I have lived in England now some 38 plus years and I met my husband in 1978. During our time together we have travelled all over England and Scotland and had a wonderful time. Upon returning home to the US, having travelled the length of the UK, I felt in many ways that I had gained more knowledge about the UK over the three months than many Brits have in a life time! Because I loved England and my soon-to-be husband, it was not a difficult choice to relocate! I really enjoy my life here and embrace change and all the differences, of which there are a many!

Our grown up children are the best of both of us - a real combination. My daughter calls me Mom and my son calls me Mum, it’s just how they like it! I found going back to the US with our small children tough-going, and then facing the return flight back to our home in the UK was awful. Eventually these trips became less and less and I invited family and friends to come to us! My two children are grown up now, so they more or less go off on individual vacations with friends, so I no longer have to deal with planning, insurance, flights and hauling luggage and children across two countries! I must add that due to living in the UK, European travel is their oyster.

We have kept up as much as possible with many traditions and holidays such as the 4th of July & Thanksgiving, all of which we all enjoy. I neglected to mention that my husband was from an Eastern European background, and his parents were Orthodox, and I had no idea until many, many years after our first Christmas together that our first Christmas Tree was his first tree ever!

My family really enjoy the holiday meal traditions, and all love to eat a large plate of the poultry, complemented with my mother’s recipe for stuffing. I do have to make an apple pie as well as a pumpkin pie to please all of our palates.

The years pass quickly and life does get busy, and we can easily forget the family we do not see on a daily basis. Sadly, in the last 10 years all the senior members of my family have passed away. The last member left my birth state and the place I always returned to, and where I felt that Dulles Airport was the welcome home sign for just me! I must admit having the last remaining relative leaving really did hit me hard and I shed a tear or two, as silly as that might seem. I do not foresee returning to my birth state anytime soon, and feel if I do return to the US in the future it will be to a warmer state to start new memories.

I cannot image living anywhere other than the UK and I look forward to growing old here with my family. I am very proud of my roots and my birthplace and enjoy my lifestyle. I am happy to say my life is a very healthy balance of both. I do not get as home sick as much as I used too. I am not sure why, but think perhaps because I am settled and happy with a grown up family, I have put down deep roots here.

I attended Thanksgiving at St Paul’s a few years ago and really did enjoy it. I found it to be very moving emotionally and spiritually, and my daughter was moved also. I found her watching me and others with me, and she was crying. I asked her if she was ok, and she said “Mom I loved seeing you with other Americans and seeing the strong connection that you all seem to share. It was overwhelming to see the tears in your eyes as you were singing”. She went on tell me that it hit her all of the sudden what her Mom had left behind to relocate to the UK.

That was a magical moment for me and told me all I needed to know, I made the right decisions in my life to relocate, marry and have my two children. My blessing is to have a daughter who would share such a lovely moment with me. I feel that it has been my children’s upbringing with family, friends on both sides of the Atlantic that made them such interesting, understanding and most of all, adaptable people.

I made a choice in 1979 to relocate and I have never looked back. I enjoy my life, and I adore the changing seasons, and even find the rain moody and reflective! I have, luckily for me, always liked tea, and remember the awful stuff served on British Rail in plastic cups (milk and hot water). We now have many fabulous coffee shops, of which there were none in 1978 - things have much improved!

I look forward to one day creating my very own (English) country garden, and hope one day to share some flowery pictures with you all!

Article by Debbie Djukic.

Whilst married and civil partners are still the most common family type in the UK and also the USA, more and more couples are choosing to live together outside of marriage. Whilst some US states recognise such unions as common law marriages, that term has no meaning in the legal system of England and Wales. It’s a well-quoted, but inaccurate urban myth.

This can come as a nasty shock to some cohabitees at the end of their relationship, and there is widespread misunderstanding about the gap in legal protection.

If a married couple separates, they can both make wide-ranging financial claims against each other under the Matrimonial Causes Act 1973. Orders can cover maintenance, property and even split a pension. The judge at Court has wide discretion to make orders to ensure that both husband and wife and their children will be properly provided for, and generally no one walks away empty handed.

