How can a UK citizen move to the US or live in the USA?
As the cost of living continues to rise in Britain, an increasing number of individuals — ranging from students to families and retirees — are exploring relocating from the UK to America. Online interest in moving abroad has surged, with over 20,000 Britons annually deciding to move stateside, joining more than 1.3 million British citizens who have made it their home.
However, before making such a move, several crucial factors must be considered. These include assessing your eligibility to study or work in the US, understanding healthcare options, and determining how you can access your pension once you’ve settled there.
How British citizens Are moving (emigrating) UK to USA
From navigating visa requirements, accessing healthcare, managing your UK pension, and understanding US tax implications, we’ve got you covered.
All these things, whilst being inherently boring to organise, are really important when you’re planning to move successfully across the Atlantic.
If you’ve read our Moving to America from the UK guide and still need help or have unanswered questions, we provide tailored advice to anyone considering a move from the UK to the US, from managing tax affairs efficiently to the everyday.
Why not call us 0115 939 4606 or book a one-off one-to-one “Moving to the USA from UK” consultation with Simon Misiewicz as seen on You Tube.
Additional options on our booking form below:
In the meantime, let’s get started with the basics.
Can I visit the US without a visa?
How British Citizens are moving (emigrating) from the UK to the US.
For a short research trip, you can travel without a visa under the Visa Waiver Program (VWP). However, before your trip, you must apply for an Electronic System for Travel Authorization (ESTA). Here are the key points to remember:
-Eligibility: Ensure you are a UK citizen with a valid UK passport.
-ESTA application: Apply for ESTA online at least 72 hours before your flight. The ESTA is valid for two years, or until your passport expires, whichever comes first.
-Purpose and duration: Your visit must be for tourism, business, or transit, and you can stay for up to 90 days.
-Return ticket: You must have a return or onward ticket.
Failure to obtain ESTA approval can result in being denied boarding or entry to the US. For more detailed and updated information, visit the official ESTA website.
What type of visa do British citizens need?
UK citizens planning a long or permanent stay will need to apply for a US visa for employment, business, student, or tourist purposes (albeit the number of days allowed to stay in the United Kingdom is limited).
Each visa type has a visa category:
– Au Pair (exchange visitor): Visa Category: J
– Business visitor: Visa Category: B
– Domestic employee or nanny: Visa Category: B
– Intra-company transferee: Visa Category: L
– Sports people, athletes, artists and entertainers: Visa Category: P
– Professor, teacher, scholar (exchange visitor) Visa Category: J
– Student, academic, vocational: Visa Category: F
– Treaty trader/treaty investor: Visa Category: E
We suggest that Brits looking to move to the United States work with a US attorney to prevent errors and delays in their VISA application.
How long can a British Citizen live in the USA?
You can live in the USA as a British citizen for different lengths of time, depending on your visa type.
-Tourist visa (B-2 visa): Allows for temporary visits up to 6 months per entry. Extensions are possible but typically require a valid reason and application.
-Work visa (e.g., H-1B, L-1): Allows for living in the USA as long as the visa remains valid and the individual meets employment requirements. These visas are typically tied to specific job contracts.
-Student visa (F-1 visa): Allows for living in the USA while enrolled in an accredited educational institution. Duration depends on the length of the program of study.
-Green card (Permanent Resident): Allows for indefinite residence and work authorization in the USA. Requires meeting specific criteria and approval by USCIS.
-Dual intent visas (e.g., H-1B, L-1): Some work visas allow for dual intent, meaning the holder can pursue permanent residency (green card) while on the visa.
Can I live in the USA with a British passport?
Yes, as a British citizen, you can visit and live in the USA under certain conditions and visa arrangements. For short visits (typically up to 90 days), you can travel under the Visa Waiver Program (VWP) with an approved Electronic System for Travel Authorization (ESTA). This allows tourism, business, or transit without needing a visa.
If you plan to stay in the USA for a longer period, like for work, study, or to become a permanent resident, you’ll usually need to get the right visa. This could be an employment visa (like H-1B for jobs), a student visa (like F-1 for studying), or a family visa. Some visas even let you aim for permanent residency (getting a green card) while you’re on the visa.
