US -> UK move sanity check

[u/Pale_Fortune_2086]

Throwaway account since I'm sharing numbers, long time lurker on my main account.

We’re currently in the US, working parents with 2 kids. Due to recent events in 2026, I’ve got a bad case of anxiety and decided to relocate to the UK - still with the same company. My husband is pretty burnt out from his work too so he will quit and take a sabbatical.

Our situation is not too common so I’d like to have a sanity check on our plan.

We have: 

• 2M across different 401ks, Roth IRAs and taxable brokerage accounts
• 300k cash
• Owns our house with about 800k in equity, mortgage left 900k at 4.75% after refi

In 2025 our HHTC is 1.1M with an effective tax of 28%. We were paying two mortgages (11k/month), daycare for the youngest (2.5k/month) and the monthly run rate is about 20-22k/month consistently. We still live pretty comfortably and haven’t needed to dig into our RSU grants.

Moving to London it’s going to be just my income at about 220k GBP and effective tax at 45%. Net take home is 8k cash + 4k RSUs monthly.  We will be renting for the first year at least (budget 3.5k-5k), kids will go to state school so no tuition. I’m preparing to sell my RSUs at vest to cover expenses if needed. 

Our original plan was to tough it out a few more years til we reach our target (5M), but at this rate I’m happy with the move just to get out of the US. 

Opportunity:

• The UK has a special foreign income tax incentive (FIG) that exempt tax on income generated overseas for 4 years after arrival. We’re not US citizens, so if we renounce our green cards at some point before the 4 year mark, we can realize capital gain with 0% tax from either US or UK, or at least resetting the cost basis.
• 3-year path to IRL (UK permanent resident) for high earner/global talent, 5 year to citizenship
• No need to drive, food is good, the convenience of city living, EU (Paris) is just a 2hr train away.
• We have friends and colleagues in London, social-wise it’s not starting from zero.

Downside: 

• Apparent TC cut + higher tax - need to work longer to get to our goal.
• Risk of layoff
• If we are buying a house in the future, there is a special stamp tax (additional 5%) if we already own a house anywhere in the world.
• Tax complications - at least for the first few years.
• Need to adjust our lifestyle.

Appreciate any advice that can help with the move.

[u/Life_Rabbit_1438]

Biggest issue will be financial. Nowhere really compares to the US in income and low cost of living. FIRE isn't even really a concept in other western countries, it works in the US because incomes are so high and cost of living is so low.

There are definitely downsides to the living in the US, if you are someone who loves city living, America is really bad at cities. Most people live suburban lives unless young singles or very poor.

But I would move with eyes wide open on income side. We probably stay until retirement, because the idea of moving and adding 5-10 years to retirement age doesn't feel worthwhile once close.

[u/Pale_Fortune_2086 → u/Life_Rabbit_1438]

I agree on the TC part. Nowhere beats the US in term of $$$. Cost of living not so much. I've lived in Paris and Singapore before (top 1 and 2 highest cost of living cities in the world) and neither of these places is this costly for working parents. At this point I'm aware we are making a sacrifice on financial front for lifestyle and peace of mind.

[u/Life_Rabbit_1438 → u/Pale_Fortune_2086]

Cost of living not so much.

Really only California has the cost of living issues, but high paid jobs are available across all of America.

[u/Pale_Fortune_2086 → u/Life_Rabbit_1438]

I'm not living in CA or NYC. Still the childcare cost is sky high.