Are you a British expat who's recently relocated to Miami or South Florida? Maybe you're considering the move and wondering how UK-US tax obligations actually work? Or perhaps you've been living in Florida for years but aren't entirely confident your tax situation is properly handled—you've heard terms like FBAR, PFIC, and foreign tax credits but your current accountant hasn't really explained what they mean for you?
You've found exactly the resource you need, and I'm genuinely pleased you're here.
I'm writing this comprehensive guide with one clear purpose: to meet you, introduce Whittmarsh Tax & Accounting, and earn the opportunity to show you how proper international tax planning eliminates the stress, penalties, and costly mistakes that plague British expats who don't have specialized guidance.
We specialize in helping British expats in Miami, Aventura, and throughout South Florida navigate the extraordinarily complex world of UK-US tax compliance—including FBAR reporting, PFIC taxation nightmares, dual tax obligations, treaty benefits, foreign pension reporting, and the sophisticated strategies that prevent you from being absolutely destroyed by international tax rules that generic CPAs don't understand.
Now, I understand you came here for practical information about living in Miami as a British expat. And I'm absolutely going to deliver that—you'll learn about establishing Florida residency, the best neighborhoods for UK expats, where to find proper tea and British products, and what the lifestyle transition actually looks like.
But here's the critical information your current accountant probably isn't telling you: British expats face some of the most complex tax situations possible under U.S. law, and making mistakes with FBAR reporting, PFIC investments, or foreign pension treatment can result in penalties that literally exceed the value of the accounts themselves.
Most British expats in South Florida are either completely non-compliant with U.S. tax obligations (creating enormous penalty exposure) or are massively overpaying taxes because their CPA doesn't understand international taxation. Generic American accountants have never dealt with UK pensions, don't understand PFIC rules, treat foreign bank accounts incorrectly, and miss treaty benefits that could save you thousands annually.
The consequences range from IRS penalties that can reach $10,000 per account per year for FBAR violations, to 50%+ tax rates on UK investments that should be taxed at 15-20% if structured correctly, to complete loss of retirement savings through improper UK pension distributions.
That's the problem we solve at Whittmarsh Tax & Accounting.
We don't just prepare basic tax returns for Americans with simple W-2 income. We provide comprehensive international tax planning specifically designed for British expats who need specialized expertise in UK-US tax treaty provisions, foreign account reporting, PFIC taxation, pension planning, and the hundreds of technical rules that separate compliant expats from those facing financial disaster.
First, I'm going to walk you through practical information about living in Miami as a British expat—the best neighborhoods, establishing residency, where UK expats congregate, finding British products and culture, and what the lifestyle transition actually involves.
Then, I'm going to explain the tax compliance requirements that British expats absolutely must understand to avoid devastating penalties and overpayment. You'll learn about FBAR reporting deadlines, why UK unit trusts and ISAs are tax nightmares in the U.S., how UK pensions are taxed, what foreign tax credits actually mean, and the specific strategies that keep you compliant while minimizing your tax burden.
But here's my direct ask: if you're a British expat in South Florida, if you have UK bank accounts or investments, if you receive a UK pension or have retirement accounts in Britain, if you're earning more than £100,000 annually, or if you've never had a CPA with actual international tax expertise review your situation—we need to talk immediately.
Schedule a consultation with Whittmarsh Tax & Accounting, and let's perform a comprehensive review of your international tax compliance to identify problems before they result in IRS penalties and identify opportunities to reduce your overall tax burden.
You can absolutely read this guide and continue with your current accountant who nods along when you mention UK investments but doesn't actually understand PFIC taxation. But if you're serious about proper compliance and minimizing taxes as a British expat—if you want CPAs who specialize in UK-US tax situations—we need to have a conversation.
Call us at (305) 790-5604 or book your British expat tax consultation here.
Miami has become one of the premier destinations for British expats relocating to the United States. The combination of no state income tax, year-round warm weather, international culture, direct flights to London, and vibrant lifestyle has attracted thousands of UK citizens to South Florida.
