Manos1

I'm planning to emigrate to the USA to be with my wife and daughter, hopefully within the next 2-3 months as my ER1 visa process is coming towards the end stage, currently awaiting interview date, and I want to prepare for the move and tie up all the loose ends in the UK before I move to the US. I'm looking for advise from anyone who has gone through the same thing recently or have knowledge on what are the important thing I need to sort out from a personal/finance view here in the UK before I leave. Sorry this is quite a broad question and if there is already a post related to this that I've missed, I did have a browse before posting.

I'm looking at the gov.uk site for advise and know I will need to tell HMRC, the council and pension provider, bank etc before I leave the UK. And I'll be looking to speak to the pensions advisory service for advise too. Are there any other useful resources that I should check.

I have a Defined Contribution (DC) pension plan here in the UK from my last company (14+ years) and 2 other companies I've worked with for =<2 years. I'm wondering if it would be better/possible to leave my pensions in the current plans or consolidate and transfer them into a SIPP. I'm not sure if it would be worth/possible to consolidate and transfer my pensions to a US provider.
Wondering what the tax implication are on what options I decide on once I've moved to the US & in the future that I would need to consider? Where could I find out more about this or get independent advise on this matter?

Also, could I start driving in the US (Washington/Oregon State) if I get an international driving permit from the UK before I move or would I need to re-take a driving test in the US or can my UK driving license be transferred to a US license once in the US?

I'm sure there are lots of other things I need to consider too that I've not thought about yet.

Thanks in advance, any help you can offer is greatly appreciated.

Rete

I can't find an ER-1 visa. There is an E visa for commerce and there is the Religious worker visa but no ER-1. Can you please explain what visa you are seeking? I understand your wife is only a Lawful Permanent Resident.

Have you done a search of this forum for info on this subject. There is much info out there and I'm sure that others will be along to help you out.


If your driver's license is in a foreign language, then get it transcribed to an international license. If it is a British license, it is not necessary. You can drive on your foreign license in most states for 30 days. Have you wife check the requirements for your license in her state at her department of motor vehicle website.

Why aren't you coming to the US on an Immediate Relative Visa IR-1?

Glasgow Girl

"I have a Defined Contribution (DC) pension plan here in the UK from my last company (14+ years) and 2 other companies I've worked with for =<2 years. I'm wondering if it would be better/possible to leave my pensions in the current plans or consolidate and transfer them into a SIPP. I'm not sure if it would be worth/possible to consolidate and transfer my pensions to a US provider.
Wondering what the tax implication are on what options I decide on once I've moved to the US & in the future that I would need to consider? Where could I find out more about this or get independent advise on this matter?”
__________________________________________________ __________________________________________________

It is NOT possible to transfer a UK pension of any kind to the USA, so there are no options there unless they change the laws at some point in the future which is very unlikely.

Only you can decide if it is worth transferring your existing pensions into a SIPP. There are significant pros and cons to doing so and you should weigh them up with a financial advisor before making a decision. In any case, you are legally required to get documented professional advice from a UK IFA before transferring any pension pot that exceeds 30,000 GBP. If that is the case you will want to do this BEFORE you move over here because it is almost impossible to find a UK IFA who will deal with anyone resident in the USA, and no one will do the transfer without this proof of advice. Also, although you can open an International SIPP as a USA resident there is only one UK SIPP provider left that will open an account for USA residents and that is A J Bell. All the others have shut out USA residents over the past few years. It is entirely possible that A J Bell will do the same so it may be wise to act sooner than later on that front.

Make sure you familiarize yourself with the requirements to declare your pension pots on your tax returns and on FBARs if you meet the criteria. Penalties for not doing so are draconian and have tripped up many new immigrants and cost them significant sums. Ignorance of the laws will not get you any relief. If you have any savings that are not cash based or a direct investment in individual company shares (basically any shared investment vehicle like a Unit Trust, OEIC or investment trust) then make sure you understand the tax reporting and liability that you will incur as soon as you get off the airplane here. There are lots of threads on this but in short if you have any such investments you should sell them BEFORE you move over here, and then reinvest in American mutual funds. Retaining them will incur painful paperwork requirements every year with draconian penalties for noncompliance and excessive tax way beyond normal capital gains. The USA does not recognize ISA’s so don't assume that any investments in an ISA other than cash are protected.

scrubbedexpat099

Presumably a IR1?

