Americans living in the UK
You moved countries. Your US filing obligation came with you.
Whether you arrived last year or twenty years ago, you file a US federal return on worldwide income every year, plus foreign account reports, and usually a UK Self Assessment return as well. Done together, the two returns normally leave little or no US tax to pay. Done separately, they generate mismatches and queries.
Typical situations
- Employed in the UK on PAYE with a workplace pension
- Self-employed or running a UK limited company
- Holding ISAs, UK funds or UK property
- Married to a non-US spouse
What is normally filed
- Form 1040 (annual)
- Worldwide income in US dollars, with Form 2555 or Form 1116 to relieve double tax.
- FBAR (FinCEN 114)
- If all your non-US accounts together exceeded US$10,000 at any point in the year.
- Form 8938
- If specified foreign assets exceeded US$200,000 at year end or US$300,000 at any time (double for joint filers).
- UK Self Assessment
- If you have untaxed, foreign or self-employment income, capital gains, or HMRC has asked you to file.
What catches people out
- ISAs are not tax-free in the US and the funds inside are usually PFICs.
- A UK pension can be reportable on both the FBAR and Form 8938.
- Selling your UK home: Section 121 and Private Residence Relief work differently, and the currency movement is part of the US gain.
- Non-US spouse: filing status choices affect both the standard deduction and FBAR reporting of joint accounts.
FAQ
Questions we are asked
I pay a lot of UK tax. Will I owe US tax too?
In most cases little or none, because UK tax paid is credited against US tax on the same income. Certain items can still produce US tax: PFIC funds, some pension events, capital gains taxed at lower UK rates, and Net Investment Income Tax where it applies.
Do I need an accountant in each country?
You need the two returns to agree. One team preparing both from one file is the simplest way to achieve that.
Written by the US UK Expat Tax advisory team. Last reviewed 7 November 2026
Primary sources checked
General information, not personal tax advice. Rules and thresholds change; we confirm the position for your facts before any work.
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