With the global tax authorities collaborating together to disclose off-shore tax havens the Private Client profession is seeing an increase in wealthy US citizens living in the UK and elsewhere wanting to expatriate from their US citizenship. Under US tax laws the worldwide income of any US citizen or resident is subject to tax. Increasingly Americans are opting to pay an exit tax on giving up their citizenships to avoid the scrutiny of US tax authorities.
As an internationally recognised law firm based in Central London our Private Client team is well placed to provide expertise on personal UK tax issues and the impact of the Finance Act 2008 on those US individuals coming into the UK for a short or long-term stay. The Act has tightened up the remittance basis for UK income tax and UK capital gains tax and has imposed a £30,000 charge on long-stay non-UK domiciliaries.
For those US citizens who settle here and buy a home it is essential that advice is sought on UK succession issues and the effect the double taxation treaty between the UK and the USA may have on the tax-efficiency of drafting a UK Will. Special considerations may also apply where spouses do not have the same domicile status or citizenship.
We also have extensive experience in dealing with estates for US individuals who die with assets in the UK and can deal with all aspects and issues relevant to the UK administration process.