At present I am helping a client to navigate the intricacies of the US tax system, and in particular the possible exit tax if they give up their green card (right to permanent residency), without falling foul of our own tax rules.
You have specific expertise regarding UK and US offshore tax, trust and estate planning. Can you share a tax tip with us that our readers might find of interest?
I have two. (1) If you go to work in America try to do so under another visa category, rather than a green card. The reason being that if you hold a green card for more than seven years and then want to return to the UK, you may face an ‘exit charge’ – a tax on the deemed gain as if all your assets were sold at market value on the date you give up your green card.
(2) If you are British and marry an American but live together in the UK, it is best for you to own the family home. Here, we usually exempt all gain on its sale but for Americans, who are liable in the US for tax on their worldwide income and gains, only the first $250,000 of gain is exempt.
Is there a recent tax development that has caught your eye?
On 1 January this year, Italy brought into force a version of ‘non-domiciled’ taxation for new residents (article 24-bis of the Italian income tax code). Spain, Portugal and France all have more or less generous regimes to attract wealthy individuals to their shores. It is time to think internationally for our clients, particularly if our own country cannot make up its mind whether to welcome immigrants or not.
Is there a recent trend you are seeing in the market?
There is a shortage of senior private client lawyers, probably a direct result of large firms closing their practices in the 1990s. But the same firms are now realising their mistake and trying to rebuild their departments, so perhaps the problem will be cured in 20 years’ time!
What advice would you give someone starting their career in tax?
You have chosen well. Private clients are, by and large, pleasant to work with and appreciative of your efforts. Keep focused on finding solutions to your clients’ problems, as that is what they will thank you for, not for a detailed exposition on the finer points of the annual tax on enveloped dwellings.
If you could make one change to a tax law or practice anywhere in the world, what would it be?
My change is closer to home. I would like the government to finalise its changes to the trust, property and non-dom tax rules and then leave clients and their advisers in peace for a long while. This constant tinkering does no favours to the country in trying to attract wealth and investment.
And finally, you might not know this about me but…
When not practising as a lawyer, I help run a children’s charity and lead camping trips around Britain and the continent. Lighting fires and cooking for 80 over them is something of a contrast to drafting wills or advising on inheritance tax, but the leadership skills I have learnt on camp have helped in managing wayward partners back in the office!
At present I am helping a client to navigate the intricacies of the US tax system, and in particular the possible exit tax if they give up their green card (right to permanent residency), without falling foul of our own tax rules.
You have specific expertise regarding UK and US offshore tax, trust and estate planning. Can you share a tax tip with us that our readers might find of interest?
I have two. (1) If you go to work in America try to do so under another visa category, rather than a green card. The reason being that if you hold a green card for more than seven years and then want to return to the UK, you may face an ‘exit charge’ – a tax on the deemed gain as if all your assets were sold at market value on the date you give up your green card.
(2) If you are British and marry an American but live together in the UK, it is best for you to own the family home. Here, we usually exempt all gain on its sale but for Americans, who are liable in the US for tax on their worldwide income and gains, only the first $250,000 of gain is exempt.
Is there a recent tax development that has caught your eye?
On 1 January this year, Italy brought into force a version of ‘non-domiciled’ taxation for new residents (article 24-bis of the Italian income tax code). Spain, Portugal and France all have more or less generous regimes to attract wealthy individuals to their shores. It is time to think internationally for our clients, particularly if our own country cannot make up its mind whether to welcome immigrants or not.
Is there a recent trend you are seeing in the market?
There is a shortage of senior private client lawyers, probably a direct result of large firms closing their practices in the 1990s. But the same firms are now realising their mistake and trying to rebuild their departments, so perhaps the problem will be cured in 20 years’ time!
What advice would you give someone starting their career in tax?
You have chosen well. Private clients are, by and large, pleasant to work with and appreciative of your efforts. Keep focused on finding solutions to your clients’ problems, as that is what they will thank you for, not for a detailed exposition on the finer points of the annual tax on enveloped dwellings.
If you could make one change to a tax law or practice anywhere in the world, what would it be?
My change is closer to home. I would like the government to finalise its changes to the trust, property and non-dom tax rules and then leave clients and their advisers in peace for a long while. This constant tinkering does no favours to the country in trying to attract wealth and investment.
And finally, you might not know this about me but…
When not practising as a lawyer, I help run a children’s charity and lead camping trips around Britain and the continent. Lighting fires and cooking for 80 over them is something of a contrast to drafting wills or advising on inheritance tax, but the leadership skills I have learnt on camp have helped in managing wayward partners back in the office!
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