Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thank you for allowing me to assist you.
Your UK residence status affects whether you need to pay tax in the UK on your foreign income.
Non-residents only pay tax on their UK income - they don’t pay UK tax on their foreign income.
Residents normally pay UK tax on all their income, whether it’s from the UK or abroad.
The tax treaty between the US and UK covers relief for double tax.
It will depend on what these specific income producing assets are and how the treaty addresses the tax.
There is an additional charge for phone but it will not be me specifically you speak to if you request that.
You know you have a certain amount that is not taxable. The standard Personal Allowance is £11,000, which is the amount of income you don’t have to pay tax on.
Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £122,000 or above.
Higher rate for income £43,001 to £150,000 is 40%
There is an additional rate for income over £150,000 (45%)
As you would still be taxed in the US on a goodly amount of that and your wife on all her portions, the UK will allow you a tax credit on the 22% you pay in the US.
Under the treaty depending on if you are a non US person when you leave, you may be allowed to claim a lower tax on some of the income. The dividends can be claimed at a lower tax rate ( 5 or 15 per cent deduction).
Your wife would not be allowed that as a US citizen.