IDP not needed as they sort of speak English in the US.

Local DMV site will say how long new residents have to obtain their State License.

Manos1

Thanks Glasgow Girl for the quick response, that is really useful info. I will seek advise from a UK IFA on whether is it worth transferring/consolidating all my pensions to a SIPP, keeping them as they are at present or other options available. I'll read up more on tax reporting and liability and familiarize myself with tax returns and FBARs from other threads and sources. I do have some company shares, not much, that I'm looking to sell now and also have some cash ISA, not much, which I can withdraw anytime. Would I be allowed to keep my UK cash ISA after I leave the UK as I will no longer be paying tax; although I'm planning to make voluntary NI contribution towards my state pension. Would my cash ISA need to be declared on tax reporting in the US once I move there. I may just withdraw and close my cash ISA in the UK if it would involve lots of paperwork for tax returns once I'm in the US. Much appreciated.

Manos1

Thanks Boiler for the quick response. Apologies, my typo, I meant IR-1 visa. I'm hoping my British driving license can be converted/exchanged to a US license/State license after the initial 30 days, without having to re-take test in the US. I shall look into this on the department of motor vehicle website for Washington State (where my wife lives). Much appreciated.

Manos1

Thanks Rete for the quick response. Apologies, my typo, I meant to write I'm coming to the US on an Immediate Relative Visa IR-1 (not ER1). My wife is a US citizen now. I've just started to look in the forum for info related to pensions and am trying to do more research on this from other sources too. Seems there are lots of info out there and its fairly complicated. My drivers license is a British license. I'm hoping my British license can be converted/exchanged to a US license/State license after the initial 30 days, without having to re-take test in the US. I shall look into this on the department of motor vehicle website for Washington State (where my wife lives). Much appreciated.

Nutmegger

Unfortunately, it looks as if WA will treat you as a new driver:
https://www.dol.wa.gov/driverslicense/moving.html

Glasgow Girl

Cash and shares held directly in a company listed on the stock market are about the only foreign investments that avoid the draconian taxes on foreign investments, so if that is all you have then you will dodge that bullet.

You can keep your cash ISA but the IRS will not recognize its tax free status so you will have to report the income on your tax return and pay the associated US tax. You will also have to report it on Form 8632 with your tax return, and on an FBAR to the treasury if you meet the thresholds. In general if the aggregate total of your foreign investments exceed $10,000 then you have to file an FBAR with the IRS every year. If the aggregate total of your foreign assets exceed $75,000 if single or $150,000 if married then you will have to complete Form 8632 with your tax return. You would include your pension funds in determining the aggregate total of your foreign assets so it is likely that you would at least be required to file an FBAR. Although these forms are not particularly difficult to complete independently I would advise using a CPA to file your taxes for the first couple of years and being very clear that you have foreign assets including pension funds. You should not need an expensive international CPA so long as you are clear with a. domestic CPA that you do have foreign assets to report.

Definitely keep making voluntary NI’s until you have maxed out the UK state pension. It is likely the best investment you will ever make!

Manos1

Thanks for the quick response Nutmegger and for the link. Would you know if there is any way to get around this by applying to transfer my British license in another state, while residing in WA? I'm guessing not. It would be an extra hassle to re-take tests again as a new driver in the US.

Manos1

Thank you so much for all your advise and info Glasgow Girl. It is much appreciated.

Rete

99.99% sure that is impossible in all 50 States. Personally I don't know of any State DMV that does require proof of residency when applying for your driver's license.

The tests for the driver's license are easy. I know in NYS the theory test is multiple choice and in many States the driving test itself is in a car park.

scrubbedexpat099

I am not aware of any State that swaps UK Licences, begs the question which other State you can claim residence in?

civilservant

You cannot transfer your license. Your brand new as far as any US state would be concerned.

Don't sweat the test. If they were that hard most US drivers would never make it into the road.

excpomea

and to be fair to us, there is the theory part of the test.
At least you will know what the road sigs ect mean.
The practical part of the test takes about 10 mins.
You will be lucky to actually take it on a public road.