Trump Tax Changes, good for American expats?
Research by Bambridge Accountants, a London based firm specializing in US Tax for American citizens in the UK, has suggested that tax changes proposed by US President Donald Trump could in fact help higher earning Americans living in the UK.
The report by Bambridge Accountants explains that the President's proposal to remove Net Investment Income Tax - also known as the Medicare tax - could save wealthier US expats between $500 and $1000 each:
"Since January 2013, high-earning US citizens have been subject to a 3.8% surtax on investments when their net income is above $200,000 (for individuals) and $250,000 for married couples."
"This additional charge is one of the main reasons some UK-based American expats end up having to pay US income tax in addition to UK tax – because US citizens cannot offset their UK tax credits against the additional tax charge."
Alistair Bambridge, Senior Partner at the firm, explained that "Tax cuts are a big priority for President Trump – and while it’s unlikely he set out specifically to help Britain’s US expat community, they will emerge as big winners if the Senate gives this plan the nod."
"While the status of EU citizens in a post-Brexit Britain remains unclear, life for many in Britain’s US expat community could be about to get a little easier. The repeal of this surtax will spare thousands of Americans living here the bizarre and costly experience of having to pay income tax to both London and Washington."
"With most of the wealthiest US expats in Britain living and working in London, it’s likely the capital will receive the biggest windfall – both in tax dollar terms and in London’s improved prospects of retaining US high-fliers."
Further details can be found at http://www.bambridgeaccountants.co.uk