US & UK Tax News Archives - Xerxes Associates LLP

UK Residency Rules for Americans: How Visa Status Impacts Your Tax Obligations

For many Americans living and working in the United Kingdom, understanding how UK residency rules affect taxation is one of the most important — yet most misunderstood — aspects of financial planning. Whether you’ve relocated for work, study, or family reasons, your visa type and duration of stay can significantly influence how both HMRC and the IRS treat your income and assets. At Xerxes Associates LLP, the focus is on helping US expats interpret these rules correctly to stay compliant while minimising unnecessary tax exposure.

The UK operates under a Statutory Residence Test (SRT) — a framework introduced by HMRC to determine whether an individual is considered a UK tax resident for a given tax year. The SRT takes into account several key factors, including the number of days spent in the UK, the strength of your ties (such as family, accommodation, or employment), and your previous residency history. Understanding how these elements interact is essential because once you qualify as a UK tax resident, you are generally liable for tax on your worldwide income and gains.

However, most US citizens in the UK remain subject to dual tax exposure, as the United States taxes its citizens on a worldwide basis regardless of where they live. This means that even if your income is fully taxed in the UK, you may still have reporting obligations to the IRS, including the need to file annual tax returns, FBAR (Foreign Bank Account Report) disclosures, and possibly FATCA-related documentation. Fortunately, the US-UK Double Taxation Treaty exists to prevent the same income from being taxed twice, provided the filings are managed correctly and consistently.

Your visa category plays a direct role in determining how residency is applied. For example, short-term visa holders — such as students, seasonal workers, or visiting specialists — may spend part of the year in the UK without triggering full residency, depending on the number of days present and ties maintained. Conversely, those on skilled worker or family visas often meet the SRT threshold quickly, making them liable for full UK tax obligations from their first year. In such cases, understanding the split-year treatment provisions is critical, as they allow part of the year to be taxed as non-resident and part as resident, avoiding unnecessary tax overlap.

Another important concept for Americans in the UK is the domicile distinction. While residency determines where you pay tax, domicile determines how your foreign income and gains are treated. Non-domiciled individuals may be eligible to claim the remittance basis, which means they are only taxed in the UK on income brought into the country. However, this claim must be made carefully, as it may affect eligibility for certain allowances and could lead to a remittance basis charge after several years of UK residence.

For high-net-worth individuals and business owners, visa planning and tax residency should be considered long before relocating. Xerxes Associates LLP regularly assists clients in structuring their affairs efficiently — from managing US and UK payroll reporting to ensuring treaty reliefs are claimed properly. The firm’s dual-qualified team can also advise on how residency changes impact pension contributions, capital gains, property ownership, and investment income on both sides of the Atlantic.

Given that both HMRC and the IRS are expanding their information-sharing networks under FATCA and the Common Reporting Standard (CRS), maintaining accurate and transparent reporting has never been more important. Failure to align US and UK filings can lead to double taxation, loss of treaty benefits, or penalties for non-disclosure.

If you’re an American professional, entrepreneur, or retiree navigating life in the UK, expert cross-border guidance is essential. The rules surrounding tax residency, visa status, and domicile can be intricate, but with the right advice, they can also be managed strategically to your advantage.

To speak with a dual-qualified tax adviser about your specific circumstances, visit www.xerxesassociatesllp.com and arrange a confidential consultation with the expatriate tax team.

Cryptocurrency Taxation for US Expats in the UK: Latest HMRC & IRS Updates

As cryptocurrency continues to evolve from a niche investment to a mainstream financial asset, regulatory bodies across the world are tightening their grip on how it is reported and taxed. For US citizens living in the UK, understanding the rules around crypto taxation is particularly important, as they are subject to both HMRC and IRS reporting obligations. With tax authorities sharing more data than ever before, non-compliance is no longer an option. The team at Xerxes Associates LLP specialises in helping American expatriates navigate this complex cross-border tax environment, ensuring their crypto portfolios remain compliant on both sides of the Atlantic.

