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Where Taxpayers and Advisers Meet

Moving to UK from the US

MikeMax
Posts:1
Joined:Wed Aug 06, 2008 3:08 pm

Postby MikeMax » Mon Feb 09, 2004 8:58 pm

I will be moving to UK from US to take up employment in UK. I have savings here which I want to bring with me to UK. Can I bring these funds earned in the US to UK and make use of them in UK? Is it subjected to any income tax? Would there be any benefit if I move before 6th April to avoid paying any tax for this year?

Any insights in this matter will be highly appreciated.

Ian McTernan CTA
Posts:1232
Joined:Wed Aug 06, 2008 3:02 pm
Location:Bedford
Contact:

Postby Ian McTernan CTA » Tue Feb 10, 2004 1:43 pm

Assuming you are a US citizen, then no income tax arises on the movement of capital from US to UK. Beware that any continuing source of income from the US that is brought into the UK will be taxed on the remittance basis in the UK. You will continue to be liable to US taxes on your wordwide income and will have to complete a US tax return each year- there are lot of dual handlers in the UK that can deal with this for you.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com

davidc@james-barry.c
Posts:3
Joined:Wed Aug 06, 2008 3:08 pm

Postby davidc@james-barry.c » Fri Feb 13, 2004 4:02 pm

Depending on how long you are moving to the UK for, and also the level of your earnings, it may well be worth considering moving to the UK as soon as possible in the current UK tax year, as there is potential to take advantage of the UK personal allowance (similar to personal exemption in US) and lower tax rate bands on income taxable here in the 2003/04 UK tax year.
As Ian mentions above, if you are a US citizen you will still have to file a US tax return each year, even if living/working in the UK (Please note though that foreign tax credits can be claimed on the US return for UK taxes paid). Please don't hesitate to contact me if you will require assistance with your US taxes whilst over here.
davidc@james-barry.co.uk


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