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Topic: Moving expenses tax deductible and visa as professional expense  (Read 1115 times)

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It is my understanding that moving expense deductions belong to the country one is moving to.  I am moving from the US to Lincoln.  Can anyone confirm that I will be able to deduct moving expenses - not reimbursed by employer - when relocating to the UK on the UK tax return?  In addition to the expense of shipping belongings, is there any legal way to deduct the cost of items that must be replaced (such as electronics that won't work there)?  Some expenses may not be considered moving expenses, such as the visa costs, but has anyone been able to deduct the visa costs as professional expenses either on the UK or US tax return?

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Re: Moving expenses tax deductible and visa as professional expense
« Reply #1 on: September 01, 2014, 01:51:49 PM »
In principle, you can take a moving expenses deduction on your US taxes for a US-UK move. However, under US rules, the expenses are considered directly related to the income you earn at the place to which you are moving. If you use the foreign earned income exclusion, that employment income is effectively not taxed so you cannot generally take deductions on directly related expenses.

Can't comment on UK tax treatment of moving expenses.

If your employer pays for your visa, the amount they pay is not taxable to you in the UK (and can be treated as a business expense in their accounts) as long as you have been in the UK less than five years and meet certain other requirements. See here: https://www.gov.uk/government/publications/490-employee-travel-a-tax-and-nics-guide. Unfortunately if you pay for the visa yourself you can't take a UK deduction. There is no US deduction for visa fees under any circumstances that I am aware of.


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