28 December 2020
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If 2020 hadn’t been challenging enough with the uncertainty surrounding the economy and the global pandemic there was a contested US election to top it off. With Trump’s law cases slowly being thrown out, it seems inevitable that come January 20th there will be a new president in the White House, and a new administration in office.
Although until the day the administration officially changes, and legislation is actually put in place we can only speculate on how this new administration will affect US expats living in the UK.
However, as part of the Democrat election campaign some of their proposed tax reforms have been considered radical as they pretty much reverse changes made in 2017 by the Trump administration and will primarily affect high earners – at home and abroad.
The key proposed changes for Americans abroad include:
Such changes, if passed, could have a significant impact on the amount of tax you are due to pay to the US government.
Ironically, winning the election was the easy part for Joe Biden, as once he takes his place at the White House the hard job of getting legislation through Congress will begin.
Depending on the outcome of the Georgia run-off elections, it is possible that while Democrats will have control of the House, they may still be the minority in the Senate. For any significant changes to be approved, the incoming President may need to secure an element of bipartisan support, so do not be surprised if some of his proposals fall by the wayside or get heavily watered-down.
With the situation being so uncertain you could be tempted to ‘wait and see’ but it is better to be prepared and start the conversations earlier rather than later. If you think some of these tax changes could affect you, or you would like clarification, give us a call today and we will offer advice on what the best plan of action could be for you at this time
For updates featuring tax changes, reminders for deadlines, pointers on how to maximise your accounts, and information on Everfair Tax and their activities: you need look no further than our news & resources pages.View More
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