Cryptocurrency is treated differently in the US and UK, but both tax systems agree on one thing — it is not “currency” in the traditional sense. The HMRC classifies digital assets as property, meaning capital gains tax applies whenever you sell, trade, or otherwise dispose of your crypto. This includes converting tokens into fiat, swapping one coin for another, or even using cryptocurrency to pay for goods and services. Each of these events can trigger a taxable gain or loss based on the market value at the time of the transaction.

For US taxpayers, the situation is even more complex. Under IRS rules, American citizens must report their worldwide income and capital gains regardless of where they live. This means that crypto gains realised while residing in the UK must be reported both to HMRC and the IRS. The United States has a unique taxation model based on citizenship rather than residency, which can lead to dual reporting requirements for expats. However, relief mechanisms such as the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit (FTC), and the US-UK Double Taxation Treaty can help to offset or eliminate double taxation when managed correctly.

Recent updates from both tax authorities highlight the growing seriousness with which crypto is being treated. The IRS has included a dedicated question about digital assets on Form 1040, and exchanges are now required to issue information reports under expanded 1099-K regulations. Meanwhile, the UK has introduced enhanced compliance measures under the Cryptoasset Reporting Framework (CARF), aligning with the OECD’s global standards for tax transparency. Beginning in 2026, UK-based exchanges will be required to share user data automatically with tax authorities worldwide, including the United States.

Given these developments, it is crucial for US expats in the UK to maintain accurate records of all crypto transactions. This includes the date of purchase, sale value, exchange fees, and wallet addresses. HMRC expects clear documentation, and the IRS has made it clear that failure to disclose crypto activity could be treated as wilful tax evasion.

Xerxes Associates LLP advises clients to take a proactive approach by conducting an annual crypto tax review. By consolidating data across wallets and exchanges, calculating cost basis accurately, and applying available treaty reliefs, expats can stay compliant while minimising unnecessary tax liabilities. The firm’s dual-qualified tax professionals are experienced in preparing both US and UK returns, ensuring that every filing reflects consistent and defensible information.

In 2025, both HMRC and the IRS are investing in blockchain analytics tools to identify unreported assets. This marks a new phase of cross-border cooperation and enforcement. For Americans living in London or elsewhere in the UK, this means transparency is not optional — it is a legal necessity. Working with a firm that understands both systems is no longer just a convenience, but a compliance safeguard.

To learn more about how Xerxes Associates LLP assists US citizens in the UK with cryptocurrency taxation, visit www.xerxesassociatesllp.com and schedule a consultation with one of their cross-border tax specialists.

Understanding the Tax Implications of US Retirement Accounts for Expats in the UK

Moving from the United States to the United Kingdom can be exciting, but for many American expats, the financial transition is complicated. One of the most common concerns is how US-based retirement accounts – such as 401(k)s, IRAs, and Roth IRAs – are treated once you become a UK resident. Failure to understand the rules can lead to unexpected tax bills, double taxation, or even penalties from the IRS or HMRC.

The first challenge for US expats in the UK is the concept of dual taxation. Both the United States and the United Kingdom tax their residents on worldwide income. This means that distributions fraom a 401(k) or IRA could, in theory, be taxed twice – once by the IRS and again by HMRC. Fortunately, the US–UK Tax Treaty helps mitigate this issue. The treaty generally ensures that distributions are only taxed in one jurisdiction, but the rules can be complex and depend on your specific situation.

Another consideration is the timing of withdrawals. In the US, early withdrawals from retirement accounts typically attract a penalty in addition to ordinary income tax. For expats living in the UK, the situation can become even more complex. HMRC does not always recognise the same penalty rules, and withdrawals may be taxed differently in the UK depending on the type of account. For example, Roth IRAs, which are tax-free in the US under certain conditions, may not always enjoy the same treatment in the UK.

Contributions are another area where expats face challenges. Once you move to the UK, continuing to contribute to US retirement accounts may not always be straightforward. US citizens must consider IRS rules about contributions while living abroad, and the UK tax system may not provide the same relief for contributions that would apply if you were still resident in the United States. In some cases, it may be more tax-efficient to explore UK pension options while maintaining existing US accounts without new contributions.

