Two countries, one family.
Both parents had new UK employer pensions, three children had US 529 plans and their US mutual funds would be punitively taxed by HMRC. Their London bank could not advise US citizens at all.
- 2tax returns every year, US and UK
- 3college accounts to keep on track
- $1.8Min US funds facing UK tax rules
The US taxes its citizens wherever they live, and the UK taxes residents on worldwide income. Investments that are efficient in one country can be expensive in the other, and the family had already been told to sell everything — or to change nothing.
They wanted to know which accounts to keep, which to change and how to return to the US without a tax bill on the way home.
Keep, change or leave alone.
Our tax director worked with the London wealth advisor and the family's US and UK accountants, with one shared action list.
- 01
Map every account in both systems
We checked how each account is taxed in the US and the UK and flagged the US mutual funds that HMRC treats as non-reporting funds.
- 02
Reposition the portfolio
New savings go into UK-reporting funds that also suit US rules, while the existing US holdings stay put to avoid realizing gains.
- 03
Coordinate pensions and college savings
Both UK pensions are reported under the US–UK treaty, and the 529 plans keep their monthly contributions from a US bank account.