United States
United States

Business or real estate investments in the US?

Live the British Dream (in America)
British people owning a business or a real estate property in the United States provides many financial and tax benefits. You just need to ensure that you pay the least amount of tax to the IRS.

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British paying Tax in US

If you are British, you will be taxed on the income that you generate in the US to the IRS. You also need to be aware that the IRS tax you on your worldwide income, not just the money you earn in the US.

There are many tax structures that you need to be aware of when moving or investing in the United States. Some of them are open to British but some are not, take care when reading tax-efficient literature from a Google search.
Finally, if you are married you will need to file a joint tax return to the IRS. This is unlike the UK where each person files a tax return to HMRC

It is important to start off on the right foot with the IRS. You will need to get an Individual Tax Identification Number (ITIN) for you to file 1040 tax returns to the IRS in America.

Make sure you plan. Moving to the US at the wrong time could mean that you must pay tax in both countries and pay the highest amounts of tax to both HMRC and the IRS

British paying Tax in US
FIRPTA Property Tax

FIRPTA Tax when selling US real estate property

Benefits of owning a business interest or real estate property investment in the US

There are many good reasons for British people to invest in the United States. Some of the key benefits are risk mitigation of currency or economic risks by having business interests in multiple locations. It is important to make as much money as possible from your business interests and your real estate property investments without paying lots of tax.

Benefit One - Currency exchange

British people that live or invest in the US, especially when it comes to business or real estate property may be able to take advantage of currency exchange movements over time. It is also important to hedge your risks if you are concerned that exchange rates act against you over time.

Benefit Two - Risk mitigation

British people are entrepreneurial. This has many upsides when investing in both the US and UK. Spreading investments across two countries may hedge against economic or political risks in either country. where there is a risk in one country there may be an opportunity in the other to make more money. There are several corporate tax structures to help you minimise taxes and risks on both business and real estate investment interests.

Benefit Three - Tax regimes

It is true that British people investing in the US will be subject to US tax (IRS) and potentially UK tax (HMRC). That said, there are many corporate tax-efficient structures that can help you reduce tax. Not just in the United States but also in the United Kingdom. Understanding transatlantic international tax law will help you identify the right solutions to minimise tax across the pond.

Liasing directly with tax officials, so you don’t have to

Liasing directly with tax officials, so you don’t have to

Getting hold of HMRC or the IRS can be a difficult task. It gets worse when they talk technically. We will remove the stress and headaches as we can speak their language and your language too.

Liaising directly with HMRC on your behalf

  • We act as your HMRC agent
  • We have an HMRC dedicated line
  • We take away your stress

Handling your tax return & contact with IRS

  • We act as your IRS agent
  • We have an IRS dedicated line
  • We take away your stress
We provide transatlantic tax advice to Americans and British that have business or real estate investment interests.

We provide transatlantic tax advice to Americans and British that have business or real estate investment interests.

It is one thing to build wealth but another to keep the money that you deserve without giving it away to either the IRS or HMRC in tax.
We want to work with you to understands your long term objectives and create a wealth structure that is tax-efficient, so you can enjoy more of what you earn.
It is one thing to be tax-efficient in the UK. It is another thing to be tax-efficient in the US. It is another thing altogether to be tax-efficient across the Atlantic.

Frequently Asked Questions

These are some of the questions that we are asked about tax filing to the IRS and HMRC

Where do I pay the most tax, in the UK or the US?

Typically the tax rates in the UK are higher and the personal allowance (standard deductions) are not as high as they are in the US.

Do I pay double tax if I live in the UK but have income in the US?

Yes and no. You always need to pay tax in the country that you generate an income. You will have to declare worldwide income to HMRC only if you are resident. Otherwise you only need to declare the income that is generated in the UK.

Do I need to file a UK tax return to HMRC?

Yes, if you are resident in the UK or have UK assets that generate taxable income. American citizens will also need to submit a 1040 tax return to the IRS.

Is it a good idea to file my UK tax return early to HMRC?

Yes and for two reasons. Firstly there is a good chance that you have overpaid tax if paid at source in the UK. Secondly, it is the best way to understand how much tax you need to pay by 31st January.

When do I need to file a UK tax return to HMRC?

Tax returns need to be submitted by 31st January with the payment of tax.

When does the tax year run from and until?

The UK tax system runs from 6th April to 5th April the following year

Do you need to pay FIRPTA tax if you sell a US real estate property investment?

The tax laws surrounding the sale of British-owned US real-estate investments can be complicated. Some British sellers and even some US citizens may be subject to a 15% FIRPTA tax, levied by the United States government.

But we can help. We might be able to save your thousands or even hundreds of thousands of dollars in FIRPTA taxes. In many cases, we can even help you avoid paying the FIRPTA altogether. We take a look at your transactions to determine whether or not you are exempt from this tax and identify other ways to help you become more tax-efficient when making US-based investments. Give us a call before you sell your US-based property to learn more.

Where do I pay the most tax, in the UK or the US?

Typically the tax rates in the UK are higher and the personal allowance (standard deductions) are not as high as they are in the US.

I have a UK company. Do I need to declare this income to the IRS?

Yes, all income that is personally earned or earned via a company needs to be reported to the IRS.

Do I pay double tax if I live in the US but have income in the UK?

UK tax liabilities will occur where you have income generated assets. UK tax will be paid on a credit provided by the IRS to ensure you are not taxed twice.

Do I need to file a tax return to the IRS?

Yes, if you are a US citizen or are resident in the US or if you have business or investments in the UK even though you are not resident there.

Is it a good idea to file my US tax return early to the IRS?

Yes and for two reasons. Firstly there is a good chance that you have overpaid tax if paid at source in the US. Secondly, it is the best way to understand how much tax you need to pay by 15th April.

When do I need to file a US tax return to the IRS?

US citizens and residents need to file by 15th April. Non residents get an automatic extension to the 15th June.

When does the tax year run from and until?

The US tax system runs from 1st January to 31st December.

Need a little help with your taxes? We’re ready to help.

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