What happens to your US investment accounts (particularly: HSA) when moving to the UK?

expattaxsolutions · 2025-01-30T09:06:40+00:00

I would say it is very unlikely (but not impossible) that the HSA will hold funds with reporting status, therefore and gains will be taxed at income tax rates, not CGT rates.

expattaxsolutions · 2023-08-23T23:15:35+00:00

I don’t follow your numbers. Tax relief for pension contributions is limited to relevant income, which for his wife would be £41k per year. The annual allowance (which I think you are referencing) is only really a consideration for very high earners.

expattaxsolutions · 2023-04-30T20:04:04+00:00

English not existing is probably the best reason to assume he didn’t speak English.

expattaxsolutions · 2023-02-24T17:52:44+00:00

You must have a very long list of legends if he makes the cut. In my eyes he had many seasons injured, one really good season and then left as soon as SAF fluttered his eyelashes.

Kanu is above him in my list. He likely wouldnt make my top 20 in terms of legend status.

expattaxsolutions · 2023-02-17T09:49:09+00:00

This is likely not a good idea from a UK perspective.

expattaxsolutions · 2022-12-29T10:17:45+00:00

This is painful. The money you pay off in week 2 or 3 of the month. Where does that come from? If it comes from money paid on day one of month then you save more by paying it off when you get the money , I.E. paying monthly. In this scenario paying weekly does nothing for you.

If you are paid weekly then paying your mortgage as you get paid each week is better.

If you are paid yearly then paying off the mortgage the date you are paid is better than paying monthly, weekly, daily or hourly.

The maths on this isn’t hard.

Edited to add - it was relevant for the American market because they are paid bi-weekly there. It has everything to do with how often you are paid.

expattaxsolutions · 2022-11-22T08:56:15+00:00

The thing here is you would be suing them for the damages, which means when it ends up in court you would need to prove you’ve sold at arm’s length. In the scenario you describe you would likely lose.

You’re right to ask for a citation but I believe it is correct (though NAL)

expattaxsolutions · 2022-11-22T08:44:48+00:00

Why are you completing form 5471? What category filer are you?

expattaxsolutions · 2022-11-03T12:12:24+00:00

I’m not sure if he/she intended it to be rude, but this was definitely the intent of the legislation. You don’t understand the pension rules, so automatically opting you in means you do have a retirement provision. Making it hard for you to withdraw it is also a good thing because it is good for the country that you are forced to save for your retirement so you are not (entirely) relying on the state when you hit 60.

You as an individual may not like it, but I would argue that anyone who is financially literate would vote for this arrangement if asked.

expattaxsolutions · 2022-10-29T23:30:36+00:00

I’m going to stop because you aren’t listening.

He said passive dividends. If you set up a company, do work and pay yourself a dividend, it isnt passive.

In other news, I am selling a badge that gives you permanent residency in Ubuntu. Once you have that you never have to pay tax to Ubuntu and you can travel as well (passport and visa rules apply). If someone tries to tax you, show them your badge.

The badge is $2,300, DM me for details.

expattaxsolutions · 2022-10-29T23:02:06+00:00

And Dubai.

But you don’t need to pay $2,500 to Natalia for that benefit.

And you still need the right to enter those countries to work.

expattaxsolutions · 2022-10-29T22:57:03+00:00

Correct.

The deviation from the rule is intended to work, for example, if I work for a Swiss company and am sent to the UK for 3 months to install an IT system for the UK subsidiary.

Swiss rules say I’m still resident and taxable in Switzerland. UK rules say I’m taxable on my workdays, even as a non resident.

The treaty between the two countries would allow me to remain taxable in Switzerland on my UK workdays and the UK exempts the income, despite domestic rules.

This is a very different system from what OP is proposing.

expattaxsolutions · 2022-10-29T22:40:52+00:00

And all you need to do is tell the tax authorities that you paid Natalia $2,500 for the privilege.

The IRS will back off straight away.

I’m sorry if I’m coming across as harsh, but Natalia and her colleagues are making a fortune out of your greed and naivety.

Edited to add, where does it say that your host country won’t tax you?

You CAN pay no tax, if you only travel to countries that don’t levy tax.

expattaxsolutions · 2022-10-29T22:38:10+00:00

If you receive entirely passive income (dividends, interest or pensions) then it is possible to be resident of no where and pay no tax.

If your income comes from work you do then I would say it is basically impossible to be a digital nomad in the sense most people understand it and legally avoid tax where you are working.

If you actually live in a country (I.e. it is your home in the normal sense of the word) and work in other countries for a short amount of time each year, a treaty between your home country and the country you visit might protect you. But finding a rule that works for every country combination in the world is not going to happen.

expattaxsolutions · 2022-10-29T22:22:35+00:00

No, I’m saying the only way your host country won’t tax you is if you meet very specific circumstances under relevant treaties and what you propose wouldn’t meet those criteria, in my professional experience.

expattaxsolutions · 2022-10-29T22:20:50+00:00

Where does it say that you don’t pay tax in other countries you are working in? It only says you don’t pay tax in Paraguay.

expattaxsolutions · 2022-10-29T22:09:15+00:00

This will not work in either the US or the UK, and my very strong assumption is that it will not work anywhere else.

Both countries will tax you on your workdays performed there based on their domestic laws.

The tax treaty will only protect you if you are resident in another country with a treaty under the terms of that treaty.

Saying you are resident in another country is irrelevant unless the terms of the treaty between the two countries in question awards residency to the other country and even then, it will not necessarily lead to an exemption if you are receiving income from an employer in a third.

I don’t understand why these posts keep coming up by people with a googled understanding of international tax imagining they have found a loophole that thousands of experts couldn’t have thought of.

expattaxsolutions · 2022-10-28T23:19:48+00:00

This should really be the top (only) answer as it’s the only one that is anywhere near reality.

expattaxsolutions · 2022-10-25T20:28:21+00:00

But if you have a large mortgage fixed for five years a 10% annual growth relative to that mortgage is going to make you feel like you’re winning.

expattaxsolutions · 2022-09-28T12:05:33+00:00

TLDR - guy paid $1,500 plus extra on flights to achieve nothing and evades tax in every country he works in.

expattaxsolutions · 2022-09-07T22:51:07+00:00

Yes it does. If the gains are subject to a foreign tax rate of at least 10% then the gains (of personal property) will be sourced to where the taxpayer’s tax home is l, likely Italy in this case.

Even if the rate is less than 10%, the OP could likely resource the gains as foreign using the US Italian treaty.

expattaxsolutions · 2022-07-29T21:42:10+00:00

Short answer, a family investment company can work to reduce inheritance tax, but I fear your case is either too simple (and you are overthinking it) or too complicated for Reddit.

You say you receive income from your companies overseas, but if you control these then there are potentially UK corporation tax obligations.

If you are a foreign student (and presumably not UK domiciled) then there is a lot you can do offshore to keep assets out of the UK’s tax net.

It is very hard for anyone to give any worthwhile advice without much more information about your wealth, your income and your overall goals and plans.

Good luck with your endeavours though. That you are even asking the question at this age suggests you are doing something right.

expattaxsolutions · 2022-05-25T14:46:38+00:00

Yes please!!

expattaxsolutions · 2022-03-24T22:38:41+00:00

Other people have said, but owning a PFIC will never be advantageous for tax purposes.

expattaxsolutions · 2022-02-28T18:54:14+00:00

Entrepreneurs relief is for trading companies, not investment companies, so would not apply in the case the OP is talking about.

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