Stage 7: Before You Leave the UK
Stage 7: Before you leave the UK. Your visa is in hand and your flight is booked. There are UK-side obligations to address before departure, and some have time-sensitive deadlines that can affect your finances or rights after you leave. The most commonly missed and costly issue is ISAs, which need action before you become a US person. Do this first: speak to a UK/US cross-border tax professional about any ISAs.
Action list
- Beneficiary: Before you become a US person, get UK/US cross-border tax advice on any ISAs: liquidate, restructure into US-compliant investments, or accept ongoing reporting complexity.
- Either: File a P85 with HMRC to establish non-UK residency and your departure date for UK tax purposes.
- Either: If you have outstanding student loans, update your details with the Student Loans Company.
- Either: Register as an overseas voter before you leave if you want to retain UK voting rights.
- Either: Decide whether to continue voluntary National Insurance contributions: 10 years for minimum UK State Pension eligibility, 35 years for the full pension.
Once your visa is in hand and your flight is booked, there are UK-side obligations to address before departure. Some have time-sensitive deadlines that can affect your finances or rights after you leave.
UK obligations: before you leave
If you want to retain UK voting rights, register before you leave: gov.uk/voting-when-living-abroad
When leaving the UK, file a P85 form to establish non-UK residency. This prevents incorrect taxation, may trigger tax refunds (note: HMRC typically mails a paper check to your US address, so make sure you have a way to deposit it), and establishes your departure date for UK tax purposes.
If you still have outstanding student loans, you must log in to your student loan account and update your details to inform the Student Loans Company (SLC) that you are moving to a different country. This is essential for your loan repayment obligations and ensuring you don't miss communications about your account.
You can continue making voluntary NI contributions while living in the US. This is worth considering carefully:
- 10 years of contributions = minimum eligibility for UK State Pension
- 35 years of contributions = full UK State Pension
- Voluntary contributions are relatively inexpensive and the UK State Pension is index-linked: many UK emigrants consider continuing them good value
The NHS is residence-based, not citizenship-based. Once you permanently move to the US, you will lose free access to most NHS services. However, there are important exceptions:
- Accident & Emergency (A&E): always free, and anyone can access A&E in the UK regardless of residence status
- Other services: GP visits, prescriptions, hospital treatment, and ongoing care are charged to overseas visitors. You may be charged hundreds of pounds for consultations and treatment
- If you return to live in the UK: You regain free access immediately upon re-establishing UK residence
Plan ahead: Consider private health insurance for the US, and be aware that NHS charges apply if you visit the UK for medical treatment while living abroad. See: NHS: Planning your healthcare abroad
This is one of the most commonly missed and costly issues for UK → US movers. Once you become a US person (green card holder), ISAs lose their tax-advantaged status in the US. Worse, Stocks & Shares ISAs typically hold non-US funds classified as PFICs (Passive Foreign Investment Companies) under US tax rules.
PFICs are heavily penalized in the US: complex annual reporting (Form 8621 per fund), punitive tax treatment on gains, loss of favorable capital gains rates, and significant compliance costs.
Cashing out ISAs after becoming a US person triggers PFIC taxation. The options before becoming a US person are: liquidate ISA holdings, restructure into US-compliant investments, or accept ongoing reporting complexity.
Speak to a UK/US cross-border tax professional before making any decisions. Do not assume your UK accountant or a standard US tax preparer will handle this correctly.
Before you move on
- Beneficiary: I have had cross-border tax advice on any ISAs, before becoming a US person.
- Either: My P85 is filed, and I have a way to deposit an HMRC paper check at my US address.
- Either: The Student Loans Company knows I am moving to a different country, if I have a loan.
- Either: I have registered as an overseas voter, if I want to keep UK voting rights.
- Either: I know that once I move, the NHS charges for most care, and only A&E stays free.