Moving - Tax question I am confused about!

Hi
I am trying to work out the potential tax situation when moving to the UK from the US. Basically - i don't get how you can be taxed in 2 places? For example - if you earn $260k in the UK (so roughly £130k) jointly and you get the tax break of $80k (or whatever it is now) per person - you pay tax on the remaining $100k even if you pay full tax on it in the UK? Maybe I am misunderstanding but I don't get how this is possible. I get paying SS tax but this is ridiculous!.

Am I wrong about this?

Thanks! and I did try and search for this but didn't find anything.......






You'll also owe U.S. Social Security taxes if your country of residence has no treaty to coordinate its social service coverage with the United States. However, if such a treaty is in force, you'll pay foreign social service taxes to your host nation and will not be required to pay U.S. Social Security taxes. In addition, you may be subject to estate and gift taxes if you transfer property, no matter where that property is located. If you maintain a house in the United States, you may owe state income tax and local property tax. For more information, consult a tax advisor or contact the IRS at (800) 829-3676 or newcomer link: http://www.irs.gov [nonactive] and request Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

Generally speaking the US Federal government will give credit for UK tax.

If you have a California living trust or remain CA resident there will be some element of double taxation.

gaya - would you be willing to email me. I'll be moving to the UK soon and will need a good tax person familiar with both US and UK tax prep.

or if anyone else has any recommendations on good people they have used please let me know.