UK spouse visa financial requirement 2026: what a British spouse and an American partner must show, and where a lifetime annuity fits
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: In 2026 the UK spouse visa financial requirement is £29,000 a year gross (about $3,190 a month at $1.32 per pound) for a British sponsor and an American partner, with no extra amount for children on applications made under the rules in force since 11 April 2024. Unlike most countries, the UK counts pension income and savings of both spouses, so the American partner’s Social Security and annuity count; only job income must be the British partner’s. With no income at all, £88,500 in cash held for 6 months meets the test, which is usually cheaper than buying income. A lifetime annuity helps when your money sits in IRAs or 401(k)s, or when you want to spend your savings rather than park them.
Free guide: Moving abroad on a fixed income
Income rules and taxes by country: Norway, Switzerland, Sweden, Italy, Spain, Malta and more, plus how a lifetime annuity fits.
When a British spouse brings an American husband or wife home, the UK spouse visa (officially the family visa as a partner) has a financial requirement that drives many refusals. After decades in the US, the savings and Social Security usually sit in the American’s name. Here is what the Immigration Rules say in 2026, which money counts, and when a lifetime annuity is worth it.
The 2026 UK spouse visa financial requirement
The rule is paragraph E-ECP.3.1 of Appendix FM. The applicant must show, with the documents listed in Appendix FM-SE, one of three things:
- Gross annual income of at least £29,000 from the permitted sources; or
- Cash savings of £16,000 plus 2.5 times any shortfall between that income and £29,000, held for 6 months; or
- The adequate maintenance route, if the British partner receives one of the listed disability or carer benefits.
Children: since 11 April 2024 the £29,000 figure is flat, so children do not raise it. Only people extending permission they first got under the old rules still use £18,600 plus £3,800 for the first child and £2,400 for each additional child, capped at £29,000. The first visa runs up to 33 months, an extension adds 30 months, and settlement (indefinite leave to remain) is possible after 5 years, so you show the money three times. Americans meet the English language requirement by nationality. The threshold has been under review since 2024, so check the rules on the day you apply.
Whose income counts: the five categories
The Home Office guidance groups the sources into categories. The sources listed in E-ECP.3.2 are the key to the whole page:
| Category | What it is | Whose counts at the first (entry clearance) application |
|---|---|---|
| A and B | Salaried or non-salaried employment | The British partner only. A partner returning from abroad can use an overseas job plus a UK job offer (see below) |
| C | Non-employment income: rent, dividends, interest, other investment income | Both: “other specified income of the applicant and partner”. Counts what was actually received in the 12 months before applying |
| D | Cash savings above £16,000, held 6 months | Both, in either name or jointly |
| E | State (UK or foreign), occupational or private pension | Both: “specified pension income of the applicant and partner”. The annual amount counts once it has been paid for at least 28 days |
| F and G | Self-employment or a director’s income from a UK limited company | The British partner; cannot be combined with savings |
That is the good news for American couples: the American applicant’s US Social Security is a foreign state pension, and a 401(k) or IRA payout or a private pension counts too, in the applicant’s own name. You do not have to move assets into the British spouse’s name. Pension, non-employment income and savings can be combined; job income and savings can be combined; self-employment cannot be combined with savings.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in the UK are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
Single or married: how much income you need
| Household | 2026 requirement | Who must show it |
|---|---|---|
| Single American, no British partner | No spouse route; the UK has no general retirement visa | Not applicable |
| Couple: British sponsor plus American partner | £29,000 a year, about $38,280 a year or $3,190 a month | Combined: pensions, other income and savings of both; job income of the British partner only |
| Each dependent child (new applications since 11 April 2024) | No increase | Not applicable |
| All savings, no income | £88,500 (£16,000 plus 2.5 times £29,000), about $116,800 | Applicant, sponsor or joint, held 6 months |
| British partner on a listed disability or carer benefit | No fixed figure: show adequate maintenance and accommodation | The household |
FX: $1.32 per pound, from the ECB reference rates of 2 October 2026. The Home Office converts dollar income and savings at the OANDA closing rate on the date you apply, so if the pound strengthens your dollar income buys less of the threshold. Build in headroom.
The savings route is often the cheaper answer
I sell annuities, and I will still say it plainly: for many couples the cash savings route is the easier way through the UK test. The formula is £16,000 plus 2.5 times the shortfall, and the savings are not spent, they just sit in an account you can access immediately for 6 months before each application.
- No income at all: £88,500.
- American partner draws $2,000 a month of Social Security ($24,000 a year, about £18,180): shortfall about £10,820, times 2.5 is £27,050, plus £16,000 = about £43,050 of savings.
- At settlement (5 years) the multiplier drops to 1 times the shortfall, so the savings needed fall.
Savings can come from investments sold in the 6 months before applying, as long as you owned them for the whole 6 months and have the portfolio statements (FM-SE paragraph 11A). Retirement accounts are a grey area: the rules accept a pension savings account that “can be immediately withdrawn”, which a 401(k) at a former employer may or may not be.
