UK a great place for Americans to retire.....if you can get in

[jim584672]

If we live in UK for 7 months out of the year and have NHS for healthcare (getting in not an issue) and live in California or somewhere else sunny for 5 months with travel insurance, would that work out? Any gotchas with that plan? Our relatives from outside the U.S. come to visit California sometimes for months at a time with travel health insurance, though no one ever had a car accident or anything big to test out the policies. Or sometimes they go to places like Spain or Portugal for vacations during the winter.

It is rainy here today so I've gotten some major decluttering done. If we don't end up moving, worst case we'll have a clutter free house.

The downside to this is having to file US and UK tax returns once the UK considers you a tax resident.

 

[daylatedollarshort]

The downside to this is having to file US and UK tax returns once the UK considers you a tax resident.

Yes, I've been looking at the UK tax bands. Are there local income taxes? If we make the move we would be renting and probably buy one car so other than the country income tax I'm not sure what other taxes I'd have to budget for. I assume the council tax is included in the rent cost.

 

[REWahoo]

Yes, I've been looking at the UK tax bands.

None of them can hold a candle to the Beatles!

 

[ShokWaveRider]

Has anyone looked into spousal visas for a non UK Citizen spouse. We have been married for 30 years but my wife is Canadian, I am a UK Citizen. Is the procedure for the application long winded?

 

[nun]

Has anyone looked into spousal visas for a non UK Citizen spouse. We have been married for 30 years but my wife is Canadian, I am a UK Citizen. Is the procedure for the application long winded?

Yes it is tedious. You need annual income of over 18k pounds or savings over something like 64k pounds to qualify.

 

[nun]

The downside to this is having to file US and UK tax returns once the UK considers you a tax resident.

That's something that US expats are continually struggling with. However, a little planning and it can be managed. The bigger issue is the restrictions on the type of investments that can be owned that are imposed by IR, HMRC and financial services companies.

 

[Hyperborea]

The downside to this is having to file US and UK tax returns once the UK considers you a tax resident.

One option for a short time is to use non-dom status. It would allow somebody to shield income from outside the UK for 7 years before having to either have UK taxes apply to it or start paying a large yearly fee (high enough that for most of us here it doesn't make sense to keep the status).

I have UK citizenship and had thought about using this at one point to use the UK as a base to explore Europe from. Not such a good idea now though.

 

[Alan]

Yes, I've been looking at the UK tax bands. Are there local income taxes? If we make the move we would be renting and probably buy one car so other than the country income tax I'm not sure what other taxes I'd have to budget for. I assume the council tax is included in the rent cost.

There are no local taxes but the equivalent of property tax is council tax and is the responsibility of the occupant not the house owner so is not included in the rent.

The rules covering non-Dom status are changing so I don't believe it can be claimed after this current year for folks resident in the U.K. I did consider it for this year but very much wanted to be covered by the NHS.

https://www.theguardian.com/money/2015/apr/07/non-dom-tax-status-living-working-paying-tax-uk

 

[daylatedollarshort]

There are no local taxes but the equivalent of property tax is council tax and is the responsibility of the occupant not the house owner so is not included in the rent.

Okay, thanks. I thought some of the rents I was looking at seemed pretty inexpensive. That bumps the monthly rental cost up a bit.

 

[F4mandolin]

Okay, thanks. I thought some of the rents I was looking at seemed pretty inexpensive. That bumps the monthly rental cost up a bit.

We are paying around £1650 a year for council tax for a small 3 bedroom detached that we own. I don't know what the rentals would run at..... size+location matter of course ........

 

[Alan]

We are paying £1,425/year council tax for a 3 bed 1.5 bathroom single storey bungalow that we are currently renting.

 

[nun]

We are paying £1,425/year council tax for a 3 bed 1.5 bathroom single storey bungalow that we are currently renting.

I pay $4000/year on a 3 bedroom house in New England.....so that's about £3200.....like I said, the UK looks pretty inexpensive to me.

 

[Alan]

I pay $4000/year on a 3 bedroom house in New England.....so that's about £3200.....like I said, the UK looks pretty inexpensive to me.

Although we haven't needed to pay property taxes in Texas our rent for our 2 bed apartment was $1,396 / month compared to the 3 bed house we have been renting here for £675/month, which is about what we paid in rent for a similar house in the same town in 2011. My sister rents a 3 bed house on the high street in town for £450/month.


While the U.K. is a lot less expensive than the USA, salaries are also much lower, certainly in engineering fields, so I feel very fortunate to have had my career in the USA and then be able to retire on a pension that is more than double the average salary in the UK.

 

[nun]

While the U.K. is a lot less expensive than the USA, salaries are also much lower, certainly in engineering fields, so I feel very fortunate to have had my career in the USA and then be able to retire on a pension that is more than double the average salary in the UK.