But there is no unified body of law in this country that protects cohabitants, and it is possible for couples to live together for decades and raise children together, then for the financially weaker partner to be left in difficulty if the relationship finishes. There is no right to maintenance or other personal claims between former cohabiting partners, and this can cause severe injustice after a long relationship. This is currently the focus of a campaign for reform and you may have seen mention of this in the national press.

However, the law does offer some protection to cohabitees’ rights to live in or share in the value of their home via the Trusts of Land (Appointment of Trustees) Act.

When couples buy a home together in this country, they will be asked by their conveyancing solicitors if they want to own the property as Joint Tenants or Tenants in Common. This is important, and the terms have difficult meanings and implications that they do in some states of the US.

In England and Wales, Joint Tenants own equal shares and have automatic survivorship rights. This mean that if one owner dies, the survivor would automatically inherit the deceased’s share in the property. Tenants in Common can own unequal shares, and they do not have automatic survivorship rights. That means if one partner dies, their share would become part of their testamentary estate to be divided up according to their Will.

If cohabiting partners are making different and unequal financial contributions towards the property, it is absolutely vital that the documents prepared at the time of the purchase describe them as Tenants in Common, and set out what their respective shares in the property are agreed to be.

This can be done either on the Land Registry forms at the time of purchase or in a separate contract called a Deed of Trust. A Deed can also set out what the owners want to happen in the future in respect of additional financial contributions (perhaps if one partner pays for an extension on the home) and/or what they have agreed should happen if they separate and whether one should have the right to buyout the other’s share in the future or the circumstances in which the property should be sold.

It’s never too late to deal with this, but it must be done properly – a verbal agreement or a scribbled note on the back of the cornflakes packet is not enough. I have a specialist practice in cohabitee cases and I see many clients who were not aware that they needed to formally deal with their agreement, and they can end up in litigation as a result. But the law can assist, and this is where the Trusts of Land Act comes into play.

This is a complicated area of property law and it is easy for non-lawyers to become confused by the plethora of legal terms that they may meet, such as constructive trust, resulting trust, proprietary estoppel and beneficial interests.

But essentially the law provides that if the ownership of the property does not properly reflect either the parties’ joint agreement about their respective shares, or one party’s unilateral belief that they have a share but where the home is registered in the name of their partner only, a claim can be made under the Act. The Court will try to rectify the situation and can declare the proper split of the equity in the property (i.e. who owns the balance of the value after the mortgage has been deducted) or order a sale.

There is also another option if the couple have children and a claim could be made under Schedule 1 of the Children Act 1989, for an order providing that the parent with care of the children can stay in the property until the children reach adulthood, or that the financial stronger party has to assist them with the cost of rehousing. This would be on a trust basis, and the money would revert back to the other parent when the children are grown. The Court can also make orders relating to maintenance and other expenses such as school fees.

This is again a complicated area of law and it is essential to take legal advice.

Article by Judith Fitton, Partner in the Family Department of Mundays LLP in Cobham and has 23 years’ experience in the field of high net worth divorces. She also has a niche practice in cohabitee matters and disputes between non-married couples as to their property interests or their children. Judith is accredited as a specialist in this field by Resolution and mentioned in The Legal 500 UK 2017 as being “‘thorough, to-the-point, very focused and clear”.

Visit www.mundays.co.uk

Please come and visit our stand at THE AMERICAN FINANCIAL & LEGAL SEMINAR on Monday 29th January at Smith & Wollensky, 1-11 John Adam Street, London, WC2. We will be happy to discuss how we can help you with any legal issues you may have.

Eight Questions To Ask Yourself If You Are An American Living In The UK

As an American living in the UK, almost nothing related to your financial affairs is easy. The consequences of seemingly simple decisions – such as how to pay for a new home or purchase a mutual fund - may create unnecessary tax charges and complexities. Americans resident in the UK need to make financial decisions considering the interplay between two jurisdictions and the impact across the whole of their investment and wealth management spectrum.

Below are eight common questions which can help you identify where the complexities in your financial lives may exist and steps you can take to address them.

Q1. How long have you been resident in the UK?

