UK/US tax

[andy_t]

Hi

I have had a good perusal of this forum and the internet but can not find the answer to my question - assuming I am asking the correct question(s)! This is the situation:

Born and bred in the UK - worked, paid taxes etc.
Moved initially to the US (Texas) on a year visa
Got married (now divorced) but have Green Card & dual citizenship
Currently live, work and pay tax in the US - intend to stay in the US
Continue to pay NI contributions in UK for State Pension
Have used assets from the UK as well as US income to make my life in the US.
Have savings and investments remaining in the UK and pensions that mature in 2010.
Own property, savings and investment, pay into 401k and a seperate annuity in the US.

Wish to write a simple will - most left to my kids in the UK with some to my current partner in the US.

From a tax point of view the relevant taxes are paid in the country where the income, saving or investment is located.

What happens when it comes to inheritence tax / estate tax. Does one tax regime take precedence over the other? Are their complications with non-US residents inheriting US based assets.

If someone could point me in the right direction of where to look for the answers or ensure I am ansking the right questions that would be most helpful.

Thanks for you time

[maths]

In the event that you are potentially exposed to UK and USA taxes on gifts and/or death resort would need to be had to the IHT convention between the UK and USA.

In essence this convention seeks to prevent double taxation and also allocates primary taxing rights to one or other of the two countries.

This is, however, a complex area and I would suggest advice be taken.

[andy_t]

Thanks for the response maths, I thought it was going to be tricky.

Does anyone know the easiest way to find a local tax advisor with experience in this area? I am based very close to Derby.

Cheers, Andy

[andy_t]

I still have not managed to completely resolve the situation. I have had a perusal of US/UK Private Wealth Tax Planning by Robert Williams, Richard P. Layman & Dawn Nicholson ISBN 1845920279 - helped clarify a lot but aptly demonstrated how complex this area is.

I am actually trying to sort this out for my mother and just want to out an end to it. Can anyone suggest a good tax advisor who would be able to assist? As I previously said I am based near Derby, UK so a local advisor would be great but to get some good advice I will not be limited by geography.

Thanks, Andy

[Taxbar]

Andy,

Is this post about you or your mother?

I can assist with the UK/US treaty but would usually work with a US Colleague on US issues as these are very complex.

I am in Manchester and most US tax advisers who can advise, will be in London.

regards

Daniel Feingold

[andy_t]

Daniel

Post is about my mother.

How do I contact you to discuss how you would be able to help?

Cheers

Andy

[guya]

Andy - your mother is a US resident so owes US taxes on all UK based investments and pensions under US rules. She is also required to file an annual FBAR. If her past US returns are incomplete she may choose to use the current voluntary disclosure initiative to confess to the IRS with capped penalties.

If what you say is correct that her past US returns have omitted UK income these will need correcting.

There are several dual US/UK qualified tax advisers - mainly indeed in London.

[bradley13]

Well - each country acts as its own tax nation so to speak so each will have to have the inheritance tax paid so whatever assets you have in the US will have to paid as will your benefits in the UK.