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UK resident dual US nationality

Financial discussion for any financial queries for Expats
buffer
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UK resident dual US nationality

#349850

Postby buffer » October 22nd, 2020, 3:14 pm

All

I have a UK resident relative with dual US nationality.

They have been advised to sell all their collective holdings (eg Unit Trusts and Investment Trusts) as these are taxed punitively as 'PFIC's by the US IRS.
We are trying to work out where they can invest (other than simply in shares of ordinary trading companies) in a way which is diversified and thus fairly low risk.

I have heard that there are now some Vangard ETFs that are both regarded as 'non-PFIC' by the IRS and report to HMRC (so not taxed punitively here as foreign collectives). However, I don't know which stockbroker(s) might allow purchase of these. Vangard won't tell me as they 'don't give advice'! I am wondering whether they need to somehow open a US broking account?

I'd be very grateful for any advice on how to go about choosing:

1) a diversified non-PFIC, HMRC reporting investment potfolio and
2) a UK or EU stockbroker that would allow purchase of it.

I'll also post this on the 'tax issues' board but do let me know if there is a better place for this question.

Thanks,
buffer

TedSwippet
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Re: UK resident dual US nationality

#349892

Postby TedSwippet » October 22nd, 2020, 5:39 pm

Reply posted here:
viewtopic.php?f=49&t=25826&p=349891#p349891

Moderator Message:
All replies over on that thread please, so I will lock this one. regards, dspp


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