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RETURNING HOME TO THE UK - WHERE DO I BEGIN?

RETURNING HOME TO THE UK - WHERE DO I BEGIN?

Old Jun 24th 2018, 8:13 pm
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Default RETURNING HOME TO THE UK - WHERE DO I BEGIN?

It’s time and ageing parents are my motivation to move back to the UK (my birthplace) after spending 30 years in the USA. Currently, I have no roots in the US, so a relatively easy decision to make. I’ve worked with my current US employer since 1991. I’m stepping out on Faith that I will find work in the UK, due to my contacts in recruitment, and I will reside with my parents in their home. I never applied for a US Citizenship, but I’ve been a US Green Cardholder for 28 years. I’ve just returned from a UK visit (after assessing my parents’ needs) and call me ambitious, but I would like to move back to the US as soon as December 2018. So, my questions are as follows:

1. Where do I begin in terms of US Social Security, retirement plans, and company pension?
2. How do I set this up, so these US benefits follow me to the UK?
3. Should I apply for a US Citizenship? I was told that I would have to denounce my US Green Card, and will not be entitled to my US Social Security (upon retirement), my US 401K/Plan B Retirement Plans, or US pension if I do not have US Citizenship. Is this true? Having read some of the comments on this forum, it appears that there are US tax implications with holding a Green Card and/or US Citizenship upon returning to the UK permanently.

Please advise and thank you for this forum.
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Old Jun 25th 2018, 12:25 am
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Default Re: RETURNING HOME TO THE UK - WHERE DO I BEGIN?

Originally Posted by GretchenCali
It’s time and ageing parents are my motivation to move back to the UK (my birthplace) after spending 30 years in the USA. Currently, I have no roots in the US, so a relatively easy decision to make. I’ve worked with my current US employer since 1991. I’m stepping out on Faith that I will find work in the UK, due to my contacts in recruitment, and I will reside with my parents in their home. I never applied for a US Citizenship, but I’ve been a US Green Cardholder for 28 years. I’ve just returned from a UK visit (after assessing my parents’ needs) and call me ambitious, but I would like to move back to the US as soon as December 2018. So, my questions are as follows:

1. Where do I begin in terms of US Social Security, retirement plans, and company pension?
2. How do I set this up, so these US benefits follow me to the UK?
3. Should I apply for a US Citizenship? I was told that I would have to denounce my US Green Card, and will not be entitled to my US Social Security (upon retirement), my US 401K/Plan B Retirement Plans, or US pension if I do not have US Citizenship. Is this true? Having read some of the comments on this forum, it appears that there are US tax implications with holding a Green Card and/or US Citizenship upon returning to the UK permanently.

Please advise and thank you for this forum.

You will lose your LPR status after being out of the US for over a year without prior authorisation and a bunch of conditions. It is advised that you formally abandon the LPR using form I407 and handing your green card to a US consular officer once you get home. The other points in the last paragraph are all false ! You will still get social security. The SS site specifically addresses that, there are no issues for UK citizens residing in the UK. There are different rules for different countries. I would advise you to open a Rollover IRA at an expat friendly broker and move your 401K to that before you leave the US. You will not be able to open an account once you have left. There are tax implications if you have substantial assets upon your exit, Google expat exit tax or search for covered expat on this or other expat sites.

There are lots of thread discussions which can address your concerns. You will be advised to obtain citizenship before you leave and if there's a remote chance you might want to return someday it is advisable. Good luck on your return home !!
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Old Oct 15th 2018, 7:20 pm
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Default Re: RETURNING HOME TO THE UK - WHERE DO I BEGIN?

I’m in the same boat! I’m looking into moving back to UK for my elderly parents. I’ve been in The US for 27 years. The more I research, the more daunting it seems. Everything from opening a bank account, to getting car insurance, driving license, taxes and managing SS and 401K in American accounts. I’m pretty close to giving up on the idea of moving as it all seems too complicated and risky. Good luck!
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Old Oct 15th 2018, 7:26 pm
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Default Re: RETURNING HOME TO THE UK - WHERE DO I BEGIN?

Nothing risky about it if you are a Brit citizen. Sure, you have to open a bank account, get accommodation, get a new driving licence, car insurance etc but everyone gets through all these issues without too many problems.

Yes, you will need to complete a US tax form each year. Suppose it depends on how keen you are to return to the UK as to whether you are prepared to work out these logistics.

We've just completed getting our UK State pensions paid into US bank accounts. Took some time but eventually it all worked out.
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Old Oct 15th 2018, 8:21 pm
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Default Re: RETURNING HOME TO THE UK - WHERE DO I BEGIN?

I feel your pain! I have decided that following the death of my husband in January ( 10 year marriage) that no ties to keep me in the US to return to the UK to be with family and friends. I have a greencard which expires in two years, but I doubt I will ever wish to live in the USA again and I would probably only visit for vacation which i would do on the VWP much the same as I did before I became a LPR. Though you may not have the ability to enter the US on a green card you will continue to be a "us person" when it comes to taxes, so essentially you have the same obligations as a US Citizen who lives in the UK without the benefits ( the only thing i can think of is the ability to come and go freely within the US, and voting? Maybe someone else can add to the list of benefits) For me I am not that concerned about returning. Each thing you have mentioned requires careful research as each persons circumstances may differ. My personal tack initially was to totally unplug from the US tax system but the calculations for the exit tax have yet to be done so i don't know if i am going to do that sometime down the line or suck up the paperwork for life.....i read that a lot of people on here have mastered the paperwork so it can be done. Many American expats are present in these forums which leads me to believe it is possible to get over these hurdles but may require patience and education on what forms and when they need to be filed. I am hopeful that I will find a path through all this and finally be at peace with what comes. I may or may not pursue the "exit" path - though as a beneficiary of a lifetime annuity from the federal government i suspect the IRS will have made specific rules that I will always have to file something with them regardless of my status.

