It is commonly understood that the US taxes its citizens globally irrespective of their residence and domicile status. This can complicate the tax affairs of US citizens living in the UK; many US citizens are not aware of the extent to which they could be affected.
A US citizen living in the UK could find they are caught by the UK inheritance tax regime and the US estate and gift tax rules. The interaction of these rules and the application of the UK / US estate and gift tax treaty is complicated and may have some unexpected consequences.
Failure to consider and mitigate issues can prove costly.
How can RSM help?
If you find yourself in this position, we can help.
RSM has the knowledge and experience to guide you through these rules as they apply to your personal situation. We can advise you on, and implement, appropriate succession / estate planning, including the preparation of UK Wills and lasting powers of attorney.
If you need advice or assistance, please get in touch with Sophie St John or Rajiv Vadgama.