Currency fluctuations also play an important role. Because retirement accounts are denominated in US dollars, the value of withdrawals can vary significantly when converted into pounds. This introduces an extra layer of financial planning for US expats who must balance their retirement needs with the unpredictability of foreign exchange markets.

For many expats, professional advice is essential. The overlap between IRS rules, HMRC requirements, and the tax treaty means that attempting to navigate retirement account taxation alone can be risky. The penalties for mistakes are steep, ranging from unexpected tax bills to fines for non-compliance with FBAR or FATCA reporting obligations. Xerxes Associates LLP specialises in helping US expats in the UK make sense of these rules, avoid double taxation, and optimise their retirement income strategy.

In short, US expats in the UK cannot afford to take a “wait and see” approach when it comes to their retirement accounts. The interplay between two tax systems makes careful planning a necessity. With the right advice, however, it is possible to enjoy the benefits of retirement savings without being caught out by international tax complications.

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Top 5 Common Mistakes US Expats Make When Filing UK Taxes

Every year, thousands of US expats living in the UK face the daunting task of filing taxes in two countries. While the US is one of the few countries that taxes its citizens on worldwide income regardless of where they live, the UK also requires residents to report their income. This dual system creates a complicated environment for expats, and it is easy to make mistakes that lead to penalties, double taxation, or lost opportunities for tax efficiency.

One of the most common mistakes is misunderstanding residency rules. Simply living in the UK does not always mean you are automatically treated as a UK tax resident. The Statutory Residence Test determines residency status and considers factors such as time spent in the UK, ties to the country, and employment circumstances. Misinterpreting your residency can result in either underreporting or overreporting income, both of which carry risks.

Another frequent error is failing to take full advantage of the US–UK Tax Treaty. This treaty exists to prevent double taxation, but it is not automatic. Expats must file the correct forms to claim treaty benefits. Missing this step can mean paying more tax than necessary, as both the IRS and HMRC may claim the right to tax the same income.

A third issue is inadequate reporting of foreign bank accounts and assets. US citizens are subject to strict FBAR and FATCA reporting requirements, which apply even if the accounts are in the UK and used for day-to-day living. Many expats mistakenly believe these rules only apply to offshore tax havens, but in reality, they apply to all foreign accounts above certain thresholds. Non-compliance carries heavy penalties.

Another mistake is poor handling of pensions. UK pensions are treated differently under IRS rules compared to UK rules. For example, contributions to a UK pension scheme may be tax-advantaged in the UK but could still be taxable in the US unless correctly structured under treaty provisions. Mismanagement of pensions often leads to double taxation or missed reliefs.

Finally, many expats simply assume they can handle their tax filings without professional help. The combination of IRS regulations, HMRC rules, treaty provisions, and reporting requirements is complex. Even minor oversights can result in major financial consequences. Professional firms such as Xerxes Associates LLP provide tailored advice that ensures compliance while identifying opportunities for tax efficiency.

The reality is that living as a US expat in the UK comes with a unique set of tax responsibilities. By avoiding these common mistakes and seeking professional guidance, expats can ensure compliance, reduce their tax burden, and avoid unnecessary stress. Taxes do not need to be an obstacle to enjoying life abroad, but they do require careful attention.

>>> Dual Taxation & US–UK Tax Treaty

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Avoiding Fines and Penalties for Late Submissions

It’s far cheaper and easier to stay compliant than to deal with the cost, stress, and potential legal trouble of fines. With expert guidance from Xerxes Associates LLP, you can ensure every box is ticked, every form is submitted on time, and you avoid the headache of late penalties entirely.

One of the biggest risks for US expats living in the UK is falling behind on tax filing deadlines. Whether it’s your US return, FBAR, or UK self-assessment, missing a deadline can result in serious fines, interest charges, and even IRS scrutiny.

Here’s how to stay ahead of the curve and protect yourself from penalties.

