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As a U.S. passport holder living in the UK as a British citizen, what can I not invest in?

Megan | Scotland| 11/06/2019 | 0

  • Private Pension
  • Stocks and Shares ISA
  • Shares

Megan's question in full

As a USA passport holder as well as a British citizen living in the UK are there certain things I may NOT invest in?

Zoë Dagless's Response

Hi Megan,

First off...

This is a highly specialised subject due to the different US requirements. So I would say that speaking to an adviser who specialises in this, would be the best idea. They will be able to give you a better answer than me.

US Tax

All US passport holders have the requirement to file a tax return by the IRS (the US tax authorities) and all investments need to be reportable for US tax reasons.

There is a double tax treaty in place so you wouldn’t get taxed double, but the US want to know where all your assets are held.

UK Funds

A lot of the funds in the UK are not reportable in the way that the US would like them to be. Even things like ISAs are not seen as tax free for US tax reasons, so you wouldn't be able to invest in them.

Things which are reportable in the correct way are single shares held outside of wrappers (e.g. an ISA is a tax wrapper around your investments).

Pensions and the funds you invest in are not usually reportable in the US. So a lot of people take a view that for investing, they are fine in the UK.

However...

NOTE: I would urge any US passport holders to seek full financial advice, to stop an angry letter from the IRS from coming their way.

Hope this helps.

 

 

Just be aware...

We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA. 

This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.

We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.

Our Expert

Zoe Dagless - landscape.jpg

Zoë Dagless

Zoë is a Chartered Financial Planner at Addidi. She is passionate about combining her technical knowledge and experience to create bespoke plans for clients. Addidi advises enterprising women and their families, to plan and manage their wealth. Addidi also provides a collaborative club for women to invest in SMEs.

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