UK-based US-expat: How to invest while keeping the IRS and HMRC happy?

[supescritter]

Hello everyone. I've tried to be compact with my writing.

US expat in UK for the long-term, probably 'forever'. Working a normal office job in the UK for a global company (no plans to relocate so not factoring that in here). I am aware of the extent/magnitude of IRS reporting duties, and the many ways by which an expat might inadvertently increase their reporting obligation and taxation rate to a stratospheric level. I am by no means an expert, but I'm trying to be careful from the very beginning. I also currently know next-to-nothing about the tax system of the UK, but I don't take it any less seriously, and will change that in the coming year.

Below are some questions that have been boring holes in my head for a little while now. If anyone can answer even a single one of them, it is much appreciated.

• Are there any firms that will accept a US taxpayer, with a UK address, to buy assets (and occasionally sell), that are both IRS and HMRC compliant?
• If the answer is 'no', does using a US-address with an American brokerage introduce even a whiff of tax or other legal complexity, from the perspective of the IRS and HMRC? e.g. FATCA
• Are there UK-based firms which accept US-taxpaying UK-based clients, who invest in IRS and HMRC-safe assets? As in, all US-domiciled so as not to introduce PFIC etc.
• Is there an inflection point, where one has enough in returns from various investment approaches, to fully outweigh increased reporting and taxation burdens? That is, are there benefits to scaling with one's investment such that the rate of increases in gains outstrips the associated rate of increases in reporting and taxation costs?
• Are there US-domiciled ETF's/all-US investments, that are HMRC-reporting, PRIIPs complicant, that would actually be accessible to myself?
• What does buying/holding/selling US stocks directly look like for a UK-based US person like myself?
• Do any UK based US expats have words of wisdom about filing? I have a workplace pension, looks like it will be treated fairly under the Tax Treaty, but I am sure there are many intricacies, so any pointers are valued. Same goes for advice on opening accounts, buying a house, etc., all of which I've read have their in's and out's.

Thank you for reading. I am sure there are many ways to go about this whole thing, though not all will be available, or appeal, to me. For what it's worth, I don't have much income, but I will be taking investing seriously, and I live for the long-run. I kick myself every day for not starting sooner, and I have faith that there is a way to make this work.

 

[laurence99]

@supescritter Hello,

• Charles Schwab offers service to US citizens living in the UK.
  
  https://www.schwab.co.uk
• You should alway use the address where you reside to open accounts, do not use a US address if you live in the UK.
• Schwab is US based but registered in the UK, they can advise regarding their PFIC and non-PFIC options.
• Every situation is different, you may need the assistance of a cross-border financial advisor and a cross-border tax professional.
• You can check with Schwab but it’s my understanding that you can access these only if you have a relationship with an Investment Advisor.
• Same as 4.
• Professional Advice > than words of wisdom.

Pleasure to help. Let me know if you have other questions. If you ever need a cross border financial advisor, let us know:

https://www.white-lighthouse.com

 

[dugbeard]

@supescritter Do you have any retirement/brokerage accounts open in the US? If so, with which company?

Outside of that, your best bet for retirement allocation in most likely your workplace pension due to the tax advantages you will receive.

 

[cade_one]

@supescritter The US Alumni Club in the UK has occasional seminars on these subjects. There is one on Thursday:

https://www.usalumni.club/events/fi...lenges-for-americans-living-in-the-uk-nov2020