Giantaxe

I was "improving" on the accuracy of your post.

Actually, I see Tennessee recently abolished its inheritance tax so the total is now four...

mrken30

Thanks for this info. It appears that Oregon inheritance/death tax became an estate tax in 2012. I had missed this change.

Asg123

(Is there a typo (UK/US) here, or am I misunderstanding this?)

As I understand it, if one is a dual US and UK citizen and one dies when living in the US, one is subject to US but not UK tax, is this right?

mrken30

If you die in the US your estate will be subject to US estate tax. The beneficiaries will pay local inheritance tax if applicable. It gets more complex if your estate is in multiple jurisdictions.

Wintersong

Sorry - I was referring to a US citizen inheriting from an estate within the UK.

I just re-read the OP's question and realised that she was actually asking if there were any additional tax implications to being a citizen - to my knowledge, the answer to that is no: tax is levied in the same way whether you're a citizen or just resident.

Bob

Pros and Cons to Getting US Citizenship : British Expat Wiki

Asg123

Sorry, I follow now, thank you.

Steve_

There's some mistakes in that, maybe I should edit it. The issues with firearms have been done away with, various court cases established it was illegal to discriminate under the 14th amendment.

Also Selective Service applies to LPRs, no difference if you're a citizen.

Anyway my main comment was going to be about estate tax seeing as you're all banging on about it. Bear in mind this is the one huge tax advantage to being a US citizen. First off the limit is way higher than it is in the UK (federally) but bear in mind the US only has estate tax treaties with six countries and the UK is one of them.

As a result, say you live in the UK and your health starts to fail, you can get on a plane to the US and as soon as the US becomes your tax home the estate tax treaty kicks in: UNITED KINGDOM ESTATE AND GIFT TAX TREATY

It does say you've got to be in the US for 3 years to be considered domiciled in the US but hey, that's a lot less than the 7 year taper relief for UK IHT and it also says if you're a citizen of both countries and are domiciled in both countries then it boils down to where your centre of "vital interests" is located. So move to the US, move your vital interests and poof, away goes UK IHT.

To me that seems like a pretty damn big advantage to being a US citizen, if your estate is large enough to be hit by IHT.

Bob

You should. It's been a while since it was put together. It's a starting point and covers most of the common ground that gets trotted out every time this question is asked, but hasn't been kept up to date in a while.

kateinbrooklyn

Thanks everybody. You've certainly given me food for thought.

MarylandNed

Six (NE, IA, KY, PA, MD, NJ).

Does Your State Have an Estate or Inheritance Tax? | Tax Foundation

kateinbrooklyn

Thank you. Very interesting.

kateinbrooklyn

Thank you. Very informative.

mrken30

There are also less restrictions being a USC if you are a student pilot.

SultanOfSwing

There really are no cons I can think of, but plenty of pros.

I know the tax liability comes up as a con, but even if you do return to the UK or end up in a third country, I am led to understand that it is pretty unlikely any US taxes will actually be owed. Having to fill in the tax return each year is a small price to pay for having US citizenship that will allow a return to the US at any time in the future with no issues other than the logistics of finding employment/accomodation.

Never having to deal with USCIS again is reason alone to do it