Your relocation to London will involve choosing a relocation services company to handle all of your moving requirements: choosing a home, transport, and possibly even schools if you are moving to London with your family.
There is another aspect of your relocation that you have to consider carefully even before you make the move across the pond. For Americans moving you have to get a professional to look into your tax affairs and advise you on different aspects of your employment and what it means for your tax returns back home.
Foreign Bank and Financial Accounts
Not many Americans moving have even heard of this aspect of their foreign financial affairs but it could very easily affect your finances and your tax return. If you have a foreign bank account, which you certainly will have once you complete your relocation, and you at any stage, have an amount over $10 000 dollars in that account,
you are required by law to register with the US Department of Treasury. This can come as a bit of a shock if you have not planned for this.
It is very important to remember that if you are an American moving you will have to file two sets of tax returns each year. One in England and one in the United States. There are several exemptions and tax credits that you can apply for after your relocation but you’re going to need a specialized foreign tax expert to set it all up for you before you leave home.
There are a number of reasons to do this through a US based tax attorney before you, the biggest being that he or she will have a good understanding about all of the forms that you have to submit as a part of the tax return and they will be able to minimize the amount of taxes that you have to pay.
Keeping up with domestic US financial news can be difficult when you are moving; unless you know what you’re looking for you won’t be getting the same amount of news coverage. Best to have someone at home looking after your financial affairs while you’re enjoying London.