Let's explore where British expats are establishing their new lives in Miami.
Why British Expats Choose Aventura:
Aventura has emerged as the neighborhood of choice for international residents including substantial British expat populations. The area offers luxury high-rise living, Aventura Mall (one of America's premier shopping destinations), excellent restaurants, A-rated schools, and a truly international community where British accents are common.
Aventura provides the perfect combination of American lifestyle with international sophistication. You'll find British expats throughout the luxury condominiums lining Biscayne Bay, from Trump towers to Williams Island to Turnberry Ocean Colony. The neighborhood offers walkability, security, and the type of upscale urban lifestyle that appeals to successful Brits relocating for business or retirement.
The proximity to Fort Lauderdale airport (20 minutes) and Miami International Airport (30 minutes) makes travel back to the UK convenient. Direct flights to London Heathrow from both airports mean you're never more than 8-9 hours from home.
Tax Consideration for Aventura Residents: Establishing legitimate Florida residency requires more than buying property in Aventura—you need to demonstrate intent to make Florida your domicile through multiple factors including Florida driver's license, voter registration, homestead exemption, location of important documents, and actual time spent in Florida. Many British expats maintain UK properties while living in Florida, creating potential issues with tax residency. At Whittmarsh Tax & Accounting, we help British expats establish proper Florida residency while managing their UK tax obligations. Our comprehensive international tax services include residency planning, dual-country tax compliance, and treaty benefit optimization.
The British Expat Community in Sunny Isles:
Sunny Isles Beach, immediately north of Aventura, offers luxury oceanfront living in high-rise towers that attract international buyers including significant British expat populations. The area provides direct beach access, resort-style amenities, and the type of luxury living that appeals to wealthy UK relocators.
Sunny Isles features iconic towers including Trump, Porsche Design, Jade, Armani Casa, and other ultra-luxury developments offering five-star services, private restaurants, and the kind of luxury that makes the transition from London's prime neighborhoods seamless. The area maintains an international character where British expats fit naturally into the community.
The beachfront location provides the South Florida lifestyle that draws many Brits to Miami—year-round beach weather, outdoor activities, and escape from British winters. Morning runs on the beach replace grey London mornings, and the lifestyle transformation is dramatic.
UK Pension and Investment Planning: Many British expats relocating to Sunny Isles maintain UK pensions and investments. This creates complex U.S. tax obligations including FBAR reporting for foreign accounts, PFIC taxation on UK mutual funds and ISAs, and proper treatment of UK pension distributions. Generic U.S. accountants make devastating mistakes with these issues. We specialize in helping British expats properly report and minimize taxes on UK financial assets while maintaining full compliance.
Why Wealthy British Expats Love Bal Harbour:
Bal Harbour and adjacent Bay Harbor Islands offer intimate, exclusive communities popular with wealthy British expats seeking smaller-scale luxury compared to larger Aventura towers. Bal Harbour Shops—one of America's most exclusive luxury shopping destinations—provides the high-end retail experience that appeals to affluent Brits.
The area offers oceanfront luxury condominiums, single-family waterfront estates, and a village atmosphere despite the urban Miami location. The communities maintain old-money elegance that resonates with British expats from traditional UK neighborhoods.
British expats in Bal Harbour appreciate the proximity to excellent restaurants, cultural attractions, and the type of sophisticated lifestyle they enjoyed in London, Kensington, or the Cotswolds. The area provides luxury without the crowds or nightlife scene of Miami Beach.
Foreign Tax Credit Optimization: British expats in high tax brackets face both UK and U.S. tax obligations on their worldwide income. The UK-US tax treaty provides foreign tax credit mechanisms to prevent double taxation, but claiming these credits correctly requires expertise. Many expats overpay taxes by tens of thousands annually because their accountant doesn't properly calculate foreign tax credits. At Whittmarsh Tax & Accounting, we specialize in maximizing foreign tax credits to minimize your overall tax burden across both countries.
