US Tax Guide for Virginia Residents Living in the UK
Virginia is known for aggressively pursuing former residents for state tax purposes. If you moved from Virginia to the UK, Virginia may still consider you a tax resident if you maintain significant ties. Virginia conforms to the federal FEIE, which is an advantage over non-conforming states.
Virginia Residency Rules
Virginia determines residency based on domicile. If you maintain a Virginia domicile (home, family, voter registration, driver's license), Virginia may still consider you a resident even if you live abroad. Virginia conforms to the federal FEIE, meaning if you claim FEIE on your federal return, Virginia will also allow it.
UK Tax Implications
The UK taxes worldwide income for tax residents. UK tax rates reach up to 45% plus National Insurance. The US-UK tax treaty applies. The remittance basis may apply for non-domiciled residents.
FEIE vs FTC for Virginia Residents in the UK
Virginia conforms to the federal FEIE, so claiming FEIE on your federal return also reduces your Virginia tax. However, FTC is usually more valuable in the UK due to high UK rates.
Common Mistakes Virginia Residents Make in the UK
- Assuming leaving Virginia ends state tax residency — Virginia aggressively pursues former residents.
- Not updating driver's license and voter registration — Evidence of Virginia residency.
- Not understanding Virginia FEIE conformity — Virginia allows FEIE, which is an advantage.
- Not planning state tax exit before moving — State tax planning should happen before you leave.
State Tax Exit Strategy
To properly exit Virginia tax residency:
- Surrender Virginia driver's license
- Cancel Virginia voter registration
- Sell or rent out Virginia property
- Close Virginia bank accounts
- Document your move with a clear paper trail
When to Get Professional Help
You should consider professional help if you have Virginia tax residency questions, foreign accounts exceeding $10,000, or complex income situations.
FileAbroad reviews each engagement personally.
Tell me about your situation → /intake
FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.
Scope statement reviewed 2026-08-30 · FileAbroad product/content owner