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US - UK Taxes / Re: New non-dom rule may benefit returning ex-pats
« Last post by durhamlad on Today at 09:44:06 PM »
Quote from: PG on Today at 08:27:06 PM
Good timing as I'm planning a return to the UK in 2026 after 30+ years in US  :)

I'm wondering if the "4 years of tax-free foreign income and capital gains" might help avoid UK taxes on a 401k to mega-backdoor Roth conversion after return to UK? Not sure how that would be classified

 My wife and I did that under the current rules. Lump sum conversions to Roth, taxed only in the US.
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US - UK Taxes / Re: New non-dom rule may benefit returning ex-pats
« Last post by PG on Today at 08:27:06 PM »
Good timing as I'm planning a return to the UK in 2026 after 30+ years in US  :)

I'm wondering if the "4 years of tax-free foreign income and capital gains" might help avoid UK taxes on a 401k to mega-backdoor Roth conversion after return to UK? Not sure how that would be classified
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Visas & Citizenship / Re: ILR Questions
« Last post by Caz2518 on Today at 05:39:44 PM »
It was just the spouse declaration this time.  The only other extra was a statement signed by both of us stating where the cash we were using as proof of financial stability came from, as we used the cash route.

Caz
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US - UK Taxes / Re: New non-dom rule may benefit returning ex-pats
« Last post by durhamlad on Today at 05:18:02 PM »
Quote from: Davidtow on Today at 05:08:12 PM
Is there any indication whether this will apply retroactively? We relocated to the UK last year after being away since 1995. It'd be great if any of these changes would help us reduce some potential tax costs in the coming years.

No idea I’m afraid. I haven’t dug too deeply since I think it won’t affect myself or my wife. Our daughter moved back in November 2022 and I doubt it would affect her but it would certainly be nice for her if it does.
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US - UK Taxes / Re: New non-dom rule may benefit returning ex-pats
« Last post by Davidtow on Today at 05:08:12 PM »
Quote from: durhamlad on May 05, 2024, 02:59:40 PM
I think some folks may very well benefit from the new proposals should they come into effect next April, assuming no changes to the proposals following a General Election later this year.

https://www.lawsociety.org.uk/topics...ch-2024-budget

Under the current proposals of both the Conservative and Labour parties, ANYONE, including UK-originating expats, would be able to return to the UK after 10 years of non-UK tax residence, from April 6, 2025, and benefit from 4 years of tax-free foreign income and capital gains (FIG). The reforms will eliminate domicile as it applies to tax and replace it with a residence-based system. Additionally, UK inheritance tax will no longer be coupled to domicile, but residence instead. So anyone coming to or returning to the UK after 10 years of non-UK tax residence will not be subject to IHT until after 10 years of tax residence, but there will a 10 year tail for IHT if you leave the UK after that. This is especially good news for those who have permanently left the UK, since after 10 years of non-UK tax residence, there will be certainty of no liability for IHT. The differences in policy between the two parties announced so far only apply to current resident non-doms. So it is almost certain the archaic concept of domicile is gone for good from the tax system, and a much simpler and fairer residence-based system will be replacing it.

Is there any indication whether this will apply retroactively? We relocated to the UK last year after being away since 1995. It'd be great if any of these changes would help us reduce some potential tax costs in the coming years.
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US - UK Taxes / Re: TIAA-CREF tax issue and contact issue
« Last post by dunroving on Today at 05:06:50 PM »
Quote from: nun on Today at 01:29:00 PM
Yes that's a similar payout rate quote to what I got from TIAA-CREF about 6 months ago. The extra couple of percent over market annuity rates is for long term clients. It's a very good deal for an annuity. If I move back to the UK I'll probably just turn my TIAA Traditional into an annuity rather than doing the 10 year payout annuity as a few thousand a year guaranteed income for life is easier to deal with wrt paperwork and taxes.

The plot thickens! I should have known not to get complacent.

I noticed in the lifetime annuity illustration a table at the end that shows lifetime annuity pay out rates based on vintage of the contributions. All of my contributions to TIAA Trad were made between 1996 and 1999. Payout rate for pre-2006 shows at 10.7%, but my quote is at a rate of 9.3%.

It probably took 5 minutes for me to explain why I was concerned that the quote did not match the payout rate in the table. I was told that maybe contributions were made after 2006 (no; I stopped working for that university in 1999, and stopped working for any US-based, TIAA-CREF university in 2006 (anyway, all of my TIAA Trad is held with the 1996-1999 university as I have liquidated all holdings with the other university).

Eventually, I was told that only (approx.) one-third of my holdings were paid into TIAA Trad before 2006 and the remaining TIAA Trad contributions were paid in during the 2006-2011 and 2012-2017 periods. Their records show these were employer contributions - but my employer stopped making contributions in 1999!

The only reason I can think that they might show this would be if I had rolled over amounts from my other investments into TIAA Trad after I left the US - but I would not have done this purely because I'd have been locking in investments that I intended to start liquidating in 2017. It makes no sense!

I've contacted the university to ask them to confirm the facts for TIAA (I left them in 1999 and they haven't paid any contributions since then). I wouldn't make a fuss, but there's a decent difference between 9.3% and 10.7% ....
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Visas & Citizenship / Re: ILR Documentation - a few questions
« Last post by harcm on Today at 04:20:11 PM »
Thanks Larrabee!

Hopefully just one more question.  For my prior visa both my husband and I completed Consent for the Home Office to verify information forms.  The forms appeared as I completed the online application.

This time the forms didn't appear and they're not mentioned on the checklist.

Do we need to do them?

Thanks!
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Visas & Citizenship / Re: ILR Questions
« Last post by harcm on Today at 04:17:36 PM »
Thank you Caz2518.

For my last visa my husband and I both pad to sign a Consent for the Home Office to verify application information.  The forms appeared for me to print as soon when I finalized the application.

I don't have those forms this time - just the Spouse Declaration.

Did you fill out Consent forms for your ILR?

Thanks again.
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US - UK Taxes / Re: Reporting Worldwide Income
« Last post by sjb2016 on Today at 02:10:55 PM »
Quote from: Redstar on April 20, 2024, 10:31:51 AM
Rather than start another thread (I am sorting many different issues now to get my finances in order), I am wondering if anyone knows if filing amended US returns is worthwhile if you have dependents to claim? I have lived overseas for 9 years and claimed FEIE for all 9. I have at least 4 years with one dependent I claimed on previous returns and a new dependent now (thought need to get their SS number first). Am I right in thinking the refund that you can get with FTC is worth the effort in refiling to claim the child tax credit? From what I read that would be $3000 per tax year ($1500 per child). Part of the reason I want to switch, too, is to be able to contribute to a Roth IRA going forward, but the tax refund would be a huge incentive--I had no idea this was possible!

I realize I'm a bit late to this thread, but I did this in about 2012 because I had been doing just as you were, just excluding everything because it seemed easy, but I then realized I was missing out on the free cash! So, I refiled for the previous three years as my first child was born in 2009. To be honest, it's one of the biggest reason I don't give up my US citizenship! Once I can no longer claim this money, I'll renounce (unless something truly unexpected happnes).
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US - UK Taxes / Re: TIAA-CREF tax issue and contact issue
« Last post by nun on Today at 01:29:00 PM »
Yes that's a similar payout rate quote to what I got from TIAA-CREF about 6 months ago. The extra couple of percent over market annuity rates is for long term clients. It's a very good deal for an annuity. If I move back to the UK I'll probably just turn my TIAA Traditional into an annuity rather than doing the 10 year payout annuity as a few thousand a year guaranteed income for life is easier to deal with wrt paperwork and taxes.
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