due to the tax treaty so if you had enough income to file an IRS return the taxable portion will be shown as zero on the 1040. (The gross amount of your SS is taxable by HMRC).

We also find it much cheaper to live in Yorkshire than where we were in Texas. Our daughter recently moved back from Mid City, LA and finds it incredibly less expensive here than LA. She still works for the same company, but is paid by their UK office, and has to go back to LA 2 or 3 times a year and always comments on how much more expensive basic things like groceries costs. All the other usual expenses such as WiFi, phone plans, property tax, insurances of all types, including private health insurance are much cheaper here.

She sold her small house in LA and bought 2 larger houses here with the proceeds. (The one she lives in is huge and the other is a 3 bed detached house that she rents out)

Re: Moving back to UK
 

Thank you for your input. I was thinking about north Derbyshire, the Dales, which is almost Yorkshire, and I was raised in Duffield, just north of Derby so I'm quite familiar with that location. Presently I'm living in Greensboro NC, which I have found to be affordable and a very pleasant place to live.
As I understand it, as a US citizen residing permanetly in the UK, your SS is payable, in perpetuity, into a UK bank or Building Society (if they still exist.) Should you return with Permanent Resident status (Green Card) they shut you down after 6 months. Is this still so?
Being a UK citizen, I understand you are entitled to the NHS after a brief period that establishes your residency/permanance. However, I worked for about 10 years in the UK before residing in the USA, do you know if this counts toward that? I emigrated in 1978 and worked full-time until my retirement in 2008.
You mentioned that the the gross amount of your SS is taxable by HMRC, at what rate is that tax? My gross amount for 2025 has $185 deducted to fund my Medicare Advantage Health Insurance, about 13.5%, would that amount to the same principal of HMRC.
Although retired, I have a couple of gigs on a self employed status. I always declare it on my tax filing but I have not paid any taxes in the last few years, nor have I received a refund. Are such things common in the UK?
Thanks again

Re: Moving back to UK
 

I don’t know for sure about green card holders and SS once you move back, hopefully someone else will confirm yeah or neah.

NHS has no delay period, you will be covered on day 1 of returning to live. Done that, no issues, brought my prescription from the USA and had it immediately prescribed by my new GP the first week here.

HMRC will tax your SS before any deductions for Medicare. Pretty sure that Medicare Advantage will not provide any cover once you leave the USA so I guess you will be dropping it once here. SS is taxed like regular income at your marginal tax rate. It is added to your other sources of regular income such as OAP, interest etc including income from self employment. If that total income is greater than the personal allowance of £12,570 then the excess will be taxed at 20%. If you are fortunate to have income over £50,270 then the excess will be taxed at 40%.



https://www.gov.uk/income-tax-rates

Re: Moving back to UK
 

Thank you.

I appreciate your time and information. As a matter of interest, when you sold up in Texas, did you ship your furniture etc to UK, or did you buy new in the UK?

Re: Moving back to UK
 

I've done both (I've moved back US to UK twice) and probably the most important consideration is that UK houses are generally smaller than typical US houses, so some US furniture items will be too large to fit comfortably. Especially beds. I brought back most of my furniture the second time, and although it was convenient because I didn't have to buy new furniture, over time I've sold off almost all of my US furniture.

It's also important to decide if you will buy a house (so, unfurnished) or rent (usually furnished, but not always). Obvious implications for bringing furniture back with you.

Re: Moving back to UK
 

Yes we did ship a lot of furniture to the UK, but not our beds or appliances or other electrical goods. However, we moved first to a rental house and then bought a big 4 bed house by UK standards (and bigger than the 2 bed apartment we were moving from) so we knew the room sizes etc. As dunroving points out, it’s an easy mistake to make to discover stuff doesn’t fit after you have shipped it.

Re: Moving back to UK
 

You do not lose your SS if you return to the UK with Permanent Resident Status, nor do you lose it if you surrender the Permanent Resident Card. I returned in 2016, surrendered the I-551 in 2018 and started claiming benefit in 2020. Still get paid, like clockwork every month.

As a non US person I only have to worry about UK taxes. If you are both a US and UK citizen you would have to submit two tax returns although you should only be taxed once.

Re: Moving back to UK
 

Hello kfbell.
Thanks for that information. I have already started my US citizenship application and paid the fee. This was back in August and I was told it would take about 5 months to complete the process, however, having done so, I do not have to renew my I-551. Which was good as it was due for renewal.
I'm assuming that you were still working in 2016, however, at what age did you start to claim SS? The later you wait, the more you are entitled to. I started at 62 as I was ging through a rough period and it was income, and have now been claiming it for 14 years.
As a UKUSC, you say I have to file a tax return for both the UK and the USA but only pay taxes once. Whcih one takes precedence? In the last 3 to 4 years in the USA I have not paid any taxes, nor received any refunds, my "Personal Allowance" is great enough to cover any taxable amounts. I understand that the UK "Personal Allowance" is £12,570 which is comparible to the US one, depending on convertion rates, is it likely that I would not pay any UK taxes if my SS and UK State Pension are my only incomes?
I really appreciate your input, I have been in the USA since 1978, and have completely lost touch with UK taxation.

Re: Moving back to UK
 

The IRS website has useful Q&A interactive pages to determine if you should file an IRS return.

for non-resident aliens see below:

https://www.irs.gov/help/ita/am-i-re...ual-tax-return

If you are a US citizen then you should use this option below as you are always considered resident in the USA for tax purposes and from what you say then if your income is low enough from all sources you don’t need to file a return: (your SS taxable income in the USA is zero by treaty while living in the UK)

https://www.irs.gov/help/ita/do-i-ne...e-a-tax-return

Re: Moving back to UK
 

And for additional clarification - Green Card holder is treated the same as US Citizen for tax purposes.

Re: Moving back to UK
 

[QUOTE=durham_lad;13288772]
NHS has no delay period, you will be covered on day 1 of returning to live. Done that, no issues, brought my prescription from the USA and had it immediately prescribed by my new GP the first week here.
/QUOTE]

Well..in theory. But I would advise anyone to take at least a month of medication with them.

I agree with you that access to the NHS is immediate for anyone who has the right to live in the UK (as the OP does) with the intention of living there permanently. Doesn't matter about how much tax one has paid on the past. A quick Google and you'll find this on the NHS website.

But people may well find that the individual doctors will try to put barriers in the way because they say that they only cover specific postcode areas, and ok they'll ask for proof of address etc. They can't really do this (after all homeless people or people on holiday are entitled to see a GP if necessary), but it's easier not to argue and just be prepared for this in advance, and getting this evidence can take a while.

Then there's the bureaucracy of the GP practice.

In my experience, registering in Derbyshire at a temporary address earlier this year and then in Yorkshire at permanent address last month, it took a month on both occasions. And involved several trips to the doctors and basically camping out in their waiting room on the day my medication ran out.

It shouldn't have to be that way, and it depends on how lucky you are with your choice of GP. But as I say I think it's best not to rely on getting medicine within a week.