British citizens can also apply for a green card if they qualify. This lets you live and work in the USA indefinitely. How long you can stay and what rules apply depending on your specific visa or green card.
Benefits and drawbacks of holding a US Green Card – for UK citizens
A Green Card, officially known as a Permanent Resident Card, is a document issued by the United States Citizenship and Immigration Services (USCIS) that grants foreign nationals the right to live and work permanently in the United States.
Here are the key points about the Green Card:
-Permanent Residency: It allows the holder to reside in the US indefinitely, as long as they comply with certain conditions.
-Employment Rights: Green Card holders can work in any legal employment in the US without restrictions.
-Path to Citizenship: It is a step toward US citizenship; Green Card holders can apply for naturalization after fulfilling residency requirements, usually five years.
-Travel: Green Card holders can travel outside the US and return, but extended absences might affect their residency status.
-Benefits: Holders are eligible for some social benefits and protections under US law.
Here are just some of the reasons why a UK citizen might avoid applying for a US green card:
-Tax implications: Green card holders must pay taxes on their worldwide income, potentially increasing their tax burden. Even if they have no income during the financial year, US citizens living abroad, including those in the UK, still need to file a tax return and may incur legal fees of as much as £400.
-Residency requirements: Maintaining US residency can restrict travel and ties to the UK
-Cost and complexity: The process is lengthy, complex, and expensive
-Healthcare: US healthcare can be costly compared to the UK’s NHS
-Employment restrictions: Initial restrictions on employment types may apply
-Future uncertainty: Changing US immigration laws create uncertainty
-Cultural differences: Adjusting to US culture and lifestyle can be challenging
-Family: Family obligations may favour staying in the UK
How do Brits go about finding a US home?
Brits use online property portals such as Rightmove and Zoopla to find a home. This is not the case in the United States. Brits will need to find a Realtor (American English term for estate agent) to buy real estate property.
A good realtor will scan the area for the right residential property and schedule appointments with each vendor in the same way as in the UK, no matter which US state you want to live in.
Capital Gains Tax on UK homes when leaving?
Brits with a UK home will benefit from Private Residence Relief (PRR), meaning they do not need to pay Capital Gains Tax (CGT) to HMRC if they have always lived in the property.
Once a UK citizen moves out of their British home, their Private Residence Relief extends for a further 9 months. After 9 months, Private Residence Relief runs out. Any time after this period would be subject to UK CGT payable to HMRC.
They also need to think about Capital Gains Tax in the United States. If they haven’t lived in their UK home for at least 2 out of the past 5 years, they may owe taxes to the US IRS when selling the house.
In the US, there are limits on how much of the profit from selling a UK home can be tax-free: $250,000 for single people and $500,000 for couples. You have to convert the amount of profit from British pounds to US dollars. The IRS will tax the extra amount if the profit exceeds these limits.
Can a UK citizen get a mortgage in America?
Yes, a UK citizen can apply for a mortgage in the USA. However, there are certain considerations and requirements they typically need to meet.
I will stipulate from the outset that the following few paragraphs do not constitute financial advice and should seek out a US mortgage broker who is suitably qualified and regulated.
In our experience of working with many Brits moving to the USA, they will be required to submit proof of income with their mortgage application:
Many Brits will choose to rent a property for 6+ months in the United Kingdom while gathering the required information to get a good mortgage interest rate when buying a UK home.
Many British citizens have opted to release money from their UK homes where the mortgage interest rates are less than in the United States.
Citizens leaving the UK must consider mortgage terms and conditions on a property they wish to keep. There might be restrictions on maintaining the mortgage if they leave the country, especially if the property is to be converted into a buy-to-let.
US mortgage requirements
-Residency and visa status: UK citizens may need to have legal residency in the US, such as a valid visa or a green card (permanent residency), to qualify for a mortgage.
-Credit history: Establishing a credit history in the US is important. UK citizens who have recently moved to the US may need to build or transfer their credit history to demonstrate their ability to manage debt responsibly.
-Income and employment: UK citizens applying for a mortgage in the US will need to provide documentation such as pay slips, employment verification, and possibly tax returns to verify their income.
