Large Capital Gains coming in next couple of years.

I'm a dual cit. I'm currently in CA.
I have a large Capital Gains coming in the next couple of years.
Wife and I will be moving to the UK in the next couple of years. We can chose the timing of the move.

I'm trying to figure if there's any advantage/disadvantage, tax-wise, to stay in the US until the capital gains arrives, or move to the UK and take it there?

(We're also considering moving to New Hampshire or another State with no CGT to avoid the State tax.)

With the us tax code in complete flux given Trump and the  republican majority in congress, it is pretty impossible to say what the laws will look like when you get your gain - for example some proposals are to tax 50% of the gains like income - only you can do the math to see how that would compare to the current U.K. Law - and of course that too could change again


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Where are you domiciled from a UK tax perspective? Do you have the misfortune (from a UK tax perspective) of a California Living Trust?

Domiciled?
I've been living in CA for almost 20 years, doesn't that mean I'm domiciled here?
No trust or anything. I have an LLC. (The LLC is not connected to the Capital Gains.)

So, by the sounds of it I shouldn't second guess and we should just go back to Scotland when we're ready.

Also, since I'll be keeping my LLC running here, do the taxes on that go first to the UK cause I'll be resident there? Or to the US as the LLC will be located there?

The LLC is a no-no. Restructure it before you (and it) become UK tax resident. Based on what you have said it sounds as if you remain domiciled in one of the countries of the United Kingdom. Consequently, you will be subject to UK income and capital gains tax on the arising basis from the date that you resume UK residency. You may wish therefore to restructure so that you re-base assets before becoming UK resident; especially given the collapse in Sterling this year. You will want a good lawyer skilled in Scottish law, US law and California State rules to design suitable structures.

Thank you.
Sounds like a minefield. I'll try to find good counsel.

Before we moved to the UK, we sold our shares and paid the capital gains as US taxpayers as it is a lower rate than in the UK. Get some advice well before you move.

Thanks..sounds like a plan..and it seems I'll need to take some time to restructure my LLC. So it may be worth taking a couple of years to get everything in order.

The LLC is a no-no. Restructure it before you (and it) become UK tax resident.

Why is an LLC a no no?


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As you are a US/UK dual citizen and will most likely be taxed on an arising basis in the UK you are going to have to deal with capital gains tax with HMRC and the IRS at some point. You could realize you gains before you move to the UK and transfer the cash to the UK. This  will simplify your capital gains and you'll take advantage of an excellent exchange rate, but if you invest the money again at some point you'll have to work out capital gains tax for both the US and the UK. However, another reason to sell before you move is to organize your investments to be both US and UK tax efficient.

If you expect to keep working for yourself in the UK for US clients as you did with your LLC you will need to set yourself up as self employed in the UK and pay UK taxes and national insurance. Make sure you don't keep paying US payroll taxes.

Why is an LLC a no no?


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Triple layers of taxation - UK corporate tax plus UK personal tax on distributions plus US income tax on the underlying income of the entity.  Extra UK annual accounting fees.

If you expect to keep working for yourself in the UK for US clients as you did with your LLC you will need to set yourself up as self employed in the UK and pay UK taxes and national insurance. Make sure you don't keep paying US payroll taxes.

First of all, thanks to all for the feedback.

I'm wondering if there's a way to be resident in the UK but have my business in the US. For some of my clients I need to have a USA small business in order to get contracts.

I will appreciate any information or a recommendation from whom to seek such information.

First of all, thanks to all for the feedback.

I'm wondering if there's a way to be resident in the UK but have my business in the US. For some of my clients I need to have a USA small business in order to get contracts.

I will appreciate any information or a recommendation from whom to seek such information.

I think Guya's comments answer your question. You'll have an LLC with a foreign employee and will have to comply with UK employment regulations as well as dealing with all the tax issues. You need specialized advice.