1. Know Your Filing Deadlines

Some key deadlines to remember:

US Tax Return (Form 1040)
Due April 15 — with an automatic extension to June 15 for expats, and an optional extension to October 15.
FBAR (FinCEN Form 114)
Due April 15 with an automatic extension to October 15. Must be filed online, separately from your tax return.
FATCA (Form 8938)
Attached to your Form 1040 if your foreign assets exceed the reporting threshold.
UK Self-Assessment
Paper returns: October 31
Online returns: January 31
Payment deadline: January 31

2. Automate Reminders and Work Early

Don’t leave your filings until the last minute. The closer it gets to deadlines, the harder it is to access professional help or get clarification from tax authorities. Set calendar alerts and consider using tax software or a cloud-based client portal to track your filings.

3. Watch for Penalties

The IRS and HMRC both impose hefty penalties for late or inaccurate submissions:

IRS late filing fee: Starting at $435 for 60+ days late
FBAR penalties: Up to $10,000 per non-wilful violation
HMRC penalties: £100 for late submission, plus interest on unpaid taxes

These can often be avoided by simply staying organised and filing on time.

4. Fix Mistakes Promptly

If you realise you’ve missed a filing or submitted something incorrect, don’t panic. Voluntary disclosure options exist both in the US and UK. Acting quickly can significantly reduce or eliminate fines.

5. Get Professional Help

A dual-qualified tax advisor can manage your US and UK filings together, reducing your admin time and ensuring nothing is missed. Xerxes Associates LLP offers streamlined filing services, reminders, and expert compliance advice for US expats living in the UK.

Get in Touch

For those seeking guidance on taxation or other expatriate tax matters, Xerxes Associates LLP offers consultations to discuss individual needs and circumstances. To learn more about their services or to schedule a consultation, visit their contact page.

What US Expats in the UK Can Do to Stay Tax Efficient

Staying tax efficient isn’t just about saving money — it’s about reducing stress and avoiding legal risk. With the right planning and expert advice, US expats in the UK can enjoy financial peace of mind, focus on building their lives abroad, and stay in good standing with both HMRC and the IRS.

Living in the UK as a US expat brings exciting opportunities — but it also brings complex tax obligations. With both the IRS and HMRC expecting accurate reporting, staying tax efficient is essential if you want to avoid overpaying or triggering audits.

Fortunately, with the right strategy, US expats in the UK can reduce their tax burden and maximise their earnings legally and safely.

Understand Your Dual Tax Obligations

As a US citizen or Green Card holder, you’re required to file a US tax return no matter where you live — even if all your income is earned in the UK. At the same time, you may also be liable to pay UK tax.

The good news? There are several ways to avoid double taxation:

Foreign Earned Income Exclusion (FEIE)
You may be able to exclude up to around $120,000 (adjusted annually) of foreign income from your US taxes if you meet either the Physical Presence Test or Bona Fide Residence Test.
Foreign Tax Credit (FTC)
This allows you to offset the tax you pay in the UK against your US tax liability, dollar for dollar.
US–UK Tax Treaty
The treaty helps resolve many overlaps between the two systems, especially for pensions, dividends, and social security.

Make Use of UK Tax Reliefs Too

UK tax laws come with their own set of reliefs and allowances that expats can use to stay tax efficient:

ISA accounts (tax-free in the UK, but not recognised by the IRS)
Capital gains tax exemptions
Marriage allowance and Personal Allowance for UK tax residents

Speak to a cross-border tax expert before using these, as some UK reliefs may still be taxable under US law.

Avoid Common Pitfalls

FBAR and FATCA non-compliance: You must report non-US bank accounts and financial assets if they exceed certain thresholds.
Overlooking reporting for pensions and ISAs: The IRS treats these differently than HMRC.
Ignoring state tax obligations: Some US states (e.g., California) tax former residents even after they move abroad.

Work With a Dual Tax Specialist

The best way to stay tax efficient is to work with a tax advisor who understands both US and UK systems. At Xerxes Associates LLP, we specialise in helping US expats optimise their finances, stay compliant, and avoid costly mistakes.