Exactly! My US SS and UK state pensions added together will be larger than the average UK salary and I would still have my company pension and withdrawals from my savings. The UK looks very cheap.

 

[Meadbh]

While the U.K. is a lot less expensive than the USA, salaries are also much lower, certainly in engineering fields, so I feel very fortunate to have had my career in the USA and then be able to retire on a pension that is more than double the average salary in the UK.

Exactly! My US SS and UK state pensions added together will be larger than the average UK salary and I would still have my company pension and withdrawals from my savings. The UK looks very cheap.

So I think you have established that the UK is financially a great country to retire to if you spent your working career in the US. I note that you are both returning to the country of your birth. The experience may be different for Americans who do not have the same connection to the UK.

 

[Alan]

So I think you have established that the UK is financially a great country to retire to if you spent your working career in the US. I note that you are both returning to the country of your birth. The experience may be different for Americans who do not have the same connection to the UK.

If you have read my posts, I have said many times that the reason we are returning to the U.K. is to be close to family and friends and not for financial reasons. The fact that it is financially very good for us is just Lagniappe!!

 

[Meadbh]

If you have read my posts, I have said many times that the reason we are returning to the U.K. is to be close to family and friends and not for financial reasons. The fact that it is financially very good for us is just Lagniappe!!

Alan, I know that family and friends were your primary motivation. Nun, who was the OP, posited the financial argument.

 

[nun]

Alan, I know that family and friends were your primary motivation. Nun, who was the OP, posited the financial argument.

Yes, because of the 20% fall in the value of the pound since the BREXIT vote.
I also suggested that the UK would make a value for money vacation place.

 

[Viking]

This has been an interesting thread to read.

My wife's parents were both born in England, and maintain dual citizenship in Canada. Based on my research over the weekend, that makes DW a UK citizen by descent, and eligible for a UK passport. I think she will apply for the passport in the next year or two. Who knows, we might want to spend a few years there visiting with her extended family and really seeing all the natural and historical sights.

It will be interesting to see how the upcoming Supreme Court decision affects May's plans for a hard Brexit and/or the UK's place in the Shengen Area.

 

[daylatedollarshort]

Although we haven't needed to pay property taxes in Texas our rent for our 2 bed apartment was $1,396 / month compared to the 3 bed house we have been renting here for £675/month, which is about what we paid in rent for a similar house in the same town in 2011. My sister rents a 3 bed house on the high street in town for £450/month.

While the U.K. is a lot less expensive than the USA, salaries are also much lower, certainly in engineering fields, so I feel very fortunate to have had my career in the USA and then be able to retire on a pension that is more than double the average salary in the UK.

The average rent for a two bedroom apartment in San Francisco is $4,487 a month, median home price over $1.1M. I really like it here in the Bay Area, but from looking online even London and Paris seem cheaper these days, at least for comparable housing, and smaller cities look like real bargains.

If we have to pay ~$30K a year again just for health insurance premiums here (if we can even get insurance with actual full coverage post-ACA), I think that might be our tipping point for moving, at least until Medicare age (also have to wait and see what happens with that program).

 

[6miths]

DW was born in London and had a UK passport for the longest time. Last I checked, male spouses still couldn't get UK citizenship though there was talk of change. Of course if UK comes out of EU, much of the attraction is lost.

 

[Koogie]

This thread had inspired me to renew my UK passport, which I had let lapse.
Then I went online and saw how much they wanted to renew it ! £102.86 !!

Geez, it's like they're trying to get me to rescue the pound all by myself !

 

[nun]

DW was born in London and had a UK passport for the longest time. Last I checked, male spouses still couldn't get UK citizenship though there was talk of change. Of course if UK comes out of EU, much of the attraction is lost.

You can get UK citizenship. A UK spouse can get their spouse a residence visa, then after a couple of years you apply for Indefinite Leave to Remain which is the equivlalent of a green card and then you can apply for UK citizenship.

 

[nun]

The average rent for a two bedroom apartment in San Francisco is $4,487 a month, median home price over $1.1M. I really like it here in the Bay Area, but from looking online even London and Paris seem cheaper these days, at least for comparable housing, and smaller cities look like real bargains.

If we have to pay ~$30K a year again just for health insurance premiums here (if we can even get insurance with actual full coverage post-ACA), I think that might be our tipping point for moving, at least until Medicare age (also have to wait and see what happens with that program).

Those real estate prices are up there. Alan has moved to the "Mississippi" of the UK when it comes to living costs.

 

[Dd852]

Our big move back to London is in May. I confess to mixed feelings - I love the place; I love our flat. I'm very unhappy at the Brexit vote and all the implications. And yeah, the weather can be grim - I always get depressed November-February when it gets dark at 4. Definitely will travel then! But the weather can also be glorious; the museums and theatre are terrific; Europe remains at the doorstep. And the US (where my family and roots are) is an easy flight away.