UK SIPP and ISA for US Citizen

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UK SIPP and ISA for US Citizen

Postby roblpm » Sat Mar 16, 2013 5:34 am

I have touched on this in the Expat Vanguard thread but wanted to start a UK specific thread.

I am UK domiciled, lived here all my life and am a US citizen due to my Mother.

Happily blissfullly ignorant of the problems that that leads to for 44 years! That is now over!!

To cut a long story short I would be grateful if anyone knows

a) A SIPP provider that doesnt exclude US citizens in their Ts and Cs. I am in one at the moment which I shouldnt be in! So I think the prudent thing is to transfer.

b) (Optional!) A UK fund supermarket/ISA that has access to USA based Vanguard ETFs on the HMRC reporting list. (Though I can quite get my head around what having any future money I have in these funds means for currency risk as I will be in the UK forever!).

Before anyone tells me of the onerous reporting requirements I now have I am aware of Tax Returns, FBARs, forms xxxx, yyyy etc etc etc!!! I have plans for all the other bits but my SIPP is the bit I havent figured out what to do with yet!! Once I have regularised my position then I can decide whether to stay in it or renounce my US citizenship!

Thanks in advance,

Rob
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Re: UK SIPP and ISA for US Citizen

Postby roblpm » Wed Mar 20, 2013 7:28 pm

OK seeing as there are no other people in my predicament I will answer myself!!!

I emailed Sippdeal who said no problem so I am transferring to them. My reading is that SIPPs can invest in anything and not get in trouble with the PFICs rules.

Not got any further on the ISA side. Cant see the US Vanguard ETFs on the Sippdeal trading platform. I wonder if UK Wrappers sell these US funds? They have a CUSIP number not an ISIN. Anyone know??

Cheers

Rob
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Re: UK SIPP and ISA for US Citizen

Postby FoolishJumper » Thu Mar 21, 2013 1:44 am

Wish I could help, but unfortunately I'm soon to join as a UK-based U.S. citizen, after 8 odd years of expat U.S. contracts, so while I'm very curious what you manage (and would greatly appreciate if you report back), I have no info to help at the moment.

Of note I've seen Interactive Investor and TD Waterhouse being mentioned as 'low cost' for both SIPP and ISA with access to ETFs when I was reviewing my offer and benefits for my new job.

I had seen someone here (thought it was that expat Vanguard topic, but perhaps not...) mention buying vanguard funds with very low fees in a UK ISA, so I am certain it is out there.
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Re: UK SIPP and ISA for US Citizen

Postby TedSwippet » Thu Mar 21, 2013 7:38 am

FoolishJumper wrote:... TD Waterhouse being mentioned as 'low cost' for both SIPP and ISA ...

From the TD SIPP terms of service:
1.1 We will not accept applications to become a Member of the TD SIPP from;
1.1.1 any US or Canadian resident or US national; or

And from TD's ISA application form:
To apply for an account online please confirm:
You are a private individual aged 18 or over
You are a UK resident
You are not a US person

You might be in better shape with Interactive Investor. Until they too start worrying about FATCA, that is.
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Re: UK SIPP and ISA for US Citizen

Postby SippTechie » Fri Mar 22, 2013 3:52 am

There are various reasons why some SIPP providers don't accept US citizen/resident/person clients, but FATCA should not be one of them.

There are exemptions from the reporting requirements for SIPPs (and ISAs). General Investment Accounts are caught under FATCA and so you may find some companies take the view that it is easier not to allow US clients on their investment platform at all, rather than saying "we'll let you set up a SIPP (and/or ISA) but we won't let you set up a General Investment Account".

Disclosure: I work for one of the companies already mentioned on this thread, though avoid posting material specifically about them where possible - I'm just trying to help out.
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