# Moving back /retiring to the UK after 40 years in the USA?



## Isabella2 (Jul 5, 2009)

I was born in the UK and have lived in the USA for almost 40 years. My husband is American. Our daughter lives in the UK as does the rest of my family. We would really like to move permanently and retire to the UK. 
The prospect of all the potential issues involved in making this move is daunting. 
I would appreciate any advice and especially any personal experiences of just such a move.
Thank you.


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## JOHNKL2SING (Jan 22, 2009)

*tax one more thing*



Isabella2 said:


> I was born in the UK and have lived in the USA for almost 40 years. My husband is American. Our daughter lives in the UK as does the rest of my family. We would really like to move permanently and retire to the UK.
> The prospect of all the potential issues involved in making this move is daunting.
> I would appreciate any advice and especially any personal experiences of just such a move.
> Thank you.



one other thing to take care of, is IHT Inheritance tax, you as a uk domicle are subject to 40% over the nil rate band currently 312k GBP However your husband only gets 55k and the tax would be payable on your death, so you need to seek some professional advice, before you move.

enjoy the move


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## Punktlich2 (Apr 30, 2009)

JOHNKL2SING said:


> one other thing to take care of, is IHT Inheritance tax, you as a uk domicle are subject to 40% over the nil rate band currently 312k GBP However your husband only gets 55k and the tax would be payable on your death, so you need to seek some professional advice, before you move.
> 
> enjoy the move


US estate duty on assets above a $1-million exemption is levied at a top rate of 55 percent. And there is also state tax to pay if you remain domiciled in a US state under their law, or assets are located there.

And unless your spouse is a US citizen, you need to consider a QDOT to avoid immediate imposition of the tax.

There is no UK inheritance tax (actually also an estate tax although called IHT) on inheritance from a spouse -- so long as both spouses are UK- or foreign-domiciled, or the inheriting spouse is UK-domiciled. HMRC does not generally challenge a claim to UK domicile of a bereaved alien spouse of a UK domiciliary, especially after long marriage. You can therefore pretty much ignore the 55k issue mentioned above. (This is from my experience, and from asking the specific question recently of the IHT help line. Spouses may be allowed to have independent domicile, but the presumption is still otherwise, especially after long marriage.)

But that is probably the least of your concerns.

I assume you have acquired 40 quarters of coverage for Medicare and Social Security. (Your daughter should consider contriving to qualify for Medicare as well; the effective cost is about $700 a year in self-employment tax via Form 1040, schedules C and SET. I know too many US expats who've retired the other way, from the UK to the USA and discovered they aren't eligible for Medicare. Medicare won't help you in the UK, nor will you need it here, but if you are visiting in the USA it can be literally a lifesaver, with or without travel insurance.)

Judging from other posts on this Web site your real main problems will be the cost of housing and getting a driving licence. It's hard to know where to begin in drawing up a list of things to think about.


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## LouPoo50 (Jul 24, 2009)

Very interesting and all the best to you and yours for the forthcomig move. My aunt in Arlington, Virginia (she came out to be my Godmother in 1958) is returning to Scoland after 50 plus years. My late father taught at Duke University, NC and he returned to Edinburgh in 1968 with the family. 

It is a gutsy move for an 84 year (as fun and healthy and she is) She has been in receipt of her UK pension over these years. Any salutary advice that I might give her before she comes over at the end of August (other than not to do it) Banking, monetary, health etc. She has only been over a handful of times in the 50 years but now has no family Stateside and wants to return to Scotland.

We live in West Lothian, 18 miles from Edinburgh but she may be exploring the possibility of an apartment or small semi detached bungalow here.


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