The British Connection to Coral Gables:
Coral Gables' Mediterranean Revival architecture, tree-lined streets, and traditional elegance appeal to British expats who appreciate architectural significance and old-world character. The area offers single-family estates, gated communities, and the type of established neighborhoods that resonate with Brits from traditional UK locations.
Coral Gables provides excellent schools, walkable village centers, proximity to downtown Miami for business, and an atmosphere of permanence and tradition that many British expats find comforting during their transition to American life.
The neighborhood attracts British expats establishing family lives in Florida—those with children seeking excellent schools, those wanting traditional neighborhoods over high-rise living, and those planning to put down permanent roots in South Florida.
UK Estate and Inheritance Tax Planning: British expats maintaining UK assets face potential UK inheritance tax exposure (40% over £325,000 threshold). Additionally, U.S. estate tax applies to worldwide assets for U.S. residents. Proper planning requires coordinating UK and U.S. estate tax rules, utilizing treaty provisions, and structuring asset ownership to minimize both countries' estate taxes. This is extraordinarily complex and requires true international expertise. We help British expats develop comprehensive estate plans that minimize taxes in both countries.
The British Arts and Creative Community in the Grove:
Coconut Grove's artistic character, waterfront location, and relaxed atmosphere attract British expats from creative industries, arts, media, and those seeking a more bohemian lifestyle than Aventura's luxury towers or Coral Gables' formality provide.
The Grove offers a village atmosphere within urban Miami, with art galleries, independent restaurants, sailing culture, and a distinct identity. British expats appreciate the neighborhood's character and the creative community that gathers here.
The area appeals to British writers, artists, musicians, and creative professionals who want South Florida weather and lifestyle without sacrificing cultural substance. The neighborhood maintains authenticity that resonates with Brits seeking genuine community rather than merely luxury amenities.
Self-Employment and Business Income Tax Planning: Many creative British expats work as freelancers, consultants, or run their own businesses. This creates complex U.S. tax obligations including self-employment taxes (15.3% on top of income taxes), quarterly estimated payments, and proper business expense deduction. Additionally, if you maintain UK clients or business activities, questions arise about which country taxes which income. At Whittmarsh Tax & Accounting, we help self-employed British expats structure their businesses optimally, minimize self-employment taxes, and properly allocate income between UK and U.S. for tax purposes.
British Stores and Products:
British Pubs and Restaurants:
British Expat Groups and Communities:
Watching British Television:
British expats face one of the most complex tax situations possible because both the UK and U.S. tax based on different criteria, creating overlapping obligations that require sophisticated planning to manage properly.
UK Tax Residency Rules:
The UK uses the Statutory Residence Test (SRT) to determine tax residency. Key factors include:
Most British expats moving permanently to Florida will lose UK tax residency, meaning the UK no longer taxes their worldwide income. However, UK-source income (rental properties, pensions, dividends from UK companies) may still be subject to UK taxation even for non-residents.
U.S. Tax Residency Rules:
The U.S. taxes residents on worldwide income using either:
British expats with green cards or spending substantial time in Florida are U.S. tax residents, requiring U.S. tax returns reporting worldwide income including all UK income, accounts, and assets.
The Dual Taxation Problem:
Without proper planning, British expats can face taxation by both countries on the same income. The UK-US tax treaty provides relief mechanisms, but utilizing them correctly requires expertise.
At Whittmarsh Tax & Accounting, we specialize in managing dual tax obligations for British expats. We ensure proper treatment under the treaty, maximize foreign tax credits, and minimize your overall tax burden across both countries.
FBAR (Foreign Bank Account Report) represents the single biggest compliance failure for British expats, and violations carry penalties that can literally exceed the value of your accounts.
What FBAR Requires:
Any U.S. person (including green card holders and U.S. tax residents) with foreign financial accounts totaling more than $10,000 at any point during the year must file FinCEN Form 114 (FBAR) annually by April 15th (automatic extension to October 15th).
