aprilS

Hoping someone can answer a couple of questions for me:

Is a student who is working in the US with an OPT extension to the F1 visa considered a UK resident or US resident for tax purposes?
I understand that US earnings will be taxed in the US but are there be any implications for UK held investments such as an ISA or Unit Trust?
Will a self-assesment UK tax return need to be submitted detailing US income?

Thanks

zisaai

A student on an F1 visa is consider nonresident for US tax purposes for up to 5 calendar years. So there is no requirement to report UK held investments. They are also exempt from social security and medicare payroll taxes for the first 5 years.

aprilS

Would that be counted from the start of studies or the start of work?
With a 4y bachelor plus 1y master that uses up those 5 years. OPT is likely to last 3 additional years.

zisaai

Generally, foreign students in F-1, J-1, or M-1 nonimmigrant status who have been in the United States more than 5 calendar years become resident aliens for U.S. tax purposes. So a student arriving in mid-2024 will be treated as resident for tax purposes for the calendar year 2029 onwards. At that point their worldwide income becomes subject to US tax.

aprilS

Thanks for the info.