Dual Citizenship - Tax Implications?

Hi,

I am thinking about getting my US citizenship, I'm already British.  I have one investment pension in the UK, are there any rules or tax treaty items that I should be thinking about before I get dual?

thanks all,

J

If you're a US resident already then getting US citizenship won't change your tax situation. How are you dealing with your UK pension right now?

Hi Nun...  Well, I'm not touching it, its doing well enough...  At some point, I want to take the funds when I'm of age, and TX to the US.  I know the approach there via a New York broker, yada yada...

I know someone living in the UK that is dual, and the US tried to sting them for tax as they had US investments, now, I am thinking that they dodged illegally, and should pay their dues.

For me though, I simply want to know, in essence, what will change in my life if I'm a dual citizen...

also, do the US accept and allow British Citz to become US, while keeping both?  I am perm-res through corporate sponsorship, married to a pure US wife etc.

thanks buddy...

J

There can be a difference (although rare) in estate tax treatment under the US/UK estate tax treaty for US citizens.

The pension treatment is the same. You'd be filing an 8833 each year already, reporting the pension already on an FBAR and Form 8938 and - possibly - Forms 3520 & 3520-A.

If you become a US citizen you can keep your UK citizenship. If you are living in the US not much will change, but if you move back to the UK you will have far more complex tax compliance issues as a US/UK dual citizen

If someone has US source income there will be a US tax liability....also US citizens are taxed on their worldwide income by the US. UK tax residency might also make your friend liable to UK taxation.