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    • Home • Advice • Common questions

    As a USA tax resident am I legally allowed to transfer this money into a broker account and invest in the UK markets?

    14 April 2021

    Question by Adam

    Hi, I am a British Citizen living in the USA with a USA residency/green card. I currently have over £25k sitting in my UK savings account earning a pitiful 0.1% APR interest rate. As a USA tax resident, I am researching and trying to find out if I am legally allowed to transfer this money into a broker account and invest in the UK markets (most probably a portfolio of UK index funds and ETFs). This would be a 10+ year investment strategy. I am currently not a UK taxpayer however I plan to return to the UK (very distant future) hence why I am exploring this option rather than transferring the money to the USA. Any advice (legal / tax) will be greatly appreciated. Thanks

    Answered by

    Hi Adam, that’s a tough question to answer! The US has far reaching tax implications for anyone classed as a US connected individual and you have to ensure that any investments within the UK comply with the Foreign Account Tax Compliance Act (FACTA) or there could be very heavy penalties. A great deal of UK brokers won’t take you on as a client due to the complex nature of the US tax system. I would look for an international bank or a specialist financial adviser who has expertise in this area, but make sure that you are investing in something that is regulated by the Financial Conduct Authority (FCA) for your own protection.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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