Moving From the US to the UK Financial Planning Checklist

Before moving from the US to the UK, review your tax, retirement accounts, investments, banking, estate planning, insurance and future residence plans.

A proper checklist should usually include:

• US federal tax
• UK tax residence
• US state tax residency
• 401(k), IRA and Roth IRA accounts
• US brokerage accounts
• UK investment rules
• PFIC exposure
• UK reporting fund status
• employer stock, RSUs and options
• banking access
• credit cards
• mortgage and lending
• property
• currency
• pension planning
• Social Security
• UK State Pension
• life insurance
• health cover
• wills and estate planning
• beneficiaries
• trusts
• business interests
• education funding
• timing of the move

The IRS says US citizens and resident aliens abroad are generally subject to tax on worldwide income.

GOV.UK says whether you pay UK tax on foreign income depends on whether you are UK resident.

That means a move to the UK can create a dual-system planning problem.

You may remain inside the US tax system while also becoming exposed to UK tax rules.

The planning point is simple.

The best time to review US-to-UK financial planning is before the move, not after accounts are restricted, tax residence has changed or investments have become awkward.

Moving from the US to the UK is not just about moving bank accounts.

It is about making sure your financial structure still works once you become UK resident.

1. Review US federal tax

US citizens and green card holders may remain within the US tax system even after moving to the UK.

Review:

• US filing obligations
• worldwide income reporting
• estimated tax payments
• foreign tax credits
• foreign earned income exclusion where relevant
• US retirement account reporting
• investment income
• capital gains
• foreign accounts
• foreign trusts
• foreign companies
• UK pension interaction
• adviser coordination

2. Review UK tax residence

UK residence can bring foreign income and gains into the UK tax system.

Before arrival, review:

• expected arrival date
• statutory residence test
• split-year treatment
• foreign income
• foreign gains
• UK tax year timing
• remittance issues where relevant
• temporary non-residence considerations
• UK reporting requirements
• double tax relief

The date you arrive and the tax year you become resident can materially affect the planning.

3. Review US state tax

Leaving the US does not automatically end state tax exposure.

Review:

• last state of residence
• domicile indicators
• property
• driving licence
• voter registration
• family ties
• business interests
• state-source income
• remote work
• deferred compensation
• equity compensation
• retirement income
• final state filings
• evidence of departure

This is especially important for people leaving states with more active residency rules.

4. Review 401(k), IRA and Roth IRA accounts

US retirement accounts often remain in the United States after the move.

Review:

• whether accounts can remain open
• foreign address restrictions
• 401(k) rollover options
• IRA custodian access
• Roth IRA UK treatment
• RMDs
• withdrawals
• withholding
• beneficiaries
• investment options
• employer stock
• currency
• retirement income sequencing

Do not roll over, withdraw or restructure retirement accounts before reviewing both US and UK implications.

5. Review investment accounts

US brokerage accounts can become complicated after UK residence.

Review:

• whether the provider supports UK residents
• whether mutual funds or ETFs create UK or US issues
• PFIC exposure
• UK reporting fund status
• capital gains
• dividend taxation
• estate tax exposure
• currency exposure
• ISA eligibility
• UK platform options
• US tax reporting
• investment policy

A portfolio that worked in the US may not work cleanly after moving to the UK.

6. Review banking and cash

Banking becomes more important during the transition.

Review:

• US bank accounts
• UK bank accounts
• credit cards
• mortgage payments
• cash reserves
• currency transfer costs
• emergency fund
• dollar liabilities
• sterling spending
• timing of salary
• tax payments
• pension contributions
• school fees
• property costs

You may need cash in both dollars and pounds during the move.

7. Review insurance

Insurance should be checked before you lose employer benefits.

Review:

• life insurance
• critical illness cover
• income protection
• health insurance
• employer group benefits
• disability cover
• long-term care exposure
• mortgage protection
• policy jurisdiction
• premium currency
• whether existing cover remains valid in the UK

Do not assume US insurance policies work the same way after relocation.

8. Review estate planning

US-to-UK estate planning can be especially important.

Review:

• US wills
• UK wills
• trusts
• powers of attorney
• beneficiary forms
• 401(k) and IRA beneficiaries
• life insurance beneficiaries
• US estate tax
• UK inheritance tax
• non-US spouse planning
• children’s residence
• guardianship
• property ownership
• liquidity

A US estate plan may not be enough once the family is UK resident.

9. Review employer stock, RSUs and options

Employment-related equity can be complicated across borders.

Review:

• grant dates
• vesting dates
• exercise dates
• workdays
• country allocation
• tax withholding
• payroll reporting
• capital gains
• employer reporting
• currency
• concentration risk
• trading windows
• exit strategy

Equity should be reviewed before the move, especially where vesting will continue after arrival in the UK.

10. Review future residence

A move to the UK may be temporary or permanent.

Your plan should consider whether you may:

• remain in the UK
• return to the United States
• move to the UAE
• move to Europe
• retire in another country
• leave assets in the US
• move family members at different times
• pass assets to US, UK or non-US beneficiaries

Good cross-border planning is built around the next likely move, not just the current one.

This page is for general information only and does not constitute personalised financial, tax, legal, immigration, pension, retirement, investment, estate planning, insurance, US tax, UK tax, state tax, local tax or currency advice.

Moving from the US to the UK, US tax, UK tax residence, state tax, 401(k), IRA, Roth IRA, US brokerage accounts, PFICs, UK reporting funds, pensions, Social Security, UK State Pension, insurance, estate planning, wills, trusts, beneficiaries, property, currency and future residence depend on personal circumstances and may change.

US tax advice should be taken from a suitably qualified US tax adviser or CPA. UK tax advice should be taken from a suitably qualified UK tax adviser.

State tax, legal, pension, investment, immigration, insurance and estate planning advice should also be taken where relevant.

Financial planning should be coordinated with tax, legal, immigration, investment, retirement and estate planning advice where appropriate.

Do not move, sell, transfer, contribute, withdraw, roll over, restructure or reinvest assets without reviewing US, UK, state, tax, investment, pension, estate, insurance, currency and retirement planning implications.

Investing involves risk. Investment, pension and retirement account values can fall as well as rise, and you may get back less than you invest.

Currency movements can affect investments, pensions, retirement accounts, property, tax liabilities, income and future spending.