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Important Tax updates for US Citizens in the UK

Posted: March 27, 2018

US Tax Updates 2018:

On 22 December 2017 President Trump signed the Tax Cuts and Jobs Act.

https://www.congress.gov/bill/115th-congress/house-bill/1/text

Some of the key highlights are as follows:

  1. Standard Deductions are increased to $12,000 for single filers and $24,000 for joint filers from $6,350 and $12,700 respectively.

  2.  Personal exemptions have been suspended.

  3. The maximum corporate tax rate has been cut from 35% to 21%.

  4. The Lifetime Estate Tax exemption has been doubled to $11.2m for individuals and $22.4m for couples.

  5. Some itemised deductions have been restricted or removed including moving expenses (apart from military). Home mortgage interest relief will be restricted to the first $750,000 of the loan – for new mortgages from 2018.

  6. Itemised deductions remain for charitable donations, retirement savings and student loan interest – the provision for medical expenses has been expanded to allow expenses over 7.5% of Adjusted Gross Income, where it was 10% previously.

  7. The fine levied for Americans under Obamacare for not obtaining health insurance coverage has been repealed.

If you have any US Tax related queries please get in touch:

Email: USTax@burgesshodgson.co.uk or Call: 01227 454627

Or find more about our U.S. Tax Services here:

www.burgesshodgson.co.uk/our-services/tax-planning/usa-tax-services/