Case Study

People holding dual nationality should take expert advice

The problem

Mrs Fox is a dual US and UK national is therefore subject to the highly complex US tax rules pertaining to citizens living abroad.

As a senior executive Mrs Fox is a very high earner. So is her husband, an entrepreneur. Both are keen to boost their savings and invest in property.

Our advice

As advisers experienced in dealing with clients holding dual nationality, it was easy for us to identify the investment products suited to US citizens, which could accommodate US-compliant funds.

We also found a suitable pension plan for Mr Fox, which he could pay his excess business profit into.

Finally, we set up a low cost Auto Enrolment pension scheme for Mr Fox’s employees to join; helping to keep his business compliant with the new legislation.

What did our advice achieve?

We reduced the tax liability on Mr and Mrs Fox’s earnings and dividends, whilst ensuring Mrs Fox remained compliant with US tax laws.

Our annual reviews, along with cashflow modelling, help to keep Mr and Mrs Fox on track to meet their retirement objectives.

What can we learn from Mr and Mrs Fox?

Simply that anyone holding dual UK and US nationality, should only deal with an adviser who understands both systems and is experienced in advising similar clients.

To do otherwise is dangerous and could leave you open to falling foul of the complex US system and its interaction with UK rules.