Moving to the US does not mean your UK savings and investments disappear — but it does mean the rules around them change significantly.
ISAs, while tax-free in the UK, are not recognised as tax-advantaged by the IRS and may need to be reported on US tax returns.
Other non-US investments including unit trusts and OEICs may be classified as PFICs (Passive Foreign Investment Companies) under US tax rules, which carries significant compliance obligations.
We provide clear, practical advice on what you can keep, what you should restructure, and how to manage your UK savings in a way that minimises your US tax exposure.
No. While ISAs remain tax-free under UK rules, the IRS does not recognise the ISA tax-free status. Growth and income within an ISA is generally taxable in the US. This does not mean you must close your ISA, but it does mean you need to account for it correctly on your US tax returns.
A PFIC (Passive Foreign Investment Company) is a non-US fund or investment vehicle — including many UK unit trusts, OEICs, and investment bonds. US residents who own PFICs face complex and potentially punitive tax treatment. We work with clients to review their UK holdings and advise on the most tax-efficient approach.
