I am a dual UK/US citizen, living and working in the UK.
Investing in the UK whilst a US citizen is fraught with difficulties. In short:
The majority of good investment options (e.g. most Stocks and Shares ISAs) aren’t available to me as the financial institutions won’t take US citizens due to FATCA reporting requirements
A few will take me, but any tax benefits due to ISAs are essentially wiped for me as the US doesn’t recognise these benefits and so will want to tax any capital gains
Some of the most prevalent and popular investments available in the UK are actually taxed punitively by the US authorities (basically if they are Passive Foreign Investment Companies (PFICs))
Given my desire to invest, this has got me thinking about renouncing US citizenship.
However, the main benefit (and to be honest the only significant one I can think of), of hanging on to the US citizenship is that one day I can easily move to the US, where I may be able to do more good than in the UK. I am broadly working in policy, and from this angle it seems that the US is the place to be. I am worried about closing off potentially good career opportunities.
Also, it may be possible for me to be sneaky and avoid US tax whilst investing in the UK, or I may be able to invest in US (e.g in a Roth IRA), sidestepping these issues. I haven’t really figured out details here yet, but I don’t think it would be ideal.
What do you all think? On balance, should I hang on to citizenship or get rid? Appreciate y’all aren’t experts, but I would appreciate thoughts.
[Question] As an EA, Should I renounce my US citizenship?
I am a dual UK/US citizen, living and working in the UK.
Investing in the UK whilst a US citizen is fraught with difficulties. In short:
The majority of good investment options (e.g. most Stocks and Shares ISAs) aren’t available to me as the financial institutions won’t take US citizens due to FATCA reporting requirements
A few will take me, but any tax benefits due to ISAs are essentially wiped for me as the US doesn’t recognise these benefits and so will want to tax any capital gains
Some of the most prevalent and popular investments available in the UK are actually taxed punitively by the US authorities (basically if they are Passive Foreign Investment Companies (PFICs))
More on all this here if you’re interested.
Given my desire to invest, this has got me thinking about renouncing US citizenship.
However, the main benefit (and to be honest the only significant one I can think of), of hanging on to the US citizenship is that one day I can easily move to the US, where I may be able to do more good than in the UK. I am broadly working in policy, and from this angle it seems that the US is the place to be. I am worried about closing off potentially good career opportunities.
Also, it may be possible for me to be sneaky and avoid US tax whilst investing in the UK, or I may be able to invest in US (e.g in a Roth IRA), sidestepping these issues. I haven’t really figured out details here yet, but I don’t think it would be ideal.
What do you all think? On balance, should I hang on to citizenship or get rid? Appreciate y’all aren’t experts, but I would appreciate thoughts.