The UK’s Chancellor of the Exchequer delivered his Spring Budget today to a rowdy House of Commons that had to be called to order before it had even properly started. Noting this is an election year, he painted a positive picture of the UK’s economy stating the UK had the lowest national debt in the G7, inflation had been reduced, and growth since 2010 under the Conservatives has been higher than every large European economy and the OBR expects growth to continue until 2027. The Chancellor wanted his policies to generate “more jobs, more investment and lower taxes”. He started his Budget by sa ..read more

Introduction The United States stands as one of only two countries in the world (Eritrea being the other) that assesses personal income tax based on citizenship as well as residency. This distinctive tax system subjects US citizens to taxation on their global income and gains, irrespective of their place of residence. Consequently, managing tax affairs becomes notably intricate for US citizens and residents abroad. We at USTAXFS, are experienced specialist tax advisers for US-connected individuals with international complexity. We provide consultancy and US and UK tax preparation services to i ..read more

This article aims to serve as your comprehensive guide to understanding the nuances of foreign trusts. Whether you’re a trustee, grantor, settlor, or beneficiary, we’re here to unravel the complexities and shed light on potential pitfalls and opportunities within the realm of cross-border trust taxation. Demystifying ‘US Person’ ClassificationBefore delving into the specifics of foreign trusts, it’s crucial to understand who falls under the umbrella of a ‘US person’ for tax purposes. In this context, a US person includes US citizens, green card holders, or individuals meeting the threshold of ..read more

The United States imposes an estate or succession tax on the transfer of specific US situs assets owned by a person on death, even if the person was neither a citizen nor a resident of the United States at death (aka a non-domiciliary). US situs assets owned at the decedent’s death that are subject to US estate tax include: US real estate Tangible property physically located in the United States such as automobiles, furnishings, jewelry, etc. (cash and currency are considered tangible personal property and will be taxable if located in the United States) Certain intangible property, such as s ..read more

The annual tax filing season commences today and we are delighted to summarize some important changes to 2023 tax year when compared to prior years. The most notable changes are: 1. The first page of Form 1040 will look slightly different than prior year. The filing status field has now moved below the taxpayer’s information section. It was the first section on last year’s Form 1040. 2. For 2023, the standard deduction amount has been increased to account for inflation. The amounts are: Single or Married filing separately – $13,850 (up from $12,950 for 2022) plus $1,850 for individuals at lea ..read more

The US tax year runs from January 1st to December 31st each year. For anyone subject to US tax systems, there are some of the deadlines and key dates for US tax filing that they need to be aware of throughout each tax period, wherever they are in the world. Below are the deadlines for the 2023 US tax year. January 16, 2024   Deadline for Individuals to pay Quarter 4 of 2023 Estimated Income Tax payment Income that does not have US tax withholding or cannot be offset using deductions or foreign tax credits may need to be estimated and paid by January 16, 2024 using Form 1040-ES. March 5, 2 ..read more

The complexities of US taxation, particularly Unrelated Business Taxable Income (UBTI), can deter European private equity firms looking to unlock the lucrative US pension funds market, but learning how to navigate them really is worth the effort. European PE is driven by a fiercely competitive marketplace and the US, home to about half of the world’s largest pension funds, is an enticing potential investment source for companies. Pension funds have moved on from investing solely in publicly listed assets to broadening their portfolios across investment classes, such as PE and venture capital ..read more

In Switzerland, Samichlaus, aka St. Nick, came to children this past night and brought them clementines and nuts. While we cannot transfer food through the internet, we have something almost as good – 2023 US year- end tax tips! This is something we have covered in the past, but like all good things, we have a few tweaks and updates this year. 1.       For those who haven’t filed the current year’s tax return by now, do so as soon as possible.  There are “failure to file” and “failure to pay” penalties, plus interest on the unpaid penalties! 2.     ..read more

According to the Institute for Fiscal Studies, UK tax levels are at their highest since records began 70 years ago. After the usual speculation in the press over the last week, we learned today from Chancellor Jeremy Hunt in his Autumn Statement mini-budget whether there would be any tax cuts. There were no proposed changes to Inheritance Tax despite comments in the press that there would be. This was picked up on by Rachel Reeves, the Shadow Chancellor, who asked whether this was a “decision delayed or a decision abandoned.” However, National Insurance rates were reduced which will represent ..read more

With rising life expectancies, it is possible that individuals will outlive their traditional retirement savings. A qualified longevity annuity contract (QLAC) provides a potential solution. What is a QLAC? A QLAC is a fixed deferred annuity, meaning it ensures a continuous stream of income from an agreed-upon start date. This guaranteed income stream is achieved by monthly payments from the QLAC based on the deposit amount in the QLAC, the percentage growth that the QLAC ensures explicitly, and the start date of the payments. Using money from a retirement account, such as a 401(k) or an indiv ..read more