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Dual UK-US Tax in 2025

Dual UK-US Tax in 2025 – New IRS and HMRC Changes Every American in Britain Needs to Understand

Living between two tax systems is no small task. For Americans in the UK — whether you’re a permanent resident, dual national, or just here on assignment — navigating dual UK-US tax obligations in 2025 is more complex than ever. Recent updates from both HMRC and the IRS have introduced small but critical shifts in filing expectations, credit claims, and income treatment, which could have major effects on your tax bill if not handled correctly.

At Xerxes Associates LLP, we specialise in helping US citizens, green card holders, and UK-resident dual nationals manage this balancing act. With the UK Spring Budget 2025 introducing changes to capital gains treatment and the US maintaining its global tax policy, many taxpayers are left confused about where to start and how to avoid double taxation.

One of the most common misconceptions among US expats in the UK is that filing taxes in the UK alone is enough. Unfortunately, the US is one of the only countries in the world that taxes its citizens on worldwide income, no matter where they live. This means that even if you pay UK tax on your earnings, dividends, or pensions, you still have to file with the IRS every year — and declare those same income sources.

The good news is that the US-UK tax treaty is designed to prevent double taxation. However, claiming foreign tax credits and the Foreign Earned Income Exclusion (FEIE) requires precision, correct elections, and up-to-date documentation. In 2025, the FEIE threshold has risen slightly due to inflation adjustments, but many Americans in London still earn above the exclusion limit — especially once housing and bonuses are factored in.

Changes to HMRC’s treatment of non-domiciled residents, particularly regarding remittance rules and overseas income, add another layer of complexity. Dual residents who previously enjoyed the remittance basis may now find themselves unexpectedly exposed to UK taxation on foreign income — which then needs to be reconciled on the US side to avoid duplicate payments.

Another emerging issue is how pension contributions and distributions are treated under each tax system. In the UK, certain employer pension contributions and ISAs are tax-advantaged, but in the eyes of the IRS, they may be fully taxable or require detailed reporting on Form 3520 and 3520-A. Mistakes in this area are increasingly flagged during audits.

Cryptocurrency is also on the radar. Both HMRC and the IRS have clarified their stance on digital asset reporting, and new 2025 guidance suggests more aggressive enforcement. If you’ve held or traded crypto while living in the UK, both tax agencies now expect clear, transparent declarations — and inconsistencies between the two filings are increasingly leading to audits.

Perhaps the biggest risk in dual taxation is overlooking one system while focusing on the other. We’ve seen clients pay unnecessary penalties, lose out on tax credits, or miss out on treaty benefits simply because their accountants lacked cross-border expertise. This is where Xerxes Associates LLP makes a tangible difference. We don’t just file forms — we coordinate both your UK and US filings to ensure accuracy, reduce tax liability, and keep you fully compliant across jurisdictions.

Whether you’re a first-time filer, a long-time resident, or someone returning to the UK after years abroad, the dual tax landscape in 2025 demands clarity, strategy, and expertise. With new rules, changing thresholds, and increasing enforcement from both HMRC and the IRS, now is the time to get your international tax affairs in order.

At Xerxes Associates LLP, we help you turn confusion into confidence — and compliance into peace of mind.

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IRS Tightens the Screws on Foreign Account Reporting

The US Internal Revenue Service (IRS) has significantly stepped up its enforcement around foreign bank account reporting in 2025, putting many unsuspecting US expats in the UK under increased scrutiny. With growing data-sharing agreements and more sophisticated audit tools, those who hold accounts in the UK or offshore jurisdictions must now tread carefully or risk severe financial penalties.

If you’re a US citizen or green card holder residing in the UK, the chances are high that you fall under the reporting obligations for FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act). Even if you haven’t lived in the US for years, your global financial footprint remains of interest to the IRS. In fact, many dual residents are unaware that holding more than $10,000 across one or multiple non-US accounts triggers a mandatory FBAR filing — a rule that hasn’t changed but is now being enforced more aggressively.

The penalties for failing to file FBARs can be staggering. In 2025, fines range from $10,000 per unreported account for non-willful violations, to up to 50% of the account balance for willful non-compliance. These are not theoretical risks — the IRS has already launched high-profile enforcement campaigns in partnership with HMRC and European tax authorities to identify underreporting.