Where a lifetime annuity fits
An annuity is the right tool in three situations:
- Your money is in IRAs and 401(k)s. Turning part of an IRA into a life annuity creates private pension income, which Category E counts at its full annual amount once it has been paid for 28 days.
- You want to live on your savings, not park them. The savings route needs the balance in place again at the extension and at settlement. Annuity income keeps arriving without that.
- You want income that cannot run out during the 5 years to settlement and after.
One caution I would not skip: Appendix FM-SE does not mention purchased annuities by name. The evidence it asks for is a letter from “a pension company” confirming entitlement and amount, plus a bank statement showing a payment. If a caseworker treats a SPIA bought with after-tax money as non-employment income (Category C) rather than a private pension (Category E), only the payments actually received in the last 12 months count. So start payments about 12 months before applying, or combine the annuity with savings to cover the gap. Either way, the annuity can be in the American partner’s name or the British partner’s.
US gift note (general information, confirm with a tax adviser): the UK counts either spouse’s pension, so you usually do not need to move money. If you choose to buy in the British spouse’s name and that spouse is not a US citizen, there is no unlimited marital deduction; for 2026 the annual exclusion for gifts to a non-citizen spouse is $194,000, and above that you file Form 709 and use lifetime exemption, generally with no tax due. If the British spouse holds a US green card, leaving has its own US tax rules, so get advice before surrendering it.
Example: a 62-year-old couple moving to the UK
Target: £29,000, about $3,190 a month, plus 15% headroom for the exchange rate, so about $3,669 a month. The annuitant below is the British sponsor, aged 62. Payout at 62: ImmediateAnnuities.com survey of September 9, 2026, life-only, per $100,000 a month: man $603 average ($660 best), woman $582 ($637 best). Illustrative, not a quote.
| Household, sponsor 62 | Monthly gap | Premium at average rate | Premium at best rate |
|---|---|---|---|
| British husband as sponsor, no other income | $3,669 | about $608,000 | about $556,000 |
| British wife as sponsor, no other income | $3,669 | about $630,000 | about $576,000 |
| British wife sponsor, American husband draws $2,000 a month Social Security | $1,669 | about $287,000 | about $262,000 |
| Same couple using the savings route instead | None | About £43,050 (about $56,800) held in cash for 6 months, not spent | |
Premium equals the monthly gap divided by the payout per $100,000, times $100,000. The last two rows are the honest comparison: to pass the test alone, savings win by a wide margin. The annuity earns its place when the money is in retirement accounts or when you would otherwise be drawing down the same savings the Home Office wants to see. A joint and survivor annuity covering both of you pays less per dollar than single life, so get a quote.
Which annuity counts
The UK does not demand lifelong income, only ongoing, evidenced income. A life-only or joint and survivor SPIA, or a deferred annuity or MYGA converted to lifetime payments, gives a clean letter and a regular deposit. A period-certain annuity counts while it pays, so check it runs past settlement. An annuity still accumulating is not income, and its value is not cash savings unless it can be withdrawn immediately.
A British partner returning to the UK with a job
If the British sponsor is still working in the US, FM-SE paragraph 13(c) and (d) let a returning partner rely on employment: the partner must have worked abroad for the current employer for at least 6 months (or within the last 12 months) and have a UK job starting within 3 months of returning. Both the overseas pay and the UK salary are tested against £29,000. The American applicant’s own job, abroad or planned in the UK, does not count at the first application.
Refused spouse visa UK: the financial reasons I see most
- Wrong or missing documents. Appendix FM-SE is strict about the exact evidence: letters, bank statements, the 6 and 12 month windows.
- Savings not held for 6 months, or not in the name of the applicant, the sponsor or both jointly.
- Help from family. Promises of third-party support are not accepted (FM-SE paragraph 1(b)), and loans and home equity never count.
- A pension started too late. It must have been paid for at least 28 days; a new annuity read as Category C counts only what was received in the past 12 months.
- Exchange rate. Dollar income converted on the application date can fall just short.
- The applicant’s own job relied on at entry clearance, or a returning sponsor without a UK job starting within 3 months.
The refusal letter states the grounds and how to challenge them; fixing the evidence and reapplying is often faster than an appeal. Meeting the numbers is not approval: accommodation, relationship and suitability rules apply too.
How the annuity is taxed: the UK and the US
US side. As a US citizen you stay taxable on worldwide income wherever you live. A US single premium immediate annuity bought with after-tax savings is taxed under IRC 72: an exclusion ratio makes part of each payment a non-taxable return of your premium until the premium is recovered. If you bought it with IRA money, every payment is taxable. The foreign earned income exclusion does not cover annuities (IRC 911(b)(1)(B)(i)). Foreign tax on the payments can be credited on Form 1116, through the treaty’s relief article. Since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding, even if payments go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment, not extra tax. An annuity from a US insurer is not reported on FBAR or Form 8938, and it is not a PFIC.