Most Americans living in the UK are considered to be non-domiciled individuals for UK income tax purposes. In the first seven years that you live in the UK, non-domiciled individuals have the ability to pay tax in the UK on what is called the Remittance Basis. This means that you will pay UK tax on income earned in the UK and any untaxed income deemed to be brought onshore to the UK. However, after seven tax years, most non-domiciled individuals begin paying tax in the UK on worldwide income as it arises as the alternative involves paying an annual Remittance Basis Charge. And, after fifteen tax years, individuals generally lose the ability to choose taxation under the Remittance basis altogether. This results in Americans reporting worldwide income in both the US and the UK and claiming a tax credit, where appropriate, in the allowed jurisdiction. Once an individual is paying tax in the UK on a worldwide basis, the UK will tax any mutual fund or exchange traded fund investments held in the US at income tax rates instead of capital gains taxes, unless the fund investment has applied for something called UK reporting status with HMRC. As such, it is important to consider a review of your US investment portfolio in the years leading up to being taxed on the Arising Basis, to ensure that your US investment portfolio doesn’t unknowingly attract unfavourable tax rates in the UK.

Q2. Have you ever invested in Mutual Funds or ETFs in the US? Do you still have those investments?

Many Americans who move to the UK do so with the intention of staying for just a few years. Often two years turn into five years which turn into ten years or more. As noted earlier, after being resident in the UK for more than seven tax years, many Americans begin paying tax in the UK on what is called the Arising Basis. This means that you are reporting your worldwide income to the UK tax authorities as it arises regardless of whether that income is remitted into the UK or not. Unless a non-UK collective investment has gone through a special reporting process with HMRC, the UK will view any gains earned on funds outside of the UK as Offshore Income Gains (OIG). This means that any gains earned on a fund without UK reporting status is subject to UK tax based on your UK income tax band as opposed to the more favourable capital gains tax rates. Additionally, any OIG assets do not receive the benefit of the UK capital gains tax allowance. As such, in order to keep your financial affairs more flexible, it often makes sense to review the structure of your investments before beginning to pay tax in the UK on the Arising Basis and make any appropriate changes. HMRC publishes a list of offshore funds that have undergone the UK reporting status process.

Q3. Do you have any investments in Unit Trusts, Investment Bonds, ISAs, Collective Funds or ETFs either in the UK or anywhere else outside the US?

Once Americans gather assets outside of the US, they will often begin looking to invest in non-US based investments. However, investing in many non-US based investments can be highly tax inefficient from a US perspective. Any non-US regulated collective investments are considered to be something called a Passive Foreign Investment Company, or PFIC. Unless a special election is made in the first year of ownership, PFIC gains can often attract tax at the highest marginal income tax rates in the US (regardless of the level of your other income) as well as an interest charge. Up to 100% of the gain can be paid in tax. PFICs do not receive the benefit of capital gains tax rates in the US and PFIC gains cannot be offset against another PFIC loss. Common UK products, unless recognised under the US-UK income tax treaty, will often attract PFIC treatment. As ISAs are viewed as taxable accounts from a US tax perspective, the US tax authorities will look through the ISA wrapper to the underlying holdings and tax them based on the character of the investments. If you have ISAs it is important to invest in individual securities to then avoid PFIC treatment. If you hold any non-US regulated collective investments you should seek advice from a US-UK tax adviser to determine the tax consequences of selling and you should consider restructuring your finances to hold more tax-efficient investments.

Q4. What are your plans for the future? Are you intending to stay in the UK or return to the US?

Many Americans believe they will return to the US but don’t know when. Others are equally unsure whether they will remain in the UK, go elsewhere or return eventually to the US. Your long-term residency intentions in retirement and an understanding of where your long-term liabilities are will have important implications on how your investment assets are best structured. Foreign exchange risk can creep into portfolios if they are not structured properly, and having an understanding of where this lies is crucial when designing an investment portfolio. For example, the reference currency of your growth assets matters less when you have an unhedged globally diversified portfolio versus the denomination of your fixed income investment assets.

Q5. Do you have Pensions in the UK, US or elsewhere?