At Xerxes Associates LLP, we’ve seen a notable uptick in enquiries from US-connected individuals caught off guard by these requirements. Many assumed that keeping money in UK ISAs, investment portfolios, or even basic current accounts didn’t fall under the FBAR or FATCA radar — but they do. The IRS requires detailed reporting, not only of bank balances but also of account ownership, access rights, and financial interests in trusts and foreign entities.

FATCA, meanwhile, brings a separate but related layer of complexity. Most US expats must file Form 8938, which covers broader financial assets than FBAR and has different thresholds depending on marital status and residence. While FBAR is submitted to FinCEN, Form 8938 is attached to your federal tax return — and failure to file can lead to an additional $10,000 penalty plus interest and potential audits.

2025 also marks a renewed focus by the IRS on compliance gaps in high-value jurisdictions like London, Zurich, and Singapore. Automated data exchanges under FATCA and CRS (Common Reporting Standard) mean that even previously undisclosed accounts are now easily traceable. Financial institutions are obliged to report directly to the IRS, leaving little room for error or omission.

If you’re unsure whether you’ve filed the correct forms or whether you’ve been compliant in recent years, it’s not too late. Xerxes Associates LLP offers confidential reviews and helps clients enter the IRS Streamlined Filing Compliance Procedures — a penalty-free amnesty program for non-willful offenders. We also assist in reconstructing past years’ reports, communicating with both the IRS and HMRC, and protecting clients from avoidable penalties.

The bottom line is simple: FBAR and FATCA compliance is no longer optional or low-risk. As an American abroad, your financial activities in the UK and beyond are reportable under US law, and 2025 is the year the IRS is proving it means business. Let Xerxes Associates LLP help you bring clarity and confidence to your compliance.

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Frequently Asked Questions – Xerxes Associates LLP

Welcome to the FAQ section for Xerxes Associates LLP, a leading UK-based tax advisory firm specialising in US and UK cross-border tax services. Whether you’re a US expat living in the UK, a dual citizen, or a UK resident with American income ties, our expert team is here to help. Below, we address some of the most common questions our clients ask, with a focus on tax regulations and reporting requirements as of 2025.

Do I still need to file a US tax return if I live in the UK?

Yes. As of 2025, all US citizens and green card holders are required to file a US tax return annually, regardless of where they live. This obligation applies even if you pay tax in the UK. At Xerxes Associates LLP, we specialise in helping US expats file accurate returns while maximising available exclusions and credits such as the Foreign Earned Income Exclusion and Foreign Tax Credit to avoid double taxation.

How does the US/UK Tax Treaty impact my filing obligations?

The US-UK Double Taxation Treaty allows taxpayers to avoid being taxed twice on the same income. However, it doesn’t eliminate your obligation to file tax returns in both jurisdictions. Our US Tax Advisory and UK Tax Advisory services ensure that the treaty is applied correctly to your personal financial situation.

What is FATCA and do I need to comply with it in 2025?

Yes, FATCA (Foreign Account Tax Compliance Act) remains in full effect in 2025. If you are a US person living in the UK with foreign financial accounts that exceed certain thresholds, you must report those accounts to the IRS using Form 8938. Additionally, banks in the UK are required to report your account information to the US government. Our US Tax Advisory team ensures full FATCA compliance.

Do I need to file an FBAR (Foreign Bank Account Report)?

If you are a US taxpayer with combined foreign accounts exceeding $10,000 at any point in the year, you are required to file an FBAR (FinCEN Form 114). This applies even if the accounts are jointly held or the funds are not yours personally. We assist with accurate FBAR filings as part of our comprehensive cross-border tax service.

Can I be taxed twice on the same income?

In most cases, no. With correct use of the US-UK Double Taxation Treaty, Foreign Tax Credit, and relevant exclusions, we can help you legally reduce or eliminate double taxation. At Xerxes Associates LLP, we create customised solutions to protect your global income from unnecessary tax exposure.

What are the UK tax residency rules in 2025?

