US citizens and green card holders who live and work in the UK are faced with the burden of completing both US and UK tax returns.
The Expatriate Tax team at PKF Littlejohn provides a full tax compliance service for US Citizens and permanent residents of the US. These services include:
Preparation of US Federal tax returns - By planning their affairs efficiently, we can ensure that US citizens and green card holders take advantage of any relevant Foreign Tax Credits, Double Taxation Agreements and income exclusions, in order to pay the correct amount of Federal tax. If a US resident or green card holder takes advantage of new investment opportunities while outside of the US, we can ensure that the additional Federal reports required for individuals who have interests in non-US corporations and non-US partnerships are completed.
Preparation of US State tax returns - Individuals residing in a particular US state, or with income generated from a particular state, may be required to file State returns. We can advise on the need to file a particular State return, depending on each individual’s circumstances.
Preparation of UK personal tax returns - We advise individuals on the importance of their residence and domicile positions and how best to determine their UK tax position. The law around residence and domicile is constantly changing but we can help you understand the impact of your domicile status and how best to maximise your UK tax position, whether through claiming the Remittance Basis of taxation or the application of Double Taxation Treaties.
Estate planning and foreign trust reporting obligations – US citizens and residents may be subject to both US Federal Estate tax and the UK Inheritance tax. We can provide lifetime estate planning advice for application in both the US and the UK to help protect your wealth and your family’s future. For those US individuals who have settled non-US trusts, or who are the beneficiaries of non-US trusts, we can guide their way through the complex US reporting requirements.
Completion of Foreign Bank Account Reports and non US financial asset reporting - The IRS and the US Department of the Treasury require annual reports of your non-US bank accounts and your non-US investments. We can prepare these forms on your behalf and safeguard against any penalties which could be imposed for the failure to file these reports.
Advice on expatriation from the US tax system - As the US tax compliance burden increases, more US citizens and residents are choosing to give up their US citizenship or green card. The Expatriate Tax team can provide pre-expatriation advice to reduce or remove any liability to the Exit tax, and can ensure that all necessary information and tax returns are prepared.
Streamlined Filing Procedure - For those US citizens or green card holders living overseas who did not know they had a US tax filing obligation, the Expatriate Tax team can utilize the “Streamlined Filing Procedure” to bring those individuals up to date and back into the US tax system. By filing 3 years of federal tax returns and 6 years of Foreign Bank Account Reports under this scheme, the IRS waives all penalties for the late filing of returns.
HM Revenue and Customs and Internal Revenue Service enquiries – From time to time, HMRC and IRS can enquire into an individual’s tax affairs. The Expatriate Tax team can respond to these enquiries (several of our tax team are Enrolled Agents and can therefore represent taxpayers in front of the IRS) and can work towards a positive and speedy resolution.