A record number of Americans seeking a more predictable political climate in the wake of Donald Trump‘s presidency are choosing to relocate to the UK, according to Spear’s immigration, property and legal experts.
The cultural ties, common language and political stability make the UK an appealing option for Americans and returning British expats driven to seek a new life overseas by political shifts, economic strategy or lifestyle preferences.
The UK’s prestigious international schools, stable political environment and its status as a leading global financial hub further cement its appeal.
[See also: The ‘cultural vibe’ to expect from the Trump/Musk administration]
Nick Rollason at Kingsley Napley, told Spear’s there had been a significant uptick in immigration inquiries from US/UK couples who have decided to settle in Britain after years of living in the States, often applying for spouse or partner visas.
Additionally, American families, particularly LGBTQ+ individuals and those with young or neurodiverse children, are seeking UK residency through sponsorship by UK-based businesses or the expansion of their US enterprises into the British market, he said.
Recent statistics from the UK Home Office underscore this trend. In Q4 2024, applications for British citizenship by US citizens increased by nearly 40 per cent compared to the same period in 2023. Many applicants have lived in the UK for years and are opting to secure citizenship rather than return to the US.
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And the prime property sector has also observed more Americans house hunting on this side of the pond. Data from DDRE Global, via its ADVSR platform, found a dramatic 71 per cent increase in US interest in UK properties in Q4 2024 compared to Q3. Mayfair remains the most sought-after area for US ex-pats, followed by St. John’s Wood, Knightsbridge and Belgravia.
Why now?
While motivations vary, the timing of this increase coincides with the results of the November 2024 US election, when Trump was given the keys to the White House for a second term after beating Democrat candidate Kamala Harris. According to Rollason, many applicants cite political instability, concerns over civil rights and potential economic downturns, including the risk of a trade war, as factors influencing their decision to relocate.
Rollason says: ‘The timing of the uptick in citizenship applications does tally with the early November 2024 election result. The Home Office British citizenship statistics for Q4 2024 potentially only show the very early curve in any surge between early November and the end of the year. The next quarterly statistics to March 2025 will provide more concrete evidence of any direct change since the election.’
Changes to British nationality laws in 2022 have allowed US citizens with British ancestry to apply for citizenship under ‘special circumstances’.
‘We are also seeing many US citizens with UK ancestry or parentage looking to for advice on their eligibility for British citizenship or British passports. Due to various changes in UK nationality law, some US citizens who were previously unable to register as British (for example because British mothers could not historically pass on their citizenship) can now do so,’ Rollason says.
While high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals form a significant segment, professionals in finance, technology, entertainment and professional services are also making the move. Many business owners and entrepreneurs are leveraging the UK Expansion visa or Skilled Worker visa to establish themselves in Britain.
[See also: How citizenship is becoming a luxury asset]
Tax pitfalls
In a further twist, tax changes announced by Rachel Reeves in her Autumn Budget last October gave a four-year exemption to the international community from taxes on foreign income and gains.
The UK’s Foreign Income and Gains (FIG) tax regime allows new residents to bring in foreign income tax-free for the first four years. After that period, worldwide income becomes subject to UK taxation, and after ten years, worldwide assets fall under UK inheritance tax laws. These four years – coincidentally the period of a US president’s term in office – creates a window for individuals who, for personal or political reasons, may wish to leave their home countries temporarily.
The policy is only applicable to those who have not been UK residents in the past decade, which could include many HNWs globally.
But there are still plenty of tax pitfalls for wealthy Americans to fall into. Aidan Grant, partner at Collyer Bristow, warns those seeking to relocate that dual exposure to US and UK taxation necessitates careful planning to maximise available tax relief through the US- UK tax treaty.
‘There are significant consequences to the termination of the non-dom regime, particularly for UK resident Americans. Not only will they find that their non-UK wealth falling within the scope of UK inheritance tax faster than under the non-dom regime, any trusts created in reliance on the non-dom rules may, from 6 April, become exposed to UK tax to varying degrees.’
He adds: ‘Obtaining UK citizenship can be a valuable tool providing flexibility for a family looking to relocate to the UK. However, there are some US/UK tax efficiency plans that are disapplied under the treaties if the individual is a UK citizen. Americans should therefore take advice on the potential consequences arising from the loss of those planning opportunities before pressing ahead with UK citizenship applications.’
