How to Build a Financial Plan That Spans the Atlantic

At Skybound Wealth USA, my work centres on helping clients align their wealth, tax responsibilities, and long-term plans across both countries. Whether you intend to stay permanently, return to the UK, or remain undecided, having a strategy that works on both sides of the Atlantic is essential.

Here’s how I advise clients to approach it.

Different Tax Years, Different Reporting. One Global Income

The UK tax year runs from 6 April to 5 April, while the U.S. follows the calendar year. This mismatch alone is enough to trip people up. On top of that, U.S. tax residents face worldwide income reporting, FATCA and FBAR filings for foreign accounts, and PFIC rules around non-U.S. funds. Even your UK pension, though growing tax-deferred at home, must be reported in the U.S.

Planning tip: Work with an accountant who understands both systems, and build a financial plan that ensures pensions, investments, and property income are declared and structured efficiently across jurisdictions.

Retirement Planning: Bridging SIPPs, 401(k)s, and IRAs

Many clients hold UK pensions alongside U.S. retirement plans such as a 401(k) or IRA. Each works differently. UK schemes grow tax-deferred but withdrawals are taxable in the U.S., while 401(k) contributions reduce U.S. taxable income but don’t benefit from UK relief. The U.S.–UK tax treaty offers solutions, but it must be applied correctly.

Planning tip: Map out your retirement assets together, not in isolation. Understand which pots to draw from first, how income will be taxed, and the role timing plays in maximising value.

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Property in One Country, Income in Another

Owning property across borders brings further complexity. Rental income from a UK buy-to-let must be reported in the U.S., while selling a UK home may qualify for UK relief but not for U.S. exclusions. Conversely, U.S. property sales may trigger depreciation recapture, which doesn’t exist under UK rules.

Planning tip: Review property transactions through both tax lenses. The timing of a sale and exchange rate movements can have a major impact on the outcome.

Estate Planning: Two Legal Systems, One Global Legacy

Cross-border estates require careful coordination. U.S. estate tax rules currently allow for a $13 million exemption, set to reduce in 2026, while UK inheritance tax applies at 40% above £325,000. Recent UK changes replacing domicile of origin with a residency test add another layer, and pensions remain within the UK inheritance tax net regardless of residency.

Planning tip: Align your wills across both countries, appoint executors who understand the cross-border context, and ensure beneficiary designations match the legal frameworks that apply.

Why a U.S.-Only or UK-Only Adviser Isn’t Enough

Too often, expats rely on advisers who understand just one jurisdiction. The result is a patchwork approach: compliant in one country but exposed in the other, efficient in one area but leaking value elsewhere. Estate and pension rules rarely align.

At Skybound Wealth USA, our proposition is designed to bridge that gap. We work with U.S. tax professionals and UK trustees to ensure your financial plan works as a single, coordinated strategy.

Protecting Your Wealth Across Borders Starts Here

You don’t need two separate plans. What you need is one joined-up strategy that protects you across borders. That means understanding when to draw pension income, balancing taxable and tax-deferred assets, reducing global tax liability, aligning estate documents and beneficiary nominations, and building an investment plan that meets U.S. rules while remaining globally efficient.

If you would like to review how your U.S. and UK finances fit together, book a cross-border planning review. The right advice today can give you clarity and confidence for the future.