The return of Prince Harry and Meghan Markle to the UK has once again put the spotlight on living life between Britain and America. Whilst most headlines focus on the personal aspects of relocation, for many internationally mobile families there is another important consideration: tax.

Since April 2025, the UK has fundamentally changed how internationally wealthy individuals are taxed. The old non-dom regime has gone, replaced by a new residence-based system which can have significant implications for anyone moving back to the UK. However, we are seeing increasing interest and enquiries from US tax payers who are interested in relocating to the UK. 

If you are a UK expat, a UK/US dual national, or have spent several years living in the US, here are some key points to consider before making the move.

1. Could you benefit from the new FIG regime?

Individuals returning to the UK after at least ten years of non-UK residence may qualify for a four-year exemption on foreign income and gains under the new Foreign Income and Gains (FIG) regime. 

Takeaway: Check your UK residence history early. The relief can be valuable, but qualification is not automatic.

2. Review your assets before you return

The timing of asset sales, trust distributions, dividends and business exits can make a significant difference once UK residence resumes.

Takeaway: Consider whether any restructuring or disposals should occur before becoming UK resident.

3. Don't forget inheritance tax

The UK's new Long-Term Residence regime means inheritance tax is increasingly linked to residence rather than domicile. Overseas assets that were previously outside the UK tax net may now require review.

Takeaway: Understand how your residence history could affect your future inheritance tax exposure.

4. Review trusts and offshore structures

Many offshore trust and company structures were created under the old rules and may need revisiting under the new regime. 

Takeaway: Don't assume existing planning remains fit for purpose.

5. UK/US families need joined-up advice

US citizens remain subject to US tax regardless of where they live. A move to London often creates complex UK and US tax interactions.

Takeaway: Ensure your UK and US advisers are working together.

6. Update your wills and succession planning

A move back to the UK is a good opportunity to review wills, powers of attorney and wider succession arrangements.

Takeaway: Estate planning should be reviewed whenever residence changes.

Final Thoughts

Harry and Meghan's return is a reminder that moving home is about far more than geography. The UK's new tax regime means that residence history, worldwide assets and cross-border planning are now more important than ever.

For many families, the best planning opportunities arise before they become UK resident again. A review before the move can help avoid costly surprises later.

Sometimes the most valuable advice is obtained before the flight home is booked. If you are If you are a UK expat, a UK/US dual national, or have spent several years living in the US, Edwin Coe's International Private Client team can help you understand the implications and assist in forming a plan that reflects your long-term objectives.