As we approach the special occasion of American Independence Day, MASECO would like to wish all American citizens, whether residing in the UK or the USA, a very happy 4th of July! It has been a tough year for everyone, with many families being separated from their loved ones, and isolated from the rest of the world.
US connected individuals living in the UK have reporting obligations to HMRC and the IRS. The US taxes the worldwide income and capital gains of all US citizens regardless of where they live.
There are some challenges for Americans living in the UK that are important to understand in order to develop optimal wealth planning strategies.
Many US tax payers may not have noticed in the run-up to the festive season that the Foreign Account Tax Compliance Act (FATCA) net continued to tighten. The three Crown dependencies – Guernsey, Jersey and the Isle of Man – all signed Model 1 intergovernmental agreements with the US government in mid-December at the US embassy in London.