British Expats - Over 40's Moving Back and Catching Up

Other UK ISA providers have no objection to me being USC and gladly took my money - but the interest from [cash] ISA's has to be reported on US Tax Filing as if it were ordinary interest, the US doesn't recognize that ISA interest is tax-free in UK. - even if you don't owe on it, it is still yet more paperwork.

US applies high tax to Stocks and Shares ISA's so these are rarely a viable option.

between two worlds

Jan 28th 2013 11:27 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Sheesh. So complicated! But thanks, J.JsOH.

J.JsOH

Jan 28th 2013 11:30 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by between two worlds (Post 10509571)

Ah thanks for this, Sally. I thought it would be HSBC, if any bank, that would let you have an account in US even if you live elsewhere. We already have an HSBC acct in the US so then I imagine we can keep that even if we no longer have address there.

We still hold an account with a Credit Union that we banked with when we in US. It is useful as a holding place for $$ ready for transfer to ££ to UK bank. They know we have a overseas address and have no problem with it.

For a while we also kept an account with BBT and had a overseas address.

We also have an IRA account with a US financial services firm although they not allowed to purchase investments for us now we are overseas.

between two worlds

Jan 28th 2013 11:33 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by J.JsOH (Post 10509967)

Thanks for this clarification. Not only HSBC, then. Ok, that's good.

J.JsOH

Jan 28th 2013 11:35 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by Fish n Chips 56 (Post 10509643)

Sally.
Can you expand on that, I'm not sure what you are talking about.

The biggest problem I see with investing as a USC in UK is that the US applies high taxes on Mutual Funds that you may wish to hold in UK. The only option is to directly hold individual stocks.

The Stocks / Shares option of ISA's is also highly taxed by US.

J.JsOH

Jan 28th 2013 11:43 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by sallysimmons (Post 10509554)

It's not just wealthy people who think about renouncing - I do too and I won't actually owe any tax in the US.

But the cost of paying international accountants to file returns for us, and the extra returns required because we own a business that's now registered here in the UK, and the stress of managing two different tax systems and two different filing deadlines are all making me wish we'd never bothered with that citizenship process. Of course, when we did it, we had no idea we'd ever be coming home.

It also means that you can't take advantage of most British tax saving opportunities like a regular person, because if you do save any money, you'll still get dinged by the American government.

+2 here also on considering renouncing for the reasons of the burden of tax filing, even though we don't owe any $$ the paperwork is a chore I can do without.

Also, I don't like that USA can, through high taxation, restrict my personal savings / investment options.

Jerseygirl

Jan 28th 2013 1:25 pm

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by sallysimmons (Post 10509554)

When I leave the US it is something I am going to look seriously at. Although the IRS are now taxing people who relinquish US citizenship. Not sure...but I have a feeling they will still have to file tax returns for several years.

Gordon Barlow

Jan 28th 2013 1:53 pm

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by dunroving (Post 10509413)

If they are living in the Caribbean how can they also be GC holders? I thought GC holders were supposed to maintain a substantial presence in the US. :confused:

Traditionally, Islanders have flipped between their homes and the US, and many have families there. It's been an automatic thing to apply for and retain a Green Card, while never having to lodge a Tax Return. Not any more...! New rules.

Gordon Barlow

Jan 28th 2013 1:57 pm

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by Jerseygirl (Post 10510198)

... the IRS are now taxing people who relinquish US citizenship. Not sure...but I have a feeling they will still have to file tax returns for several years.

Jersey. The IRS will probably always retain that option, but I don't think they've begun yet. A friend of mine has just renounced. They cancelled his passport but said "Washington" will let him know in 12 months if there is any problem. !

trottytrue

Jan 29th 2013 2:50 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Its all sounds very complicated to me. I thought once you left a country that was that. But when I think about it my husband has pensions that come from companies he worked for in the US so he will get taxed on those and always will I dont think it would serve him to give up his US citizenship. I remember when we left the UK they sent us a letter in the US letting us know we owed money on our taxes. We paid it just to be sure it would not be held against us if we ever returned. I still have the receipt.:)

Moe is doing find a little tired and he will be on medication for a year for the stint.

J.JsOH

Jan 29th 2013 8:29 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by Jerseygirl (Post 10510198)

We plan to allow a couple more years to pass before we make a move on renouncing. This will allow our tax affairs to settle down and establish a history of no tax due to the USA to demonstrate we are not renouncing to avoid taxation.

J.JsOH

Jan 29th 2013 8:36 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by trottytrue (Post 10511732)

Its all sounds very complicated to me. I thought once you left a country that was that. But when I think about it my husband has pensions that come from companies he worked for in the US so he will get taxed on those and always will I dont think it would serve him to give up his US citizenship. I remember when we left the UK they sent us a letter in the US letting us know we owed money on our taxes. We paid it just to be sure it would not be held against us if we ever returned. I still have the receipt.:)
.......

I'm with you likewise on acting to keep our slate clean of anything that might bite later when circumstances change.

dunroving

Jan 29th 2013 9:09 am

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by Gordon Barlow (Post 10510268)

So how do they maintain a sufficient presence in the US to retain their GC? If they spend most of the time out of the country, surely they lose their GC - it is a permanent resident status after all?

Nice to know that people can't have their cake and eat it for a change.

I feel bad for people who have left the US for good but will still have to pay US taxes, but people who ding back and forth between tax havens to avoid taxes? No sympathy. I don't know how Sean Connery has the nerve to describe himself as being proud to be Scottish. He's never here and doesn't pay his taxes!

Gordon Barlow

Jan 29th 2013 2:19 pm

Re: OVER 50's & 60's Chit-Chat & Daily Catch-Up Thread

Quote:

Originally Posted by dunroving (Post 10512124)

I feel bad for people who have left the US for good but will still have to pay US taxes, but people who ding back and forth between tax havens to avoid taxes?

Well, the US has always taxed "on the passport". They reckon that a Passport holder always has access to US help in case of need, and is protected from the baddies by the US armed forces, etc, etc. They think other nations are crazy to tax only their residents. I have read that Australia is considering changing to taxing its citizens - and maybe Britain too, though I'm not sure about that.

As for people dinging back and forth between tax havens - ALL West Indian islands aren't tax havens, you know! In the good old days before passports and travel restrictions, fishermen used to have homes in several places. That's why there are "colonies" of Caymanians (for instance) in Honduras, Nicaragua, Texas and Florida. The Green Card system just grandfathered them in. Only recently has the IRS come after them.

All times are GMT. The time now is 1:34 pm.

Page 391 of 873

391

Show 40 post(s) from this thread on one page