GeoBlue International Health Insurance

United Kingdom Expat Forum

US and UK tax on bonus

Post New Topic Newest First
6/26/2021 05:08 EST

Expat Forum For People Moving Overseas And Living Abroad
Search Community

Expat Tax
US expat in UK taxes on bonus
Jump to Latest
1 - 1 of 1 Posts

Joined 44 m ago · 1 Posts
Discussion Starter · #1 · 33 m ago

Hey there,

My wife and are US citizens currently living in the UK. My wife, who works for a US company that just got acquired, is going to get paid out for her shares. The agreement made by the purchasing company is paying out shareholders (who are all employees) as a cash bonus on the next pay cycle. This is bad for us from my understanding because though bonus in the US are taxed at a flat 22%, the UK taxes it as income at whatever bracket it falls under for the year. Which would put the full amount at 47%, like I said, bad.

My questions are, is there a way to Lowe's this tax responsibility in the UK? If there isn't, and we decided to leave the UK immediately back to the US, would we then be able to have split year treatment on the income for the year? How does split treatment work. Is it based on the entire year's income and the portion of tax year spent in the UK?

Any advice would be helpful. This is a large payout and a difference between 22% and 47% is a difference in many tens of thousands in taxes.


Post a Reply


Cigna Expat Health InsuranceExpatriate Health Insurance

Get a quote for expat health insurance from our partner, Cigna Global Health.
Get a Quote

UK Forum UK Forum
Join our UK forum to meet other expats and talk about living in UK.

Living in UK GuideLiving in UK Guide

Expats in the United Kingdom live in one of the most sought after destinations in the world. Its four countries - England, Wales, Scotland and Northern Ireland - offer expats a broad range of expatriate experiences.

Help other expats and newcomers by answering questions about the challenges and adventures of living in UK.

Moving to UKMoving to UK Guide

Our guide to moving to UK with lots of advice from expats on the ground.

Healthcare in UKHealthcare in UK

Expats in the U.K. are able to utilize the public health care system, which is managed by the NHS. Many expats want to have private health insurance to help reduce wait times and several other reasons.

5-Tips-for-Living-in-St-Albans,-England5 Tips for Living in St Albans, England

Expats living in St Albans live in a suburb with a very easy commute to London. Almost all of the areas within St Albans are desirable. In addition to a lot of options for enjoying the great outdoors, there's plenty of shopping, dining, and pubs.

5-Tips-for-Living-in-Hassocks,-England5 Tips for Living in Hassocks, England

Expats living in Hassocks live in a suburb with a relatively easy commute to London. It's proximity to the South Downs and Brighton make Hassocks a small town worth considering a London suburb.

5-Tips-for-Living-in-Gerrards-Cross,-England5 Tips for Living in Gerrards Cross, England

Expats living in Gerrards Cross live in a suburb with a relatively easy commute to London. As with other suburbs close to London, you will pay a premium for the easy access.

5-Tips-for-Living-in-Sevenoaks,-England5 Tips for Living in Sevenoaks, England

Expats in the UK who want to live outside of London but work in the city might find Sevenoaks in Kent to be the perfect place. While it offers a great commute time by train, you will pay a premium for the convenience.

Copyright 1997-2021 Burlingame Interactive, Inc.

Privacy Policy Legal