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ARTICLE · 19 NOVEMBER 2024

How The UK Budget Impacts US Citizens

Withers LLP
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On 30 October 2024, Chancellor Rachel Reeves delivered the Labour Government's UK Autumn Budget (the 'Budget'). It was widely anticipated that the Government would radically change how the UK taxes...

GlobalTax
Joseph Brothers
Joseph Brothers
Maya (Nee Ladno) Buckland
Maya (Nee Ladno) Buckland
Claire Harris
Claire Harris
Jay Krause
Jay Krause
Jaime McLemore
Jaime McLemore
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On 30 October 2024, Chancellor Rachel Reeves delivered the Labour Government's UK Autumn Budget (the 'Budget'). It was widely anticipated that the Government would radically change how the UK taxes its so-called 'non-domiciled' residents. The Government did not disappoint in this regard, completely overhauling the UK tax treatment of non-doms from both a UK inheritance tax ('UK IHT') and a UK income and capital gains ('CGT') perspective.

US citizens and domiciliaries living in the UK now face unique challenges and opportunities as a consequence of these changes.

In this article, we cover:

Inheritance Tax

The United States gift and estate tax system turns on whether an individual either is a US citizen or is 'domiciled' in the United States at his or her death. Very generally, an individual is regarded as being 'domiciled' in the United States if he or she is living in the US with no intent to leave

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