Treaty. Under Article 17(4) of the US-UK treaty, an annuity beneficially owned by a UK resident is taxable only in the UK. The saving clause (Article 1(4)) lets the US keep taxing its citizens anyway. Article 24(6) then sorts out the overlap for a US citizen living in the UK: the UK credits only the US tax a non-citizen would owe (none on an annuity), and the US credits the UK tax, re-sourcing the income to the UK so the credit works. US Social Security paid to a UK resident is taxable only in the UK under Article 17(3), and Article 1(5) carves that rule out of the saving clause, so it holds for US citizens too. If the annuitant is a British spouse who is not a US citizen or green card holder, Article 17(4) gives the UK the sole right to tax, and the insurer will ask for Form W-8BEN.
UK side: the 4-year FIG regime. On 6 April 2025 the 4-year foreign income and gains regime replaced the remittance basis. Someone who becomes UK resident after at least 10 tax years of non-residence can claim relief from UK tax on qualifying foreign income for their first 4 tax years. HMRC’s list of qualifying income includes purchased life annuity payments, foreign pension income and foreign social security benefits. The cost: in any year you claim, you lose the personal allowance (£12,570) and the capital gains annual exempt amount, so a modest income may be better off not claiming. Most American partners, and British partners back after 10 years or more in the US, qualify.
UK side after year 4. A life annuity bought from an insurer with after-tax money is a “purchased life annuity” (ITTOIA 2005 s.423). Only the income element is taxed, as savings income; the capital element of each payment is exempt under s.717, calculated as a fixed proportion under ss.719 and 720, much like the US exclusion ratio. Savings income can use the starting rate for savings (up to £5,000 at 0% when other income is under £17,570) and the Personal Savings Allowance. An annuity bought inside an IRA is more likely to be taxed in full as foreign pension income (ITEPA 2003 s.573). Rates for 2026 to 2027 in England: 20% up to £50,270, 40% to £125,140, 45% above. Get a UK adviser’s written view on how your contract is classified.
Net result. In the first four UK tax years, the FIG regime can take the annuity out of UK tax, leaving only US tax. After that the UK taxes first and the US credits it, so you pay roughly the higher of the two. For a non-qualified SPIA, where only the income element is taxed in both countries, the annuity is tax-friendly in the UK compared with drawing down an investment account.
Does the UK have a wealth tax?
No. The UK has no annual wealth tax, so neither your savings nor a US annuity sits in a wealth tax base, and there is no wealth-tax reason to convert savings. Inheritance tax is a separate question, and long-term UK residents can be taxed on worldwide estates, so plan the estate side with a UK adviser.
Practical steps
- Add up both spouses’ pensions and Social Security in pounds; if short, savings needed are £16,000 plus 2.5 times the gap.
- If buying income instead, buy while you still have a US address, lifetime payments, no cash-out feature, with an insurer letter stating the amount “for the lifetime of the annuitant”.
- Start payments about 12 months before applying and keep every bank statement.
The trade-offs, stated once: the premium cannot be taken back, payments are level unless you add a cost-of-living rider, they arrive in dollars against a sterling threshold, and payouts are lower at younger ages. Size the annuity to the gap, and use savings where savings do the job.
Married? Make the income outlive either of you. In the UK spouses may add their incomes together, so two smaller annuities, one on each spouse, can work as well as one larger one. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Frequently asked questions
Free annuity gap analysis for the UK. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the the UK requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- Using an annuity for a visa income requirement
- Ireland Stamp 0 income requirement
- Netherlands partner permit and Box 3
- How European countries tax a US annuity
- The exclusion ratio for Americans abroad
- Immediate annuity calculator
Sources
- Immigration Rules Appendix FM: family members (E-ECP.3.1 to 3.3, E-LTRP.3, E-ILRP)
- Immigration Rules Appendix FM-SE: specified evidence (paragraphs 1, 10, 11, 11A, 13, 20, 20A, 21)
- GOV.UK: Family visa financial requirements for a partner
- Home Office guidance: Appendix FM minimum income requirement (categories A to G, currency conversion)
- HMRC: Check if you can claim the 4-year foreign income and gains regime
- HMRC manual RFIG45100: qualifying foreign income
- ITTOIA 2005 s.423: meaning of purchased life annuity
- ITTOIA 2005 s.717: exemption for part of purchased life annuity payments
- ITTOIA 2005 s.719: extent of the exemption
- ITEPA 2003 s.573: foreign pensions
- GOV.UK: Income Tax rates and Personal Allowances 2026 to 2027
- GOV.UK: Tax on savings interest (starting rate, Personal Savings Allowance)
- UK-USA Double Taxation Convention 2001 (Articles 1, 17, 24)
- ECB euro reference exchange rates (2 October 2026)
- PwC Worldwide Tax Summaries: net wealth tax rates by country
- 26 U.S.C. 3405 (withholding on pensions and annuities)
- IRS Rev. Proc. 2025-32: 2026 gift exclusion for a non-citizen spouse
- ImmediateAnnuities.com: annuity rates by age (survey September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.