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It’s that time of year to start thinking about year-end planning

Americans in the UK not only need to balance two jurisdictions, they also need to take into account the differing tax year ends. As we quickly approach the holiday season and end of the year, it is a great time to review wealth goals and objectives and consider areas of tax planning that require action before 1 January.  Below is a non-exhaustive list of some areas individuals may want to give consideration to. Areas mentioned will not be relevant to all individuals and expert advice should be sought on how to apply opportunities to individual circumstances.


  • Paying your UK taxes by 31st December 2016 to ensure that you can secure corresponding foreign tax credit on your 2016 US tax return.
  • For any individual who will lose the ability to file in the UK on the Remittance Basis from April 2017, begin to consider longer-term options for restructuring assets.
  • Give consideration to accelerating or deferring income between this tax year or next (e.g., a bonus, severance, retirement payments or dividend payments).
  • Give consideration to any benefit achieved from accelerating or deferring any deductible expenses between this tax year and next (e.g. repair expenses associated with a rental property or payment of 4th quarter state estimated tax payment before or after 31 December).
  • Understand your current year exposure to the Net Investment Income Tax (NIIT) charge of 3.8%.
  • Utilising your annual exemptions.
  • Capitalising on any gift tax exclusions available between spouses to optimise tax allowances and marginal rates of tax.
  • Harvesting capital losses to offset realised gains.
  • Dual qualified US-UK charitable contributions to help reduce your tax liability in both jurisdictions.
  • Maximising retirement contributions to take advantage of tax-deferred growth. With the tapered annual allowance having come into effect this past April for additional rate taxpayers, taking advantage of any unused carry forward and current allowances may be beneficial.
  • Determining if you need to take required minimum distributions from your US retirement accounts or annuity distributions.
  • If you are over age 55 and have a UK pension, look at pension drawdown options.
  • Reviewing beneficiary designations on any retirement accounts.
  • Trustees of irrevocable trusts may want to consider distributing all or most trust income to beneficiaries to take advantage of more favourable individual tax rates

Take the time now to discuss current year planning with your tax and wealth advisers so that you have ample opportunity to take advantage of any tax saving actions.

For more wealth planning tips and tidbits from MASECO read our 39 Steps to Smart Living in the UK.

Risk Warnings and Important Information

The above article does not take into account the specific goals or requirements of individual users. You should carefully consider the suitability of any strategies along with your financial situation prior to making any decisions on an appropriate strategy.

MASECO LLP trading as MASECO Private Wealth is authorised and regulated by the Financial Conduct Authority, the Financial Conduct Authority does not regulate tax advice.  MASECO Private Wealth is not a tax specialist. We strongly recommend that every client seeks their own tax advice prior to acting on any of the strategies described in this document.

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