Holding a recognised pension asset under the US-UK income tax treaty can offer real benefits to appropriately managing the overall structure of your investment base. For example, if your long-term intentions are to remain in the UK and you hold recognised tax deferred pension assets in either the US or the UK, this can be a good place to shelter pure Sterling investment exposure within your portfolio without attracting negative tax consequences that can result from PFICs. Alternatively, if your intention is to return to the US, there may be opportunities to custody your UK pension on a US platform allowing US based investments to be held within the pension.

Q6. Do you know whether you have any Excess Foreign Tax Credits and do you know how you can utilise them?

Since UK tax rates are generally higher than US tax rates, many people generate excess FTCs on their US tax return that build up over time. These excess credits can be carried forward and utilised for up to ten years on foreign income that does not attract extra tax in the UK but attracts tax in the US. There are limited scenarios that these can be used, but this can be a valuable planning tool if the opportunity arises. Some common uses of excess FTCs can be towards UK pension contributions, contributions to an individually owned Enterprise Investment Scheme (EIS), or a Roth IRA conversion of deemed foreign source contributions made to an employer 401k plan. It can be beneficial to review opportunities to utilise excess FTCs with a US-UK tax adviser.

Q7. Are you Married? If so, what is the nationality of your spouse?

Two US citizen spouses generally have less complications and complexities to consider with respect to the structure of their financial assets. However, when one spouse is a US person and the other is not, more consideration is often needed to determine the optimal structure of any investment assets. For instance, the non-US spouse will usually be able to take advantage of all of the tax favourable UK products without exposing themselves to negative US tax consequences whilst the US spouse cannot. Additionally, it can often be beneficial to review the ownership structure of real property when both spouses are not US persons.

Q8. Are you aware of the difference between the UK and US Estate/ Inheritance Tax Limits and the different Gifting Rules in the UK and US?

This is an area of potential change under Trump’s tax proposals but, in general, the US is very generous with its estate tax allowances, currently $5.6 million (2018 thresholds), for US citizens and those considered domiciliary residents for US gift and estate tax purposes. Lifetime gifting is tied to the US estate tax allowances, with any gifts in excess of $15,000 (to non-spouse individuals) or $152,000 (to non-US spouses) per year going towards the individual’s estate tax lifetime allowance. The UK on the other hand currently allows for generous lifetime gifting in the form of Potentially Exempt Transfers (PETs) and for a £325,000 nil rate band per individual for inheritance tax. Whether an individual is considered deemed domicile or not will impact appropriate strategies for managing exposures in both jurisdictions.

Managing optimal strategies for one jurisdiction is not easy, but having to understand and consider the interaction between two can make things even more complex. Taking the time to understand where those complexities in your financial lives lie, and seeking advice from a professional who understands how the US and UK rules interplay, can be incredibly valuable to keeping things simple, flexible and optimal as your plans inevitably evolve.

Risk Warnings and Important Information The value of investments can fall as well as rise. You may not get back what you invest.

The above article does not take into account the specific goals or requirements of individuals and is not to be construed as advice. You should carefully consider the suitability of any strategies along with your financial situation prior to making any decisions on an appropriate strategy.

MASECO LLP trading as MASECO Private Wealth is authorised and regulated by the Financial Conduct Authority, the Financial Conduct Authority does not regulate tax advice. MASECO Private Wealth is not a tax specialist. We strongly recommend that every client seeks their own tax advice prior to acting on any of the strategies described in this document.

Andrea Solana is Head of Advanced Planning at MASECO Private Wealth where she helps to provide financial planning and wealth structuring advisory services to US expatriates in the UK and British nationals in the US. Andrea spent the first 9 years of her career with a well-known Washington DC based international tax and global wealth management firm where she gained considerable experience advising high net worth individuals with multi-jurisdictional financial interests to design and implement strategies for tax-efficient and risk-managed asset growth. She has written numerous white papers regarding fundamental financial planning and investment strategies for US connected individuals and has previously been a speaker on financial planning topics at numerous places including both The World Bank and International Monetary Fund (IMF).

