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Topic: US rental income : UK non-dom tax resident ; US citizen  (Read 109 times)

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US rental income : UK non-dom tax resident ; US citizen
« on: July 31, 2025, 11:23:10 AM »
I am a UK non-dom tax resident since 22/23. US citizen.
With the recent changes made by Reeves to non-dom residents worldwide income, the US property which was previously my primary residence and one that I now receive rental income will be subject to UK taxation.

I've gathered that the UK does not allow depreciation deduction as the US IRS allows. This deduction is significant (c$5k). 

My question: Does the UK allow all the other deductions as does the US ?
Any tips or recommendations?

Here is a snip of my most recent 1040 relative to my rental income
newcomer link: https://docs.google.com/document/d/e/2PACX-1vRZt6RPx4LKCvv6R8_hVkq5ye7WHz9zBcnslOlEHCU4LGEPpUUWHo-SKiW4s6CmCz6-6em4iu6K9HFa/pub [nonactive]


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Re: US rental income : UK non-dom tax resident ; US citizen
« Reply #1 on: July 31, 2025, 09:50:13 PM »
Josh - In practice it was rare, very rare, for US citizens to elect to claim the remittance basis. Based on the limited information provided,  electing to have claimed the remittance basis may not have saved much - if any - tax globally. You could nonetheless probably elect to claim the FIG regime for 2024-25, but this still may not produce the optimum outcome. You'll already hopefully be using bookkeeping software so that you'll be MTD compliant once this is required of you. You may wish to engage a dually US & UK qualified tax accountant to provide a full overview of your situation.
« Last Edit: July 31, 2025, 09:54:38 PM by guya »


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