relocation from U.S. to U.K.

[FuriousThug]

Perhaps with a better search function I might have found a relevant post, so please forgive if this is redundant.

There's the likelihood of me relocating to the U.K. from the U.S. indefinitely, where I trade as a sole proprietor for now. I am pretty sure there is little bearing on my brokerage and access (I.B., specifically) for continuing to trade U.S. markets. However, I'm interested to hear anyone's first-person accounts of this particular relocation scenario; i.e., how citizenship/residency/tax-filings/etc were handled, mistakes made/discovered, insight on navigating the tax treaties between the U.K. and U.S., and so on.

Thanks in advance,


FT

 

[spd]

If you dont mind, just out of curiosity what may have you bouncing across the atlantic?

 

[Igor1]

I'm interested in responses too. I'm probably going to relocate soon too, although I suspect my move will be a bit more complicated since I'll be moving from U.S. to Ukraine.

 

[FuriousThug]

family

 

[zdreg]

Quote from Igor1:

I'm interested in responses too. I'm probably going to relocate soon too, although I suspect my move will be a bit more complicated since I'll be moving from U.S. to Ukraine.

Ukraine parliament brawl

I understand your concerns.

 

[Lethn]

Why the hell would you want to come to this post-victorian shit hole?

 

[zdreg]

" I had neither kith nor kin in England, and was therefore as free as air—or as free as an income of eleven shillings and sixpence a day will permit a man to be. Under such circumstances I naturally gravitated to London, that great cesspool into which all the loungers and idlers of the Empire are irresistibly drained."
sherlock holmes

but then again the OP mentioned family

 

[Igor1]

Quote from zdreg:

Ukraine parliament brawl


I understand your concerns.

Heh, yeah. But it's where I was born and where I spent a good chunk of my life. It's the only place where I feel very comfortable and completely free and you can't put a price on that. Not to mention the fact that I can live very comfortably on $600-800 a month, which is perfect for a trader.

 

[LeeD]

Disclaimer: I am not an immigartion consultatnt and I have never been in the position of the OP. I just happen to read forums and know a few people.

With a "work" (where you work for a specific company) or "business" (where you work for yourself) visa one can currently obtain residency after 5 years and apply for citizenship in 6. Though application takes substantially longer, it is advisable to apply for "Tier 1", which doesn't bind an applicant to a particular job or business. A colledge degree, a few years of work experience and a decent income should land "Tier 1" quite comfortably. If you come as a dependant (child, spouse, unmarried partner) of a person with above status, you can apply for residence/citizenship at the same time as they do. As a spouse of a British citizen you can get residency in 2 years and immediately apply for citizenship. Spouses of citisens of other EU countries are out of luck here.

One thing that is advisable is to get the right kind of visa before coming to the UK. You don't need a visa to come to the country but engaging in certain activities (such as self-employed work) may be illegal in this case, changing status while in the country is likely to be more difficult, and any time in the country for immigratiom purposes starts ticking only after the right status is obtained.

If this is something you are gonna do anyway, it's better to do it earlier than later as after the next parlamentary elections on the 6th of May, immigration policies are very likely to be tightened one way or another.

Unless you draw wages or salary, the UK income/capital gains tax doesn't start ticking till you have spent in the country about half a year. At this point you are stuck paying the larger of the UK and US taxes (you should consult an accountant). Remember, in the UK personal income tax goes up to 50% for higher earners.

If trading revenue warrants it, establishing a limited company may be a good option. Corporation tax (especially for small businesses) is way lower than personal income tax, many business expenses (like buying a laptop) are tax-deductible, and you don't pay VAT (UK sales tax at 17.5%) on company purchases. You'll need to make sure that any such company qualifies for taxation as separate entity both in the UK and the US though.

 

[Midas]

Quote from LeeD:

Disclaimer: I am not an immigartion consultatnt and I have never been in the position of the OP. I just happen to read forums and know a few people.

With a "work" (where you work for a specific company) or "business" (where you work for yourself) visa one can currently obtain residency after 5 years and apply for citizenship in 6. Though application takes substantially longer, it is advisable to apply for "Tier 1", which doesn't bind an applicant to a particular job or business. A colledge degree, a few years of work experience and a decent income should land "Tier 1" quite comfortably. If you come as a dependant (child, spouse, unmarried partner) of a person with above status, you can apply for residence/citizenship at the same time as they do. As a spouse of a British citizen you can get residency in 2 years and immediately apply for citizenship. Spouses of citisens of other EU countries are out of luck here.

One thing that is advisable is to get the right kind of visa before coming to the UK. You don't need a visa to come to the country but engaging in certain activities (such as self-employed work) may be illegal in this case, changing status while in the country is likely to be more difficult, and any time in the country for immigratiom purposes starts ticking only after the right status is obtained.

If this is something you are gonna do anyway, it's better to do it earlier than later as after the next parlamentary elections on the 6th of May, immigration policies are very likely to be tightened one way or another.

Unless you draw wages or salary, the UK income/capital gains tax doesn't start ticking till you have spent in the country about half a year. At this point you are stuck paying the larger of the UK and US taxes (you should consult an accountant). Remember, in the UK personal income tax goes up to 50% for higher earners.

If trading revenue warrants it, establishing a limited company may be a good option. Corporation tax (especially for small businesses) is way lower than personal income tax, many business expenses (like buying a laptop) are tax-deductible, and you don't pay VAT (UK sales tax at 17.5%) on company purchases. You'll need to make sure that any such company qualifies for taxation as separate entity both in the UK and the US though.

Great post LeeD!