Andrea graduated from University of Virginia’s McIntire School of Commerce with a degree in Finance and Management and completed her MBA at Imperial College London. Andrea holds her UK Investment Advice Diploma and US Series 65 license.

Visit www.masecoprivatewealth.com

Article by Heidi Porter, Happy Soles Reflexology

In this age of extended working hours, 24/7 availability through email and digital media, and the feeling of a narrowing, pressurised job market, it is no surprise that the word ‘stress’ has become part of our everyday vocabulary. Try counting how many times you hear it used during the course of a day. It seems that just about everyone is juggling too many balls and inevitably one or more of these ‘balls’ gets dropped from time to time.

Of course, we are quick to associate ‘stress’ with negativity, but it is a necessary human response and one that actually does us good in small short-lived doses. For example, that ‘buzz’ you get when your back is up against the wall to meet a deadline and suddenly your productivity and energy goes into overdrive with the result that you manage to smash the task. Adrenaline flows and stress helps get the job done. Or being thrust into an emergency situation when something inside you that seems to be out of your own conscious control takes over and just reacts. Stress saves lives and makes heroes of ordinary people.

But as with most things, whilst a little may do you good, too much has the reverse effect. When the ‘stress’ is ongoing and long-term there are physiological effects on the body. Stress hormones, known as cortisol, are released to help the body maintain supplies of blood, and in doing so, the immune system is suppressed. A suppressed immune system can then lead to all sorts of health issues, as the body deals with the nitty gritty of survival, rather than maintaining balance, known as ‘homeostasis’ in the body. The longer the stress continues, the greater the health consequences become.

To put some positivity back into this article we have more options available to us than ever before if we decide to be proactive in breaking this cycle, or in addressing health issues that crop up. Alongside the medical route of seeing a pharmacist, GP or specialist, there is a growing market in alternative and complementary therapies. There is an important difference between these two which is often misunderstood. An alternative therapy is generally used instead of conventional medical treatment whilst a complementary therapy is used alongside medical treatment. Within this latter category, you will find therapies such as acupuncture, massage and reflexology. All of these treatments harness the therapeutic power of touch, but reflexology is sometimes seen as the latecomer to the party and viewed by some with indifference or suspicion.

Actually, being a ‘latecomer ’ couldn’t be further from the truth as reflexology has been practiced for over 5000 years. Unlike acupuncture it is a non-intrusive therapy. It works through the theory that different points on the feet, lower leg and hands correspond with different areas of the body; for example, the big toe relates to the head and neck. Reflexologists believe that working these ‘reflex points’ aids relaxation, improves circulation, and helps the body get back into balance- aiming to achieve ‘homeostasis’. Alongside these benefits, reflexology works to help eliminate toxins from the body, that are built up in all of us through day to day life. For this reason, you will be encouraged to drink plenty of water after a treatment to help your body flush out any such chemicals.

Many people use reflexology as a means of alleviating the symptoms of a wide range of health conditions, and whilst there are many studies seeking to ‘measure’ the impact of reflexology scientifically, it is the vast weight of anecdotal evidence that seems to have pushed this previously little known therapy into the mainstream. I first experienced it in a hospital whilst receiving treatment for breast cancer, and I became more and more interested as I recognised the beneficial effect it was having on me - it enabled me to relax, and switch off my mind, something I could not manage to achieve myself at that time. I went on to have treatments regularly throughout my recovery at a local Cancer Centre, and now two years on, I have trained as a reflexologist myself.

I continue to be fascinated by the power of this therapy, and especially with regard to tackling stress. The combination of pressure and therapeutic touch activates the part of our nervous system that moderates, calms and relaxes, enabling it to reduce our body’s stress response. This often continues well after the treatment has finished, resulting in an improved sense of wellbeing. It is no surprise then, that more and more people are seeking reflexology, and with some hospitals and clinics beginning to offer it to their patients, it is more widely available than ever before. If you are looking to improve your sense of wellbeing in 2018, then perhaps reflexology is a good place to start?

Heidi Porter is a Practitioner at Happy Soles Reflexology (find us on Facebook). Heidi undertakes home and corporate visits in South London. For further information please contact Heidi on Heidi-porter@sky.com or visit Happy Soles Reflexology.