"Foreign financial accounts" includes:
FBAR Penalties Are Devastating:
A British expat with three UK bank accounts, a brokerage account, and an ISA who hasn't filed FBAR for five years faces potential penalties of $250,000+ even for non-willful violations.
Real Example:
British expat relocated to Miami in 2019 with green card. Maintains UK accounts:
Never filed FBAR because generic U.S. accountant never asked about foreign accounts.
IRS discovers non-compliance in 2024. Penalties for 2019-2023 (5 years):
These aren't hypothetical penalties—IRS regularly assesses them against British expats who didn't know about FBAR requirements.
The Solution: Immediate Compliance
If you're behind on FBAR, the IRS provides Streamlined Filing Compliance Procedures allowing you to catch up with reduced penalties. But you must act before the IRS contacts you—after IRS contact, these remedial programs become unavailable.
We help British expats immediately achieve FBAR compliance, utilize streamlined procedures if behind, and implement systems ensuring ongoing compliance every year.
PFIC (Passive Foreign Investment Company) taxation represents the most complex and punitive tax regime in the U.S. tax code, and it applies to nearly all UK investments that British expats hold.
What Are PFICs?
PFICs include most foreign mutual funds, unit trusts, investment trusts, and collective investment schemes. For British expats, this means:
Essentially, if you have UK investments in anything resembling a mutual fund, you're likely dealing with PFICs.
How PFIC Taxation Destroys Returns:
Without proper elections, PFIC income faces:
Example:
British expat holds UK unit trust in ISA. Bought in 2015 for £50,000, sold in 2024 for £100,000 (£50,000 gain).
UK Tax: £0 (ISAs are tax-free in UK)
U.S. Tax Without PFIC Planning:
U.S. Tax With Proper PFIC Planning:
The Critical Mistake:
Generic U.S. accountants don't identify PFICs. They see "foreign investment account" on your information and report it as a regular investment, missing the PFIC designation entirely. You file incorrectly for years, then when IRS catches the error, you face back taxes, penalties, and interest.
At Whittmarsh Tax & Accounting, we identify all PFIC holdings, determine optimal tax treatment, make proper elections when beneficial, and ensure ongoing compliance. We also help British expats restructure investments to minimize PFIC problems going forward—often by transitioning to U.S.-domiciled funds or individual stock portfolios that avoid PFIC treatment entirely.
UK pensions create enormously complex U.S. tax issues that generic accountants handle incorrectly, costing British expats tens of thousands unnecessarily.
Types of UK Pensions:
U.S. Tax Treatment:
The UK-US tax treaty provides specific rules for pension taxation, but applying them correctly requires expertise:
FBAR and FATCA Reporting for Pensions:
UK pension accounts often require FBAR reporting. Many British expats incorrectly believe pensions are exempt from FBAR—they're not, though some pension types may qualify for exceptions depending on specific structures.
The Lump Sum Distribution Problem:
UK pensions typically allow taking 25% tax-free lump sum at retirement. However:
Example:
British expat in Miami takes £200,000 lump sum from UK pension.
Without Proper Planning:
With Proper Planning:
We help British expats plan UK pension distributions to minimize U.S. taxes, ensure proper treaty elections are made, and coordinate timing of distributions with other income to minimize overall tax burden.
Many British expats maintain UK properties, either as investments or keeping a home for potential return. This creates dual-country tax obligations requiring careful management.
UK Rental Income:
UK rental income is taxable in both countries, but the treaty prevents double taxation through foreign tax credits:
UK Property Expenses:
Deductible expenses differ between countries:
UK Property Capital Gains:
Selling UK property creates capital gains taxable in both countries:
Non-Resident UK Landlord Obligations:
UK requires non-resident landlords to either:
Many British expats living in Florida don't realize they must notify HMRC of non-resident status and fulfill UK reporting requirements even while living permanently in Miami.
At Whittmarsh Tax & Accounting, we manage dual-country reporting for UK property owners, ensure proper treatment in both countries, maximize allowable deductions in each jurisdiction, and coordinate timing of property sales to minimize combined tax burden.
