Relocating to the UK from the United States can be an exciting and rewarding experience — but when it comes to managing your money, it pays to plan carefully. As a US citizen, you remain subject to America’s global tax system even while living abroad, which makes financial planning more complex but also more important. With the right advice, you can grow your wealth confidently and make the most of your life in the UK.
Understand Your Tax Position
The US taxes its citizens on worldwide income, meaning you’ll still need to file an annual tax return to the IRS, even if you live and work in Britain. The UK–US Double Taxation Treaty helps prevent being taxed twice, but knowing which income is reportable in each country is vital. Structuring your finances correctly — for example, how your salary, investments, or rental income are declared — can significantly reduce your overall tax liability.
Plan for Retirement
Both the UK and the US offer tax-efficient retirement savings options, but not all are compatible. Contributions to a UK pension may not receive the same tax advantages in the US, while some American retirement plans (like IRAs or 401(k)s) can be retained and managed while you’re abroad. A qualified adviser can help you balance both systems, ensuring your savings remain tax-efficient and your long-term goals stay on track.
Invest Wisely and Stay Compliant
Many traditional UK investment products — such as ISAs or local mutual funds — can create US tax complications under the IRS’s PFIC (Passive Foreign Investment Company) rules. Working with an international wealth manager experienced in US-connected clients ensures your investments are compliant and aligned with your risk appetite and financial goals. A globally diversified, tax-efficient portfolio is key to growing your wealth without unexpected tax surprises.
Protect and Pass On Your Wealth
Estate and inheritance planning is another critical area for US expats in the UK. Coordinating your wills, trusts, and insurance across both jurisdictions ensures your loved ones are protected and that your estate is transferred efficiently, avoiding unnecessary taxation or legal issues.
Expertise you can rely on
At Blacktower FM, we specialize in providing comprehensive wealth solutions tailored to the unique needs of US expats in the UK. Our team of financial experts are well-versed in navigating complex tax regulations including Wealth Tax, Income Tax, Capital Gains Tax, Property Tax, and more.
Protecting your financial future
When you make the move from the US to the UK, it’s crucial to have a solid financial plan in place. With our expertise and guidance, you can rest assured that your finances are protected and positioned for growth.
A diverse range of financial solutions
In addition to tax planning, we offer a host of financial services including International Mortgages and International Pensions specifically designed for expatriates living in the United Kingdom. Our investment portfolio includes Equities, Unit Trusts, Open-Ended Investment Companies Investment Bonds (OEICs), Pension Income, and Rental Income solutions.
Schedule a free consultation today
Ready to take control of your financial future? Contact us today to book a free consultation with one of our experienced advisors. We’re here to help you make smart financial decisions and achieve your goals as a US expat living in the UK.