Moving to the UK: 8 Pre-Arrival Tax Steps for Americans

A view of London featuring Big Ben and the Houses of Parliament, with a double-decker bus on the bridge and a red telephone booth on the street.

Moving to the United Kingdom is exciting, but it can create tax responsibilities in two countries. Americans should review their U.S. and UK tax situation before arrival, not after the first tax deadline.

The IRS explains that U.S. citizens and resident aliens abroad generally follow the same tax filing rules as those living in the United States. This means moving to the UK does not automatically end U.S. tax reporting.

Here are eight pre-arrival tax steps Americans should consider.

1. Review Your U.S. Filing Obligations

Before moving, confirm whether you will need to continue filing a U.S. federal tax return. Most U.S. citizens abroad who meet filing thresholds must file Form 1040 and report worldwide income.

This can include UK wages, U.S. investment income, rental income, retirement distributions, and business income.

2. Understand UK Tax Residency

UK tax residency affects what income HMRC may tax. Your arrival date, days spent in the UK, home availability, work pattern, and ties can all matter.

Once UK tax resident, you may be taxable in the UK on worldwide income unless a specific regime or relief applies.

3. Review the UK FIG Regime

The UK replaced the remittance basis with the foreign income and gains regime beginning 6 April 2025. HMRC explains that the FIG regime replaced the remittance basis and that residence status now plays a key role.

This is important for Americans moving to the UK with foreign income, foreign investment accounts, trusts, or pre-arrival gains.

4. Check Your Former State Residency

Moving abroad does not always end state tax residency. Some states may continue treating you as a resident if you maintain strong ties.

Review your driver’s license, voter registration, property, mailing address, business ties, and family connections. Changing these records before or during the move can help support your new position.

5. Review Investments Before Arrival

Some U.S. investments may be tax-efficient for U.S. purposes but create UK tax issues. Some UK investments may be normal locally but problematic for U.S. tax purposes.

Before moving, review:

  • Brokerage accounts
  • Mutual funds
  • ETFs
  • ISAs
  • Retirement accounts
  • Stock options
  • Trusts
  • Cryptocurrency

Investment restructuring is often easier before becoming UK tax resident.

6. Review Foreign Account Reporting

Once in the UK, you may open UK bank accounts, pension accounts, investment accounts, or business accounts. These may trigger FBAR and Form 8938 filing requirements in the United States.

Do not assume that ordinary local accounts are ignored by the IRS.

7. Plan for Employment or Self-Employment

If you will work in the UK, determine whether you will be an employee, contractor, freelancer, or business owner. This affects income tax, payroll, social security, estimated taxes, VAT, and U.S. self-employment tax considerations.

Business owners may also need to review entity structure and U.S. international information returns.

8. Build a Filing Calendar

Americans abroad often deal with multiple deadlines. U.S. citizens abroad may qualify for an automatic two-month filing extension, but tax payments are generally still due by the regular April deadline. Publication 54 confirms that citizens and resident aliens abroad are subject to the same filing requirements as those in the United States.

UK self-assessment deadlines may also apply.

Start With a Pre-Move Review

A pre-arrival tax review can help you avoid common mistakes, coordinate U.S. and UK reporting, and plan around income, accounts, investments, and state residency.

Expatriate Tax Returns helps Americans moving abroad prepare for U.S. filing obligations before and after relocation.

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