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In recent years, we have seen a marked increase in US citizens choosing to buy property and relocate to the UK countryside, drawn by the lifestyle, education opportunities, cultural links, and growing ease of transatlantic working. Popular areas such as the Cotswolds have become particularly desirable, offering picturesque villages and easy access to London. At Michelmores, our Private Property & Landed Estates (PPLE) team has experienced this trend firsthand, supporting a growing number of US clients wishing to purchase rural UK property, either as a primary home, a part-time residence, or as part of a long-term relocation plan.
Our integrated approach means we can advise on all aspects of UK property acquisition, from structuring ownership to navigating the tax and legal implications of holding assets in the UK. Working closely with specialists across our tax, immigration, private wealth, and corporate teams, we provide a seamless experience for clients looking to establish themselves in the UK with confidence.
For anyone considering a move, it is essential to be aware of the key legal, tax, and immigration issues early in the process. Below is a high-level overview of the themes discussed at our recent Moving to the UK from the US event, hosted by Michelmores.
Navigating US and UK tax rules
In the UK, the extent of your tax liability depends on your residence status – understanding the rules and how they apply to you is crucial. Seeking advice early can help you plan effectively and avoid costly mistakes.
Top tips from our experts:
- Know the UK residence rules – The UK’s Statutory Residence Test is complex, and it’s easy to trigger UK residency without realising it. Early advice will help you understand the rules and avoid unexpected tax exposure.
- Ensure your UK property is structured appropriately – If you acquire UK property, it is important to have a UK Will in place. US revocable grantor trusts are rarely suitable for holding UK assets and can lead to unnecessary tax complications.
- Review any trusts or corporate structures you are connected with – If you expect to become UK resident, review any trusts where you are a trustee or beneficiary, as well as any corporate entities where you have an interest. UK tax treatment of offshore structures or foreign entities can be complex, and trust or business interests may need to be restructured prior to becoming UK tax resident.
- Be aware of management and control or creating a permanent establishment – If you spend time in the UK while performing work for an overseas business, you may inadvertently bring that business within the UK tax net. Careful planning is essential for business owners, directors, and remote executives.
These are just some of the essential pre-arrival planning steps we advise US clients to undertake. Our Tax, Trusts & Succession specialists work regularly with US clients and advisers to ensure both UK and US tax positions are aligned and coordinated.
Visa and immigration considerations
Alongside tax planning, US citizens must consider the immigration routes available for living, working, or investing in the UK. The correct visa will depend on personal circumstances, the purpose of the move, and long-term plans.
Example visa options that may be available:
- Sponsored work visas for individuals taking up UK-based employment.
- Global talent visas for leaders or emerging leaders in fields such as science, digital technology, arts and culture.
- Graduate visas for graduates from UK higher education institutions.
- Higher potential individual visas for international graduates from leading non-UK universities seeking employment in the UK.
- UK expansion worker visas for overseas businesses seeking to establish a UK branch or subsidiary. This allows senior or specialist employees of the overseas business to relocate temporarily to the UK to manage the expansion.
- Innovator Founder visa for entrepreneurs relocating to launch or grow a business in the UK.
- Family visas for those joining a spouse, partner, or close family member.
Stay compliant with your visitor visa
US citizens can visit the UK by applying for an Electronic Travel Authorisation (ETA), but all visitors must meet strict criteria, including a clear intention to leave within six months. Visitor visas prohibit employment and allow only limited business activities, such as attending meetings. Understanding these restrictions is essential to avoid serious consequences, as overstays or prohibited work can result in visa refusals, cancellations or future travel bans.
Our Immigration team regularly advises US clients on the most efficient and flexible routes available, coordinating visa strategy with tax residency plans and property acquisition timelines so the move proceeds smoothly.
How Michelmores can help
For US citizens exploring purchasing a UK property or considering a UK relocation – whether temporary or permanent – our multidisciplinary offering brings together property, tax, immigration, wealth structuring, and international planning advice in one place. Whether you’re considering a country estate in the Cotswolds or a family home elsewhere in the UK, we help clients plan, avoid pitfalls, and develop a strategy that reflects their personal, family, and financial goals.
If you would like to explore the considerations around a move to the UK or would find value in a tailored pre-arrival planning discussion, our team would be happy to assist.
This article is for general information only and does not, and is not intended to, amount to legal advice and should not be relied upon as such. If you have any questions relating to your particular circumstances, you should seek independent legal advice.
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