92. PFICs, State Taxes and Costly Mistakes for Americans Moving to Britain

Moving to the UK can be an exciting opportunity, but for Americans abroad, it often comes with a harsh reality: the US tax system doesn’t stay behind. This episode delivers practical advice for expats navigating dual tax UK and US obligations. Richard Taylor, Chartered Financial Planner and founder of Plan First Wealth, is joined by Sally Hawkins, Tax Partner at Gunnar Cook, to unpack some of the biggest tax mistakes Americans make when relocating to the UK and why so many expats find themselves caught out by rules they never knew existed. As an expat wealth advisor specializing in cross border financial planning, Richard breaks down what British expat and American abroad needs to know. From citizenship-based taxation and PFIC reporting requirements to ISA pitfalls, foreign investment restrictions and complex filing obligations, Richard and Sally explain why moving overseas rarely simplifies your tax affairs and how innocent mistakes can quickly become expensive problems. The conversation also explores the challenges faced by internationally mobile professionals, including equity compensation, founder shares, restricted stock units (RSUs) and why a lack of planning before a move can trigger unexpected tax bills long after arriving in the UK. For anyone weighing expat retirement planning, UK pension treatment, or US pensions across borders, the right financial advice makes all the difference. Richard and Sally also discuss one of the most overlooked issues for Americans abroad: state tax exposure. They explain why states such as New York and California may continue to claim taxing rights even after you've left the country and what steps can help break those ties properly and the kind of US tax help that protects your international wealth. Whether you're planning a move to Britain, already living in the UK, or advising internationally mobile professionals, this episode offers practical insights into the tax landmines that can derail even the most carefully planned relocation. -- Expat Wealth is supported by Plan First Wealth. Plan First Wealth is a Registered Investment Advisor serving fellow expatriates and immigrants living across the US on matters such as retirement planning, investment management, tax planning and non-US asset management. https://planfirstwealth.com/ -- Expat Wealth is affiliated with Plan First Wealth LLC, an SEC registered investment advisor. The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Plan First Wealth. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Plan First Wealth does not provide any tax and/or legal advice and strongly recommends that listeners seek their own advice in these areas.