Moving to the UK from the US? Three key tax and legal points to spot

Insight

09.06.2026

Many US people consider moving to the UK, given the close cultural and economic ties between the two countries. For individuals considering such a move, it is important to understand how UK rules may affect their finances and estate planning. Based on our experience advising US clients, here are three essential considerations:

UK tax residence – the Statutory Residence Test

For UK income tax and capital gains tax, your exposure depends on whether you are 'resident' under the Statutory Residence Test (SRT). This considers several factors, including days spent in the UK, connections to the UK, whether and where you do full-time work, and the location of your home(s).

Depending on the circumstances, spending as few as 16 days in the UK in a tax year (6 April to 5 April) may result in UK tax residence. Early advice before arriving in the UK can help individuals understand their tax exposure and plan accordingly.

The Foreign Income and Gains (FIG) regime for new arrivals

From April 2025, the UK introduced the Foreign Income and Gains (FIG) regime for individuals moving to the UK after living abroad for at least 10 years.

This regime allows qualifying newcomers to exclude most foreign income and gains from UK tax for up to four consecutive years, even if the funds are brought into the UK. It is a valuable but time-limited opportunity, so it is important to consider how individuals may benefit from it before arriving in the UK.

US trusts and UK tax – crucial differences in treatment

Trusts are common in US estate planning. However, UK tax rules for trusts can be complex, depending on the terms of the trust.

For example, if a trust has a sole trustee who becomes UK resident, the trust itself may be treated as UK resident, bringing worldwide income and gains into scope for UK tax. Distributions to UK beneficiaries can also trigger unexpected charges.

Taking early advice before moving to the UK is key. It is usually easier to make changes to trusts or the identity of trustees to avoid UK complications before arrival than to resolve an unexpected issue once a trust comes into the UK tax net.

Of course this is not an exhaustive list, but they are among the most frequent topics we come across in practice.

For more details on US/UK issues that clients moving between jurisdictions should consider, we have also produced the following briefings:

To find out more about the tax and estate planning issues that can arise when moving between the US and the UK, including UK tax residence, the Foreign Income and Gains regime and the treatment of US trusts, please contact our Private Client team or your usual Farrer & Co contact.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.