The Statutory Residence Test (SRT) remains the main method for determining UK tax residency. It considers the number of days spent in the UK, ties to the country, and employment status. If you’re unsure about your UK residency status, our UK Tax Advisory team can perform a residency analysis and help you understand your obligations under HMRC guidelines.

Is my UK income taxable in the US?

Yes. US citizens are taxed on worldwide income, including salaries, pensions, dividends, and rental income from the UK. However, we can help you claim foreign tax credits or exclusions so that you are not taxed twice. For a full strategy review, explore our US Tax Advisory services.

How do you help with late tax filings?

We provide assistance with late or non-compliant tax filings, including streamlined filing procedures where applicable. If you’ve missed previous filings for your US tax return, FATCA, or FBAR, our team can help you bring your filings up to date without incurring unnecessary penalties. Visit Who We Help to see how we’ve helped clients in similar situations.

Do I need to report my UK pension or ISA to the IRS?

Yes. In 2025, UK pensions and Individual Savings Accounts (ISAs) must be reported on your US tax return. These accounts are often treated differently under IRS rules, and incorrect reporting can trigger audits or penalties. At Xerxes Associates LLP, we ensure that all accounts are reported correctly and in line with the latest US tax laws.

How do I declare a property I own in the UK?

If you’re a US citizen or resident and own UK property, you may need to report rental income, capital gains, or foreign property ownership depending on how the asset is used. Our team can help you navigate property tax rules under both HMRC and IRS jurisdictions. We also provide UK Tax Advisory services for local compliance.

What support do you offer for US taxpayers moving to the UK in 2025?

If you’re relocating to the UK, it’s essential to plan your move with tax implications in mind. We offer pre-arrival planning to help you optimise residency status, investment structures, and income flows. Start with a confidential consultation and learn how our tailored strategies can simplify your transition.

How are your services different from other tax firms?

We are one of the few UK-based tax firms that specialises exclusively in UK and US cross-border tax advisory. Unlike general accounting firms, we provide a focused, high-level service to individuals navigating the complexities of dual taxation. Read more about our approach on the About Us page.

Who do you typically help?

Our clients include:

US expats in the UK
UK residents with US filing obligations
Entrepreneurs and business owners with dual tax exposure
High-net-worth individuals with international investments
Dual citizens navigating FATCA and FBAR

To see specific examples of how we’ve supported our clients, visit our Who We Help page.

How can I get started?

We offer a clear, step-by-step process starting with an initial consultation. Once we assess your needs, we prepare a tailored engagement plan outlining key dates, requirements, and deliverables. To begin, contact us through the Contact Us page and one of our advisors will be in touch promptly.

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What USA Expats Should Look Out for When Appointing a US & UK Tax Specialist in the UK

For American expats living in the UK, managing cross-border tax obligations can be a complex and overwhelming task. With tax authorities in both the United States and the United Kingdom requiring compliance, it is essential to work with a firm that understands the nuances of both jurisdictions. At Xerxes Associates LLP, we specialise in supporting US expatriates through the intricacies of dual tax reporting, offering expert advice grounded in UK and US legislation.

But how do you choose the right advisor? What should you look for in a transatlantic tax specialist? This article will guide you through the critical considerations when selecting a trusted tax professional for your cross-border financial needs.

Why Dual Expertise Matters for US Expats

As a US citizen or green card holder living abroad, you remain obligated to file annual tax returns with the IRS regardless of your country of residence. This includes declaring worldwide income, foreign bank accounts, investments, and pensions. Meanwhile, your UK residency status may also trigger UK tax obligations.

This means you need a firm that is not only fluent in US federal tax laws, but also fully competent in UK tax planning, residence rules, and HMRC reporting. At Xerxes Associates LLP, we are proud to offer fully integrated UK and US tax services under one roof.

Understanding the Consequences of Inaccurate Cross-Border Tax Filing

Hiring an advisor who lacks experience in both jurisdictions could lead to:

Double taxation
Missed foreign tax credits or exclusions
Penalties for non-disclosure (such as FATCA or FBAR violations)
Compromised immigration status or delays in visa applications
IRS audits or UK HMRC inquiries

The US Tax Advisory service provided by Xerxes Associates LLP helps mitigate these risks by ensuring accurate reporting and proactive tax planning, no matter how complex your financial situation may be.

