US citizens and Green Card holders are in the unenviable position that their worldwide income and gains are subject to US taxation, irrespective of whether or not they are based in the US. Invariably, US nationals and Green Card holders living overseas have ongoing US tax issues and filing requirements as a result.
These have become more intricate in recent years, and specialist advice may well be required to ensure compliance and avoid what can be very significant penalties. The “FBAR” regime for foreign bank account reporting and the treatment of passive foreign investment companies (“PFICs”) are particular cases in point.
It is critical to stay current and anticipate where changes to the US tax code may be made. We therefore work with US-based CPAs to provide specialist and up-to-date US tax advice and compliance services.
The interaction of the UK and US tax also needs careful handling, and the application of the UK/US tax treaty is often important. There may even be a third jurisdiction to bear in mind in terms of establishing taxing rights and claiming appropriate foreign tax credits, where the source of income arises outside both the UK and the US.
We can help to manage the interaction of UK and US tax and assist with the following:
- Identifying US compliance and filing requirements
- Preparation of US Federal and State tax returns
- Managing the timing of UK and US tax payments and other foreign tax credit planning
- Cross-border pension planning
- Identifying taxing rights and planning opportunities under the UK/US double tax treaties
- Estate tax planning in light of the UK inheritance and US gift & estate tax regimes
Please contact us to speak to an adviser about UK and US tax assistance.