I was under the impression you could still have your SS benefit if you have contributed enough credits to qualify for them, the uk and usa has a totalization agreement and as for taxes there are dual treaty agreements in place to help minimize the possibility of double taxation though there are exceptions and limits. I have inherited IRA's which when i checked with the financial adviser he advised being in the UK will be fine. Some people here may be able to recommend what works for them. The paperwork can be pretty onerous and I am in no fit mind to tackle that so I have resigned myself to getting in touch with a tax expert who can for the immediate time sort that out for me, it may be that after a while i may be able to master it myself as I will be making my finances as simple as I can. You may want to visit the SS website but in the mean time you might find this article helpful.

https://www.taxesforexpats.com/artic...xpats-q-a.html

I think the problem is - you have a lot to think about and it has all tumbles into you head as a massive bundle of questions. I would take each topic and research as much as you can about each aspect. I wished I had taken more time but I am here now and I must work with what is on the plate now. December may be ambitious if you plan to sort it out yourself - maybe if you have the resources you could take some professional advice? I love this forum, I have found nothing but genuine, helpful advice and a vast knowledge base here, I cannot thank everyone here enough for their willingness to share. I would advise using the forum search button for specific questions, I found it invaluable as it may bring up something useful that has already been discussed.
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Old Oct 15th 2018, 9:12 pm
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Default Re: RETURNING HOME TO THE UK - WHERE DO I BEGIN?

Originally Posted by brokenhearted.
I feel your pain! I have decided that following the death of my husband in January ( 10 year marriage) that no ties to keep me in the US to return to the UK to be with family and friends. I have a greencard which expires in two years, but I doubt I will ever wish to live in the USA again and I would probably only visit for vacation which i would do on the VWP much the same as I did before I became a LPR. Though you may not have the ability to enter the US on a green card you will continue to be a "us person" when it comes to taxes, so essentially you have the same obligations as a US Citizen who lives in the UK without the benefits ( the only thing i can think of is the ability to come and go freely within the US, and voting? Maybe someone else can add to the list of benefits) For me I am not that concerned about returning. Each thing you have mentioned requires careful research as each persons circumstances may differ. My personal tack initially was to totally unplug from the US tax system but the calculations for the exit tax have yet to be done so i don't know if i am going to do that sometime down the line or suck up the paperwork for life.....i read that a lot of people on here have mastered the paperwork so it can be done. Many American expats are present in these forums which leads me to believe it is possible to get over these hurdles but may require patience and education on what forms and when they need to be filed. I am hopeful that I will find a path through all this and finally be at peace with what comes. I may or may not pursue the "exit" path - though as a beneficiary of a lifetime annuity from the federal government i suspect the IRS will have made specific rules that I will always have to file something with them regardless of my status.

I was under the impression you could still have your SS benefit if you have contributed enough credits to qualify for them, the uk and usa has a totalization agreement and as for taxes there are dual treaty agreements in place to help minimize the possibility of double taxation though there are exceptions and limits. I have inherited IRA's which when i checked with the financial adviser he advised being in the UK will be fine. Some people here may be able to recommend what works for them. The paperwork can be pretty onerous and I am in no fit mind to tackle that so I have resigned myself to getting in touch with a tax expert who can for the immediate time sort that out for me, it may be that after a while i may be able to master it myself as I will be making my finances as simple as I can. You may want to visit the SS website but in the mean time you might find this article helpful.

https://www.taxesforexpats.com/artic...xpats-q-a.html

I think the problem is - you have a lot to think about and it has all tumbles into you head as a massive bundle of questions. I would take each topic and research as much as you can about each aspect. I wished I had taken more time but I am here now and I must work with what is on the plate now. December may be ambitious if you plan to sort it out yourself - maybe if you have the resources you could take some professional advice? I love this forum, I have found nothing but genuine, helpful advice and a vast knowledge base here, I cannot thank everyone here enough for their willingness to share. I would advise using the forum search button for specific questions, I found it invaluable as it may bring up something useful that has already been discussed.
I think once you formally revoke your Green Card you stop becoming a US person the next tax year.
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Old Oct 16th 2018, 1:44 pm
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Default Re: RETURNING HOME TO THE UK - WHERE DO I BEGIN?

Originally Posted by Cape Blue
I think once you formally revoke your Green Card you stop becoming a US person the next tax year.
i think you are correct and i may not have been as clear as I should have been with what I was trying to convey. Exit tax may be a concern though, if you meet the criteria to become a "covered" expat. I have had people point out that some people cannot revoke the green card/ citizenship as the tax consequences wipe out their savings. It is another aspect of the journey. My understanding filing the form i -407 with immigration people is not enough to remove you from the burden of tax reporting if you have been a green card holder for 8 out of the past 15 years. Their are exceptions but it is a topic that many people have been able to shed light on here.
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