US Tax Filing for Americans Living in the UK
Living in the UK as a US citizen or green card holder creates one of the most complex expat tax situations: both countries have high tax rates, a comprehensive tax treaty, and different tax year end dates (April 5 vs December 31). The Foreign Tax Credit typically eliminates double taxation for most UK-based Americans, but coordination between HMRC and IRS obligations requires specialist knowledge.
Get started with your filingWho this is for
- ✓ US citizens or green card holders residing in the UK
- ✓ Americans on UK work visas or with Indefinite Leave to Remain
- ✓ US expats who also need to file a UK Self Assessment return
- ✓ Americans with UK pension, rental income, or investment portfolios
- ✓ Those who may qualify as US-UK dual tax residents
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 1040 (US Individual Income Tax Return)
- 2 Form 1116 — Foreign Tax Credit (typically preferred in the UK over FEIE due to high UK tax rates)
- 3 Form 2555 — FEIE (less commonly used in the UK, but available)
- 4 FinCEN Form 114 (FBAR) — for UK bank and investment accounts
- 5 Form 8938 — FATCA reporting for UK financial assets above thresholds
Documents usually needed
- 📄 P60 or P11D from UK employer, or UK Self Assessment return
- 📄 UK bank and investment account statements
- 📄 Records of any UK pension contributions or pension income
- 📄 Travel records for days inside and outside the US and UK
- 📄 Prior year US tax return
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
We analyse the US-UK treaty position and determine whether FTC or FEIE is optimal
UK income tax paid is credited against US liability using Form 1116
FBAR is prepared for all UK and other qualifying foreign accounts
A licensed CPA coordinates both your US return and, if needed, your UK Self Assessment
When human review matters
- ⓘ UK tax year ends April 5 — US year ends December 31; the timing mismatch requires careful FTC allocation
- ⓘ UK pension contributions and ISA accounts have specific US tax treatment that differs from UK treatment
- ⓘ The US-UK treaty has a savings clause — treaty benefits are limited for US citizens
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Standard
- ✓ Schedule C & SE for self-employment
- ✓ Multiple income sources and currencies
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
- ✓ Everything in Expat
- ✓ Schedules D & E for investments and rentals
- ✓ Foreign asset reporting (Form 8938)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for Americans Living in the UK
Should I use FEIE or FTC as a US expat living in the UK?
The Foreign Tax Credit is almost always more beneficial for UK residents. UK income tax rates (20%–45%) typically exceed the FEIE benefit. The FTC allows you to offset pound-for-pound the UK tax paid against your US liability, often eliminating any remaining US tax.
Do I need to file both a US and UK tax return?
Possibly yes. If you're employed in the UK, UK PAYE may handle your UK obligations. But if you're self-employed, have UK investment income, or meet HMRC's Self Assessment criteria, you'll need to file a UK return as well. We handle both.
Are ISAs taxable in the US?
Yes — ISAs (Individual Savings Accounts) are UK-registered tax-exempt accounts, but the US does not recognise the ISA exemption. Interest and gains within an ISA must be reported on your US return. The US-UK treaty does not currently extend treaty benefits to ISAs.
Who is this for?
Browse by your situation for tailored guidance and the right package.