Sophisticated international tax planning goes far beyond mere compliance—it involves proactive strategies that minimize your combined UK-US tax burden.
Strategy 1: Timing UK Pension Distributions
Taking UK pension distributions in years with lower U.S. income minimizes the tax rate on those distributions. Coordinate pension timing with your overall income planning.
Strategy 2: Restructuring UK Investments
Transitioning from UK-domiciled funds (PFICs) to either:
Strategy 3: UK Property Timing
Selling UK properties in years when you're low-income in both countries minimizes capital gains taxes. Alternatively, holding UK property until death may provide basis step-up under U.S. rules while potentially avoiding UK inheritance tax through treaty provisions.
Strategy 4: Establishing Legitimate Florida Residency
Properly documenting Florida residency ensures you're not subject to UK taxation on worldwide income. This requires:
Strategy 5: Entity Structuring for Business Activities
British expats running businesses or holding investments may benefit from entity structuring that optimizes taxation across both countries. This requires analysis of:
At Whittmarsh Tax & Accounting, we develop comprehensive international tax strategies for British expats that minimize overall taxation across both countries while maintaining full compliance with all reporting obligations.
Let's quantify the actual costs of inadequate international tax planning for British expats.
Example: British Expat in Aventura
Profile:
Costs of Inadequate Planning:
FBAR Non-Compliance (5 years):
PFIC Taxation Errors:
UK Pension Distribution Errors:
Missed Foreign Tax Credits:
Total Cost: $230,000+
This represents actual money lost through non-compliance penalties and overpayment of taxes over just five years. The difference between generic CPA services and specialized international tax expertise is enormous for British expats.
Do I need to file U.S. taxes if I have a green card but live part-time in the UK?
Yes, green card holders are U.S. tax residents regardless of where they live, requiring U.S. tax returns reporting worldwide income. This creates potential dual taxation with the UK, requiring careful treaty analysis and foreign tax credit planning. Many British expats incorrectly believe they only file in their country of primary residence—this is wrong. At Whittmarsh Tax & Accounting, we help green card holders manage dual filing requirements and minimize overall tax burden.
What is FBAR and do I really need to file it?
FBAR (Foreign Bank Account Report) must be filed by any U.S. person with foreign financial accounts totaling over $10,000 at any point during the year. This includes all UK accounts—checking, savings, investments, ISAs. Penalties for non-filing are devastating—up to $10,000 per account per year for non-willful violations, or 50% of account balances for willful violations. Yes, you absolutely must file FBAR if you have UK accounts.
Are UK ISAs tax-free in the United States?
No, ISAs receive no special treatment under U.S. tax law. The U.S. taxes all investment income regardless of UK tax treatment. Additionally, ISAs invested in funds are likely PFICs, creating even more onerous taxation. This shocks British expats who assume ISAs' UK tax-free status translates to the U.S.—it doesn't. We help British expats understand how ISAs are taxed in the U.S. and whether maintaining them makes sense.
How are UK pensions taxed in America?
UK private pension distributions are generally taxable in the U.S. for U.S. residents. The UK-US treaty provides specific rules, but applying them correctly is complex. The UK's 25% tax-free lump sum may not be tax-free in the U.S. without proper treaty elections. UK state pensions may be taxable only in the UK (if you're a UK citizen) or in the U.S. (if you're a U.S. citizen). This requires analysis of your specific situation and proper treaty application.
What are PFICs and why do they matter?
PFICs (Passive Foreign Investment Companies) include most UK mutual funds, unit trusts, and investment trusts. PFIC taxation is extraordinarily punitive—gains taxed at ordinary income rates (up to 37%) with interest charges, often resulting in 50%+ effective tax rates. Proper PFIC elections or restructuring investments can dramatically reduce taxation. Most generic U.S. accountants don't identify PFICs, causing years of incorrect reporting and excess taxation.
Can I keep my UK bank accounts after moving to Miami?
