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Year-End Financial Check-Up

This post was written by guest contributor Kristopher Heck.  Kris is a Financial Advisor with Tanager Wealth.

We are fast approaching the end of the UK tax year* and US citizens living in the UK should be considering a number of items that impact your household finances:

Get up to date with your pension contributions

  • Annual contribution limit for 2013/14 is £50,000 before April 5th, but is reduced to £40,000 on April 6th.
  • Unused pension contribution limits in 2010/11, 2011/12 and 2012/13 may be available for carry forward into 2013/14 and used today. However, you must have been a member of a UK registered pension scheme in those years to do so.
  • Don’t forget US tax ramifications – large UK pension contributions may be able to use up some of the US Foreign Tax Credits that you have accumulated in past years.

Make those gifts you keep meaning to make

  • Consider giving assets to other family members now or making a charitable contribution through dual US/UK qualified charities such as Anglo-American Charity Ltd http://www.anglo-americancharity.org
  • Reducing the value of the part of your estate that is above the UK nil rate band (£325,000) will reduce the UK Inheritance Tax (IHT) payable when you pass away.  Most lifetime gifts to individuals become UK IHT exempt if you survive for seven years.
  • Why not do some good and reduce your taxes as well?

Speak to a specialist US/UK financial advisor

OK, this is not specific to this time of year but while you’re thinking about your year end financial position, why not speak to a specialist US/UK wealth management firm to analyse your overall household finances?

A good financial advisor will ensure you have a financial plan with goals, a risk-managed investment strategy that encompasses all areas of your life and, most importantly, will stop you from making some common tax and investment mistakes or, worst of all, from doing nothing at all.

Inertia is our common enemy – “Nothing happens until something moves.” ― Albert Einstein

With any cross-border financial planning you should seek joined up advice from your specialist US/UK tax advisor, your lawyer and your financial advisor.  Ask Tanager Wealth Management LLP how we can help you.

* If you want to know why it starts on 6th April click here:

Tanager Wealth Management LLP provides financial and investment advice to American expats. The firm is an SEC registered investment advisor in the USA and is authorised and regulated by the Financial Conduct Authority in the UK.  Tanager Wealth Management does not provide tax advice.

US Tax welcomes contributions from professionals that may offer advice or products of interest to our clients.  The views expressed in these posts are the views of the individual or firm that has submitted the post.  For our US clients, please remember that nearly all your financial and business decisions, as well as many of your personal decisions, will have US tax implications. We will be happy to discuss these implications with you.

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