Planning to move back to the UK from the US
Planning to move back to the UK from the US
Any suggestions on where to get financial advice from? I've read a number of threads and found some very useful information, but I also know that every case is a little different. Some background that from reading other threads is probably needed:
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Re: Planning to move back to the UK from the US
Well, I would say age 49 is the most important criterion. So it makes sense to find the best employment you can find and be willing to let that dictate where you live. If the job is in (Greater) London you need a lot more money than a job far from London to make it worthwhile.
And since your daughter is (?) apparently under 16 years of age then be aware that if you move to Scotland then her University education is likely to be State paid. Otherwise it likely won't be. |
Re: Planning to move back to the UK from the US
Originally Posted by holly_1948
(Post 12058353)
Well, I would say age 49 is the most important criterion. So it makes sense to find the best employment you can find and be willing to let that dictate where you live. If the job is in (Greater) London you need a lot more money than a job far from London to make it worthwhile.
And since your daughter is (?) apparently under 16 years of age then be aware that if you move to Scotland then her University education is likely to be State paid. Otherwise it likely won't be. You are correct, our daughter is under 16, I understand we will be paying for her university education. Although it will probably be less expensive than here in the US. |
Re: Planning to move back to the UK from the US
What financial advice are you actually looking for?
How to transfer money from your US accounts, transfer money from sale of your US home? |
Re: Planning to move back to the UK from the US
Originally Posted by SanDiegogirl
(Post 12058424)
What financial advice are you actually looking for?
How to transfer money from your US accounts, transfer money from sale of your US home? |
Re: Planning to move back to the UK from the US
I can only speak of the situations as they are today. When you reach retirement age things may have changed, so attempt to stay informed as time goes by.
Originally Posted by bdlhome
(Post 12058465)
My main questions are related to tax implications and when to do certain things. As an example I believe that even if I give up my greencard (which I would have to) I can still leave 401K etc in the US and start withdrawing when I reach the age I can without penalties.
Be aware that currently some folks are finding the 'company' paying the benefit may want to withhold 30% from all payments, including periodic payments. If they do, then a 1040NR has to be filed yearly with the IRS to reclaim the amount. You may find the following two threads from UK Yankee of interest: Tax on 401k lump sum distribution for UK citizen/resident? W8-BEN Form and US Tax
Originally Posted by bdlhome
(Post 12058465)
I also understand that I would be entitled to SS having paid over 10 years(40 quarters), but wonder how that works once I give up residency/greencard.
On a different subject, when you give up the greencard, also be aware of the implications of having been a Long Term Permanent Resident in the States (8 out of the last 15 years). Technically, you are required to file a form 8854. Failure to file 8854 (according to the IRS) means you are still subject to yearly US tax reporting as if you are still a 'US Person'. Filing 8854 will correctly exit you from the US/IRS system and you will no longer be a US Person. Some do file, some don't. Currently, it can be uncomfortable being a 'US Person for tax reasons' living abroad, and it may get worse. No one knows. As an NRA/UK only Citizen, doing any financial transactions in the UK will be no problem, as long as there is no indication that you are a US Person. If it's discovered you are a US Person for tax reasons, things become more complicated as to opening various types of accounts, including any new bank accounts. Be aware of what constitutes 'US Indicia', and how banks, building societies, and brokerage firms may react. Monthly US retirement payments to a UK bank account may trigger US Indicia. How you handle this (and 8854) is your decision. Your daughter will, in time, need to be aware of the consequences of being a US citizen regards tax reporting. She will have no choice as long as she remains a US citizen.
Originally Posted by bdlhome
(Post 12058465)
I also read somewhere that when I sell the US home and when I move back may also have implications.
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Re: Planning to move back to the UK from the US
@theOAP many thanks for the details response, certainly a few things to consider.
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Re: Planning to move back to the UK from the US
A student has to be resident in Scotland for at least three years before commencement of course before the free tuition kicks in.
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Re: Planning to move back to the UK from the US
Just to update my own thread:
We have decided to move back to the UK next year between June and September (while schools are out). Finding out a few things as we continue to plan: As @theOAP stated the 8854/Expatriation is not a fun subject. Having to get current values of company pensions etc to prove/show I shouldn't be a "covered expatriate" Finding that leaving my 401K with Fidelity is going to be a problem because of their rules on non-residents. The plan is to roll to IRA with Charles Schwab who appear to be much easier to work with as a future non-resident. |
Re: Planning to move back to the UK from the US
Originally Posted by bdlhome
(Post 12058465)
My main questions are related to tax implications and when to do certain things. As an example I believe that even if I give up my greencard (which I would have to) I can still leave 401K etc in the US and start withdrawing when I reach the age I can without penalties. I also understand that I would be entitled to SS having paid over 10 years(40 quarters), but wonder how that works once I give up residency/greencard. I also read somewhere that when I sell the US home and when I move back may also have implications.
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Re: Planning to move back to the UK from the US
If you hold your green card and hold your property, some states consider you 'resident' or 'temporarily non-resident' such that they expect you to continue to pay state income taxes. The mentality is "one day, you'll return to your home in our state--you need to pay for the police and fire departments, etc that protected it while you are away".
Seriously. The issue depends a great deal on your state laws and court history, along with your status of course, but it's something you should investigate as you consider the move. Also note your children will have US income tax and financial disclosure (FBAR) requirements annually. They must 'file' a US tax form to take advantage of the overseas tax exclusions (that will essentially mean they pay no taxes). Mainly a paperwork exercise annually. |
Re: Planning to move back to the UK from the US
Originally Posted by Ukoneday
(Post 12308710)
I do know that if you give up your green card (you can go to the embassy in London and hand it in) you don't have to submit a tax return in the US......
Form 8854 is for LPR's. "Expatriation tax provisions apply to U.S. citizens who have relinquished their citizenship and long-term residents who have ended their residency (expatriated)." https://www.irs.gov/pub/irs-pdf/i8854.pdf |
Re: Planning to move back to the UK from the US
Originally Posted by theOAP
(Post 12308805)
Concerning the IRS, that may be true, in certain instances, if you are not a long-term permanent resident, although a return for the last partial year would in most cases be required, but nothing thereafter.
Form 8854 is for LPR's. "Expatriation tax provisions apply to U.S. citizens who have relinquished their citizenship and long-term residents who have ended their residency (expatriated)." https://www.irs.gov/pub/irs-pdf/i8854.pdf |
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