Key Factors to Consider When Choosing a US/UK Tax Specialist

There are several factors to consider when appointing a tax advisor for your expatriate needs. Choosing a firm that offers expertise, transparency, and ongoing support is essential.

Here’s what you should look for:

Bilateral Tax Knowledge: The advisor must have up-to-date knowledge of both US and UK tax codes, including the latest developments from the IRS and HMRC.
Experience with FATCA & FBAR: Filing requirements for foreign assets are non-negotiable. An advisor must be able to accurately prepare FATCA and FBAR reports.
Treaty Application Experience: Your advisor should be able to utilise provisions in the US/UK Double Taxation Treaty to prevent tax duplication.
Client Communication: Look for clear, jargon-free communication and a commitment to explaining your obligations in understandable terms.
Track Record: Choose a firm with proven results in helping US expats reduce their tax burdens and maintain compliance in both countries.

At Xerxes Associates LLP, we are trusted by professionals, entrepreneurs, and high-net-worth individuals who require bespoke international tax advice.

The Importance of Personalised Tax Planning

No two expatriate situations are the same. Whether you’re a salaried employee, self-employed, receiving US-based pensions, or investing in UK property, your tax filing obligations will vary. A one-size-fits-all solution simply doesn’t work.

Our team at Xerxes Associates LLP offers personalised tax planning that addresses your long-term goals—whether they involve returning to the US, applying for UK permanent residency, or managing cross-border investments. We take a holistic view of your financial picture to ensure tax efficiency and legal compliance across both countries.

Working with a Fully Regulated UK-Based Tax Firm

As a UK-based firm, Xerxes Associates LLP operates under UK regulatory standards, providing peace of mind for clients who value transparency, confidentiality, and professionalism. All our work aligns with guidelines from HMRC and the IRS, and we stay updated on regulatory changes that may affect American expats.

Our firm is focused on the US/UK niche. Visit our Who We Help section to explore real-world examples of clients who have benefited from our dual-tax expertise.

Common Mistakes US Expats Make Without Proper Tax Guidance

Without the right guidance, US expats in the UK frequently make avoidable mistakes such as:

Failing to file a US return due to living abroad
Ignoring foreign bank account reporting (FBAR)
Misunderstanding the UK remittance basis
Paying tax twice on the same income
Forgetting to report UK pensions and ISAs on US returns

Our experienced team helps you avoid these costly errors. We also assist clients with late filing issues or resolving past non-compliance through IRS amnesty programs—services outlined in our dedicated US Tax Advisory section.

Begin Your Journey with Confidence

If you are a US expat living in the UK—or planning your move—it’s never too early to speak to a dual-qualified advisor. At Xerxes Associates LLP, we offer a comprehensive approach to managing your US and UK tax affairs, allowing you to focus on your career, family, and long-term plans without unnecessary tax complications.

Visit our Contact page to request a confidential consultation and learn how we can support your specific tax situation.

UK Residency Rules for Americans: How Visa Status Impacts Your Tax Obligations

Cryptocurrency Taxation for US Expats in the UK: Latest HMRC & IRS Updates

Understanding the Tax Implications of US Retirement Accounts for Expats in the UK

Top 5 Common Mistakes US Expats Make When Filing UK Taxes

Avoiding Fines and Penalties for Late Submissions

1. Know Your Filing Deadlines

2. Automate Reminders and Work Early

3. Watch for Penalties

4. Fix Mistakes Promptly

5. Get Professional Help

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What US Expats in the UK Can Do to Stay Tax Efficient

Understand Your Dual Tax Obligations

Make Use of UK Tax Reliefs Too

Avoid Common Pitfalls

Work With a Dual Tax Specialist

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Dual UK-US Tax in 2025

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IRS Tightens the Screws on Foreign Account Reporting

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Frequently Asked Questions – Xerxes Associates LLP

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What USA Expats Should Look Out for When Appointing a US & UK Tax Specialist in the UK

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