Yes, you can maintain UK accounts, but you must report them on FBAR annually and they'll be taxable in the U.S. Some British expats close UK accounts to simplify compliance, while others maintain them for convenience when visiting the UK or managing UK affairs. The decision depends on your specific situation, but maintaining UK accounts requires proper U.S. reporting.
Do I pay UK taxes if I'm living permanently in Florida?
Once you establish U.S. tax residency and break UK tax residency, the UK generally doesn't tax your worldwide income. However, UK-source income (rental property, pensions, dividends from UK companies) may still be taxed by the UK even for non-residents. The UK-US treaty prevents double taxation through foreign tax credits, but you may file returns in both countries depending on your income sources.
What's the deadline for FBAR filing?
FBAR is due April 15th with automatic extension to October 15th. Note that FBAR is separate from your tax return—it's filed with FinCEN, not the IRS, through the BSA E-Filing System. Missing the deadline doesn't provide the same penalty relief as a late tax return—FBAR penalties apply even for inadvertent late filing.
Should I move my UK investments to U.S. accounts?
Often yes, especially if UK investments are PFICs. U.S.-domiciled mutual funds avoid PFIC treatment, dramatically simplifying taxation and reducing tax rates. However, selling UK investments may trigger capital gains in both countries, requiring careful planning. We analyze whether restructuring investments makes sense considering exit costs versus ongoing PFIC taxation.
Can generic U.S. CPAs handle UK-US tax situations?
Usually no. Generic U.S. CPAs handle standard W-2 employees with simple situations. They don't understand PFIC taxation, proper FBAR filing, UK-US treaty provisions, or international tax planning. Many don't even ask about foreign accounts or investments. British expats need CPAs who specialize in international taxation and specifically understand UK-US issues. The cost of using generic CPAs is devastating—penalties for non-compliance or massive overpayment of taxes.
You now understand the enormous complexity of UK-US tax compliance and the devastating consequences of getting it wrong. The question is: what will you do with this knowledge?
You have two clear options:
Option 1: Continue with your current generic CPA who doesn't understand PFIC taxation, doesn't properly file FBAR, doesn't apply treaty provisions correctly, and is leaving you exposed to hundreds of thousands in potential penalties or overpayment. Keep hoping you won't get caught or that somehow everything will work out.
Option 2: Schedule a consultation with Whittmarsh Tax & Accounting and get immediate comprehensive review of your international tax compliance. Identify FBAR violations before IRS does. Discover PFIC problems that are costing you thousands annually. Properly structure UK pensions and investments. Maximize foreign tax credits. Work with CPAs who specialize in British expat taxation.
The consultation is straightforward. We'll review your UK accounts and investments, analyze your FBAR compliance status, identify any PFIC holdings, evaluate UK pension treatment, review foreign tax credit calculations, and provide immediate action items for compliance and optimization.
This is not optional. If you're a British expat in Florida with UK accounts and you're not properly compliant, you're facing penalty exposure that could financially devastate you.
Book your British expat tax consultation immediately: https://www.whittmarsh.com/pricing-how-it-works
Or call us directly at (305) 790-5604
Our Aventura office specializes in serving British expats throughout South Florida. We understand UK-US tax issues because this is our specialty—we work with British expats every day and understand the unique challenges you face.
We specifically target British expats in South Florida who need specialized international tax expertise. Our ideal clients include:
We provide comprehensive international tax services including:
Our mission is helping British expats in South Florida achieve full compliance while minimizing their combined UK-US tax burden through sophisticated international planning.
If you're a British expat in South Florida, we need to talk. The cost of improper international tax compliance is simply too high to risk.
Visit us online at www.whittmarsh.com
Whittmarsh Tax & Accounting serves British expats throughout Miami, Aventura, Fort Lauderdale, and all of South Florida. We specialize in UK-US tax compliance, FBAR filing, PFIC taxation, foreign tax credits, UK pension planning, and the complex international tax issues that British expats face when relocating to Florida.