Tax considerations for US persons living in the UK

Globalisation in the past ten years has allowed many US persons to fulfil their dream of living abroad as expats around the world. However it is important for those moving abroad not to lose sight of the fact that they remain US tax citizens and Greencard holders and must submit annual tax returns to the Internal Revenue Service (IRS) and pay taxes annually.

The US recognises the fact that this may create double taxation and provides expatriate concessions under its domestic law – foreign tax credits and the foreign earned income exclusion. In addition to the concessions available under domestic law there is also a system of tax treaties signed with many countries providing more country-specific concessions. As such individuals should review their US tax obligations in light of their host country’s tax system and tax treaty with the US – if any. This is...