How American Expats in the UK Can Avoid Double Taxation

Understanding Double Taxation

Double taxation occurs when you're liable to pay taxes on the same income to both the United States and the United Kingdom. However, several mechanisms exist to prevent or minimize this burden.

The US-UK Tax Treaty

The tax treaty between the U.S. and UK provides relief mechanisms including the Foreign Tax Credit and Exclusions. Understanding how to leverage these can significantly reduce your tax liability.

Foreign Earned Income Exclusion (FEIE)

The FEIE allows you to exclude a significant portion of your foreign earned income from U.S. taxation, reducing your overall tax burden.

Foreign Tax Credits

You can claim a credit for taxes paid to the UK government against your U.S. tax liability, effectively reducing what you owe to the IRS.

Professional Guidance

Our team specializes in cross-border tax planning and can help you implement the most beneficial strategy for your specific situation.