British Expats

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-   -   USD account in uk (https://britishexpats.com/forum/usa-57/usd-account-uk-929109/)

laety Nov 6th 2019 4:29 pm

USD account in uk
 
Hi
we used to live in the US and kept our bank account there since. We are now back in the UK but my husband works for a US company.
they are going to pay him shares USD and as we go to visit the Us often we were thinking of using the money for holidays and avoid exchange rate conversion etc. So instead of paying to our uk account (and converting) and then again convert again to USD I wondered if there are any tax implications in the US if we were to pay the shares in our us bank account ? (We will already pay UK ones so don’t really have to fill up a US tax income declaration)
or do anybody use companies like Transfer wise bank account? I was thinking of opening a usd account (uk based) and use it over there.. any help would be great. Thank you!

TexanScot Nov 6th 2019 6:12 pm

Re: USD account in uk
 
What do you mean by "pay him shares"?

Do you mean they want to allocate him shares into a brokerage account so you can personally sell them for cash at some point down the line, or do they plan on selling the shares on his behalf and then pay the USD proceeds into a bank account?

laety Nov 6th 2019 6:23 pm

Re: USD account in uk
 
Sorry.. never done this before so I’m confused by the terms.
i meant he will have shares maturing so he is planning to cash them in as soon as they mature as this is when the uk tax office will take their cut..
we just trying to avoid multiple exchange rates and fees associated to them..

durham_lad Nov 7th 2019 8:25 pm

Re: USD account in uk
 
I have US private pensions paid into our US account and my wife has her share dividends and capital gains when she sells shares paid into our US bank account. We then transfer the funds to our UK bank account using Transferwise. Works really well.

On the day shares are liquidated I use the exchange rate on that day when filing taxes, not the day we moved the money over.

laety Nov 7th 2019 8:33 pm

Re: USD account in uk
 
So we would need to fill taxes return in the US for that amount if we were to transfer ?
im worried about double taxation

durham_lad Nov 7th 2019 9:16 pm

Re: USD account in uk
 

Originally Posted by laety (Post 12760494)
So we would need to fill taxes return in the US for that amount if we were to transfer ?
im worried about double taxation

We have to file taxes in the USA because we are USCs, not sure about your situation. I was referring to UK taxes.

If you are resident in the UK then you have to pay UK taxes on worldwide income so you should be declaring US income. I am not knowledgeable on tax matters other than our situation as US/UK citizens living in the UK.

laety Nov 7th 2019 9:26 pm

Re: USD account in uk
 
Ah i see. I think I might open a usd bank account with Transferwise and just use the money with a bank card while in the US..

durham_lad Nov 8th 2019 6:31 am

Re: USD account in uk
 

Originally Posted by laety (Post 12760521)
Ah i see. I think I might open a usd bank account with Transferwise and just use the money with a bank card while in the US..

I should have mentioned that there is no double taxation because when I file our US taxes I claim foreign tax credits for taxes paid in the UK.

penguinsix Nov 9th 2019 10:12 pm

Re: USD account in uk
 
If you are required to file a US tax return, it really doesn't matter where the money is paid in. It's all considered 'income" to the USA government. Whether you owe taxes on that "income" is based on the tax treaty and a few other things.

Are you currently required to file a US tax return (i.e. are you a US citizen, recent long-term Green Card holder, etc?)

My other concern would be payment from a US source might not qualify as "foreign income" for the "foreign income exemption" that many expats use but I'm not sure on the specifics here.

laety Nov 10th 2019 7:12 am

Re: USD account in uk
 

Originally Posted by penguinsix (Post 12761462)
If you are required to file a US tax return, it really doesn't matter where the money is paid in. It's all considered 'income" to the USA government. Whether you owe taxes on that "income" is based on the tax treaty and a few other things.

Are you currently required to file a US tax return (i.e. are you a US citizen, recent long-term Green Card holder, etc?)

My other concern would be payment from a US source might not qualify as "foreign income" for the "foreign income exemption" that many expats use but I'm not sure on the specifics here.

no we aren’t required to file in the US anymore as we left 7 years ago and didn’t have green cards etc.


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