-Down payment and financial stability: Lenders may require a down payment (American English for deposit), which can vary depending on the type of mortgage and the lender’s requirements. UK citizens should be prepared to provide proof of funds for the down payment and closing costs.
-Bank accounts and financial documentation: UK citizens may need to open US bank accounts and provide financial documentation that meets US standards. This could include bank statements and asset verification, amongst others.
US Individual Tax Indentation Numbers (ITIN) for UK citizens
Brits moving to the United States need to be aware that their UK tax ID numbers (UTR) have no effect in the United States. They will be required to obtain an Individual Tax Identification Number (ITIN)from the Internal Revenue Service.
Am ITIN is a 9-digit number that is used for tax identification. This ITIN number will allow UK citizens to correspond with the Internal Revenue Service (IRS) and submit 1040 tax returns.
Brits can also use their ITIN numbers to apply for mortgages and get bank accounts in the United States.
Brits need to be aware that they may have to file a 1040 tax return to the Internal Revenue Service (IRS) even though they may not have to file a self-assessment tax return in the UK to HMRC.
What is the 183-day rule?
Have you heard of the US 183-day tax residency myth?
Some believe you are only considered a tax resident in the United Kingdom or the United States if you’ve lived there for more than 183 days. However, this is not true.
For British individuals visiting the United States, each day spent there counts towards their tax residency status using a specific formula, and the US IRS considers you a U.S. resident if you were physically present in the U.S. on at least 31 days of the current year and 183 days during three years. This includes counting all days in the current year, one-third of the days from the previous year, and one-sixth of the days from the year before that.
Here’s an example:
A British citizen visits the US for 100 days in 2023, 150 days in 2024, and an additional 130 days in 2025.
The myth of 183 days alone can lead to trouble with the IRS because:
-130 days in 2025
-50 days in 2024 (one-third of 150 days)
-16 days in 2023 (one-sixth of 100 days)
In this scenario, the total days add up to 196, which means the individual is considered a US tax resident and must pay taxes to the IRS on their global income.
Many British citizens make costly mistakes assuming they can rely on the 183-day rule.
Can I access my UK pension if I move to live in America?
Yes, if you live in America, you can still access your UK pension. Here’s what you need to know:
-Type of pension: Whether it’s a state or private pension, you can typically manage it from the US.
-Accessing your pension: UK pension providers usually allow access internationally. You can receive payments directly to your US bank account or through international transfers.
-Tax considerations: Withdrawals may be taxed in both the UK and the US. Learn about tax rules and potential implications for withdrawing pension funds in the USA by contacting a specialist advisor. Tax treaties may help avoid double taxation.
-Currency exchange: When you receive pension payments in British pounds while living in the US, you’ll need to convert them into US dollars. It’s important to think about exchange rates and any fees involved in transferring the funds. Also, your pension could be significantly affected by a sharp decline in the value of the British pound compared to the US dollar. Do you have other funds or resources available to rely on?
Financial Advice: Get advice from a financial advisor or tax expert who understands international finance. They can help you manage your UK pension while living in the US and comply with tax laws in both countries.
How does healthcare insurance work?
Here are the most common ways to get health insurance:
-Through your employer: Many jobs offer health insurance as a benefit. You usually sign up at work during a time called open enrollment.
-Directly from an insurance company: You can buy health insurance on your own either online or through a licensed insurance agent or government-run marketplaces like healthcare.gov. This is called individual health insurance; you can apply for it anytime during the year.
-From the government: You can get health insurance through the Federal Marketplace (healthcare.gov) or your State’s Marketplace. These were set up as part of the ACA (Affordable Care Act). You can sign up once a year during open enrollment.
-Medicare, Medicaid, and CHIP are government health insurance plans. They’re available to people who meet specific income or health requirements.
How can Optimise Accountants help with a move to the US
Contact us to learn how we can support your journey to the US.
We provide tailored advice from managing tax affairs efficiently to the everyday.
Call 0115 939 4606 or book a one-to-one “Moving to the US” consultation with Simon Misiewicz as seen on You Tube.