Tax Planning for US Persons Living and Working in the UK

This is as much about what not to do as opposed to what to do. The US does not like people investing outside the US. The UK has similar rules. As a result, there are a number of punitive tax laws in place designed to penalise those that do. Take a simple stocks and shares ISA, for example. Great from a UK tax perspective — income and gains not taxable (or even reportable!). From a US tax perspective, such investments are likely to be considered Passive Foreign Investment Companies (PFICs) and additional onerous reporting requirements exist in the US. Also, such income/gains may be taxed at a rate in excess of 100% (depending on how long the investments have been held).
This is just one example of the many potential pitfalls to watch out for.

So don’t be caught out by these complex, punitive rules. Contact one of our tax advisors today.