67 Venn St, Clapham, SW4 0BD

Telephone: 0207 627 3881

It’s not often that the two people who publish American in Britain magazine get the chance to actually sit down together for dinner, but I am delighted to say a couple of weeks before this issue went to print, Damian and I laid aside our proof reading (although we both took it on the train with us as we didn’t really have a minute to spare), and made our separate ways to Clapham Common to enjoy an evening of delicious Italian starters and pizzas, and what delighted me the most when I woke up the next morning, was that I hadn’t gained any weight, which I usually do having tucked into garlic bread, cold meats and pizza, so I honestly believe that the way the dough is specially made at Radio Alice, really is a much healthy option, and as much as I like Pizza Express, I think that I will be hopping back on the train for the pizza that is equally, if not more delicious, but that will also keep the weight off!

Hailing from Bologna, brothers Matteo and Salvatore Aloe have brought their sourdough pizzas to London initially with Radio Alice on Hoxton Square, but Damian and I visited their newest opening on Clapham’s Venn Street that opened last June, and is situated just by Clapham Common station, in a pedestrianised road, with several restaurants and bars, and lovely outdoor lighting. The restaurant also has large tables outside, so I am already visualising my outdoor pizza experience once spring/summer arrives.

Championing the belief that delicious pizza starts with a light and digestible sourdough base, (which I can now champion with them!), the brothers’ integrity in ingredients extends from the dough through to carefully sourced toppings. Allowing the dough to ferment for 24 hours, Radio Alice’s pizzaiolos use type 1 organic flour, with more nutrients than standard, refined flour and seasonal, organic toppings from Prosciutto di Parma with organic burrata and orange infused oil, to Amalfi coast Anchovies, tomato, red onion and lemon zest.

The recipe was born in Bologna, and uses ancient baking techniques to help make the pizzas crisp on the outside and soft in the inside. By blending organic, stoneground flour with a mother yeast sourdough, they’ve created a base that’s light and nutritious. Using ingredients sourced from small-scale Italian suppliers, the toppings are portioned perfectly onto each slice and added at just the right moment, so you’ll enjoy them when they’re at their best.

The atmosphere in the restaurant was relaxed, informal and buzzy, and we sat in one of the booths, alongside a party of 16 who thoroughly enjoyed their evening at Radio Alice! Our waitresses were lovely helpful and welcoming, and gave us the feeling that we really were in a family run restaurant somewhere in beautiful Italy!

We started our dining experience with Garlic Bread (£2.50) and a Salumi Share Platter (£8), and enjoyed the sour dough garlic bread so much that we devoured a second portion! The menu at Radio Alice isn’t extensive and there is a choice of eleven pizzas, ranging in price from £5 for Tomato – garlic, parsley, to £12 for Proscuitto di Parma – burrata, fiordilatte mozzarella, orange oil, but we chose the Butternut Squash – porcini mushrooms, Parmigiano Reggiano, black garlic, fiodilatte mozzarella (£10) and Speck – gorgonzola, fiodilatte mozzarella, honey, walnuts (£11). Both arrived pre-cut which was great as it made sharing very easy, and I did remark to our lovely waitress that they looked exactly the same as the photos they had on the internet (which was a good thing!). They were light, fluffy and crispy, and the toppings were original and delicious. You can order extras such as Chilli oil, garlic butter, olives, capers and anchovies, but in my opinion they don’t need any extras. There are also a selection of salads to choose from, but we weren’t feeling that health conscious that night!

Following our pizzas, and having had a short rest to enjoy the last of our wine (the house wine is very good and priced at (£18.25), we chose a dessert each. Damian chose the Warm Flourless Chocolate Cake, which I didn’t really see as he devoured it so quickly (!) and I had a scoop of really chocolatey chocolate ice cream.

Radio Alice is a great venue for friends and families, and we hope you enjoy your visit there as much as we did, although we both had to get straight back to work once we left to finalise our proof reading!

Visit www.radioalicepizzeria.co.uk/clapham