Non-US Investing • Early-30s UK-resident US-citizen seeking advice

Also, you mentioned Premium Bonds in your initial post. While returns on these are tax-free for a UK resident, the US will still apply its citizenship-based tax rules to you while in the UK, and so these become fully US taxable. Because of your US citizenship, these are of no particular use or benefit to you.

Very minor point in the scheme of things, but I think avoiding UK tax on interest and "only" paying US tax can be a meaningful benefit. UK and US both tax interest at earned income rates, but the UK earned income rates are much higher for even moderate earners (40% vs 22% or 24%), and even more punitive in the tax trap around £100k (60%, vs the US rate of 24%).

Statistics: Posted by TedSwippet — Sun Sep 15, 2024 2:55 am — Replies 10 — Views 748