Expat investing - advice for US citizens living in the UK

Having relocated to the UK from America, you may find it’s not just the accents, conversations about the weather and grocery stores that you need to get used to. Due to complex tax and reporting rules in both the US and here in the UK, it’s likely you’ll also need to adjust to a new way of managing your investments.

There are many potential pitfalls for a US expat investing in the UK. The rules and regulations can seem so overwhelming that many US expats end up avoiding it altogether. However, this is the worst thing you can do – it’s vital you stay on track with your investments to meet your long-term financial goals.

US expat investing in the UK– it’s time to find the right expertise

All you need is the right help and, thankfully, there are specialist investment managers here in the UK who can look after you and your wealth. As a US expat investing in the UK you can speak to someone in the same timezone about all your investment needs and feel reassured that you are being looked after.

When looking for the right investment manager, you need to make sure they offer a designated service for US expats – not simply an off-the-shelf solution but one that is specifically tailored to your dual UK/US needs.

A good US expat investment manager will consider all of your:

• US interests and assets, including pension arrangements
• Currency requirements and whether you want to hold investments in sterling, dollars, euros, other currencies, or even a mix of several
• Requirements for direct exposure to US markets, via government, corporate and municipal bonds or US equities
• Accounting needs and whether you want your accounting done in dollars using the US tax year
• Requirements for information to complete both UK & US tax returns.

Investment firms that are able to cater for US expats will also need to work closely with your other tax, accountancy or legal professionals to ensure your investments are compliant across jurisdictions and structured to enable the best possible outcomes. Subject to their advice, you may need to avoid certain investments including PFICs and most collective investment vehicles. You may also need to be mindful of the implications of using UK wrappers such as ISAs or SIPPs.

US expat investing in the UK – don’t leave it to chance

Now you know it’s possible to have the convenience and expertise of a locally based investment manager, don’t leave it to chance. By not getting the right advice, you could be forfeiting your long-term financial goals.

Speak to a Wealth Adviser

If you have any questions about the current environment or how market falls might offer an investment opportunity, please get in touch with us or email questions@canaccord.com.

Find this useful? Read more here:

• Why market falls or market volatility can provide a great opportunity for investors
• Transferring wealth to the next generation – what to consider
• Is political risk back?

Investment involves risk. The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested.

The investments described in this blog may not be suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment adviser.

Any tax benefits mentioned in this blog depend upon the investor’s individual circumstances and clients should discuss their financial arrangements with their own tax adviser before investing. The levels and bases of taxation may be subject to change in the future.