The UK remains one of the most desirable destinations for American professionals and families seeking international experience, cultural familiarity, and strong career opportunities. However, for US citizens, financial planning in the UK presents a unique set of challenges — primarily due to the US’s worldwide taxation system. Without the right advice, expats can face double taxation, investment restrictions, and complex reporting obligations.
Tax and Residency Considerations
While UK residents pay tax on their UK and global income (depending on residency and domicile status), US citizens are also required to file annual US tax returns regardless of where they live. This dual obligation makes cross-border tax planning essential. The US–UK Double Taxation Treaty and the Foreign Earned Income Exclusion (FEIE) can help prevent double taxation, but careful structuring of income, pensions, and investments is key to optimising your overall tax position.
Retirement and Pensions
US expats working in the UK often contribute to UK pension schemes such as workplace pensions or SIPPs (Self-Invested Personal Pensions). While these can be tax-efficient locally, they may not always receive the same treatment from the IRS. Understanding the implications under both UK and US tax systems — including how contributions, growth, and withdrawals are taxed — is crucial. In some cases, maintaining or consolidating US retirement accounts such as IRAs or 401(k)s may be the more suitable strategy.
Investment and Wealth Management
Standard UK investment products (like ISAs or certain collective funds) can trigger punitive US tax treatment under PFIC (Passive Foreign Investment Company) rules. Working with an adviser experienced in US-connected clients ensures your portfolio remains compliant in both jurisdictions while still meeting your investment goals. Global custodians and dual-qualified financial advisers can structure investment solutions that are efficient, transparent, and IRS-compliant.
Estate and Inheritance Planning
Both the UK and US impose taxes on estates, but the rules and exemptions differ significantly. Coordinated estate planning can help you avoid double taxation and ensure assets are passed on efficiently. Wills may need to be reviewed or updated to reflect both jurisdictions’ legal frameworks.
Expertise tailored to your unique circumstances
At Blacktower FM, we specialize in providing comprehensive financial advice and solutions for UK and US nationals living overseas. Whether you’re an expat in Europe or the US, our team of specialists will help you navigate the complexities of international finance to achieve your financial goals.
Wealth management made easy
With over 35 years of experience, we have established ourselves as industry leaders in wealth management. Our dedicated team of advisors will work closely with you to develop personalized strategies that align with your aspirations, ensuring that your investments are optimized for long-term growth.
Your roadmap to a secure retirement
Planning for retirement can be overwhelming, especially when living abroad. Our retirement planning services are designed to provide you with peace of mind by creating a tailored plan that considers your unique circumstances and goals. Let us guide you towards a financially secure future.
A holistic approach to financial planning
Whether you’re a local resident or an expat, our holistic approach to financial planning ensures that all aspects of your financial life are considered. From tax planning to estate management, we provide comprehensive advice that takes into account both short-term objectives and long-term aspirations.
Your partner in global finance
At Blacktower FM, we are committed to understanding your individual needs and delivering exceptional service. With our extensive knowledge and expertise, we strive to build long-lasting relationships based on trust and reliability. Let us be your guide on the path towards financial success.