Personal tax planning

Delinquent returns and IRS notices

One of the top four priorities of the current IRS Commissioner is tax compliance. After several years when compliance was not a priority the IRS has again placed great emphasis on enforcement, citing abusive tax shelters and budget deficits as motivation.

We also provide US compliance services for US delinquent taxpayers enabling them to get back in the US tax system.

US Tax Solutions has answered IRS notices of all degrees of complexity, taking a holistic approach to tax liabilities. We can provide advice concerning a response to an IRS notice, reviewing your position, checking IRS calculations, and preparing a considered response, addressing the issues and minimizing your costs.

US owners of UK Limited Companies

Currently the UK imposes a corporate tax of 21% on profits of £300,000 with the tax rate increasing to 28% on profits over £1.5million. In addition, the National Insurance imposed on salaries from the company is 23% (employer and employee contribution). We work with the UK accountants to come up with a tax efficient method of compensation for the US shareholders (dividends, salary or a combination) from a US/UK perspective. We also offer guidance on the sale/closure of the business to maximize fully the UK taper relief tax of 10% on the sale/closure of the business.

Couples with dual nationality

Couples where one spouse is a US citizen and the other is a UK citizen may be in a position to take advantage of tax efficient UK products such as ISAs, Insurance and with profits bonds, without exposure to the onerous US tax imposed by the Passive Foreign Investment Company tax rules (PFIC). In addition, couples with dual nationalities can take advantage of the favourable US tax rates (15%) on dividend and capital gains income to reduce their overall tax burden.

Executive tax planning

US taxpayers working as executives in the UK are subject to a maximum 50% tax rate in the UK. We work with UK tax advisors to enable US executives to take advantage of UK products to reduce their UK and US liabilities.

For example: executives may be able to utilize UK venture capital trusts to reduce their UK tax liability, or to pay off their mortgages. We take a conservative approach in analyzing and recommending these strategies. Our main emphasis is to reduce the global tax rate or to create an asset from the foreign tax credits.

US Property

The purchase and subsequent sale of US property often has US income and state income tax consequences. Our practice can advise you on the tax implications of the transaction from a personal or business perspective. For personal owners, investors and business ventures we provide tax advice concerning entity structuring, anticipated tax liabilities during ownership and upon sale.

United Kingdom Finance Act of 2008

UK legislation now subjects most U.S. taxpayers in the UK to UK tax on their worldwide income unless a £30,000 annual charge is paid to the UK government to maintain “non-domicile” status. The actual legislation is more detailed and there is an exception to the charge. However, the result is most U.S. taxpayers residing in the UK can expect an income tax increase in their worldwide tax and increased compliance costs. U.S. Tax Solutions offers a review of your worldwide tax position with a view of lowering your worldwide tax burden and/or avoiding double taxation. This may ultimately result in reduced U.S. and UK compliance costs.

US Tax Solutions LLP offers an analysis of your tax situation to identify tax planning opportunities. We do NOT offer financial products to our clients; our role is to provide tax advice on how your tax situation may be improved.