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Moving back to the UK

Moving back to the UK

Old Sep 27th 2023, 12:16 pm
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Default Moving back to the UK

I have been a permanent resident in the USA for 18 years. I have been paying taxes and also into an FRS retirement system.
When I move back to the UK will I have to continue to file yearly taxes in the USA ? Will my UK investments need to be declared if that is the case ?
I am sure there is a lot I will need to know so if there is a post on this already please let me know.

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Old Sep 27th 2023, 2:54 pm
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Default Re: Moving back to the UK

If you are a U.S. Citizen or Green Card holder then you are subject to IRS taxation and financial reporting requirements no matter where in the world you live. So, yes you would have to report all UK investments (as you do now) and submit a IRS tax return. The only way to avoid that is to relinquish citizenship or your green card. If your total worldwide assets are less than $2M that is doable without too much pain, if more than that then there will be some financial pain. Moving from the US to the UK is not as onerous as the other direction, but there are some things you should take care of regardless because you may be able to optimize the total taxes paid depending upon how you manage any US based assets but that depends upon what you have and how long before you move back.
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Old Sep 27th 2023, 3:11 pm
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Default Re: Moving back to the UK

Originally Posted by Glasgow Girl
If you are a U.S. Citizen or Green Card holder then you are subject to IRS taxation and financial reporting requirements no matter where in the world you live. So, yes you would have to report all UK investments (as you do now) and submit a IRS tax return. The only way to avoid that is to relinquish citizenship or your green card. If your total worldwide assets are less than $2M that is doable without too much pain, if more than that then there will be some financial pain. Moving from the US to the UK is not as onerous as the other direction, but there are some things you should take care of regardless because you may be able to optimize the total taxes paid depending upon how you manage any US based assets but that depends upon what you have and how long before you move back.
Thanks. Its something that I will have to talk with a professional about I think. I would have a retirement plan and social security payments at retirement age
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Old Sep 27th 2023, 3:21 pm
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Default Re: Moving back to the UK

This link may or may not help you.

Green card holder moving back to UK, questions about 401k, ss and taxes

Also remember that absent formally renouncing citizenship or your Green Card, as a US Person (in the eyes of the IRS) you will be very restricted on what investments are open to you in the UK, and it could also impact attaining a mortgage if that is something you are interested in.

durham_lad has a lot of knowledge regarding a return to the UK from the US, I am sure he will chime in when he has time.

Last edited by Glasgow Girl; Sep 27th 2023 at 3:24 pm.
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Old Sep 27th 2023, 5:05 pm
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Default Re: Moving back to the UK

Originally Posted by spowell
Thanks. Its something that I will have to talk with a professional about I think. I would have a retirement plan and social security payments at retirement age
If you are only a green card holder, if you are moving from the US and not maintaining a residence in the US, you will eventually be abandoning your residency status. If you have no plans to return to the US, then revoke your status officially or if you wish to maintain your ability to once again live in the US, get your US Citizenship before leaving.

Moving Back To The UK forum will also be helpful to you with most of your questions.
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Old Sep 27th 2023, 5:24 pm
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Default Re: Moving back to the UK

To escape the clutches of the IRS you need to file Form I 407 officially renouncing your green card. Until then, or you are are otherwise formally notified that your green card has been revoked you are still subject to US taxes and reporting. Don’t depend upon just leaving to have it considered abandoned, it could be a very long time before that happens, it’s not an automatic process.
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Old Sep 27th 2023, 6:05 pm
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Default Re: Moving back to the UK

Great advice above. I would definitely revoke your green card rather than let it expire. While you are a US person you will have to continue to file US tax returns and have all sorts of restrictions on the types of investments you can have in the UK. Even simple things like cash ISAs and Premium Bonds are tax free in the UK but taxed by the IRS if you are a US person.

We moved back after 29 years in the USA and there are a few things worth doing in preparation. For example as soon as you quit your job I would recommend rolling over your employer pension plan (e.g. 401k) to an IRA with a brokerage that supports overseas customers. (You won’t be able to do this from overseas). Make sure you have an online SS account before you leave and keep it current because you can get your annual statements and apply for SS as soon as you are 62, or later. Start a thread in the Moving Back to The UK forum where more folks will see your questions that have made the move.
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