Cash ISA's not available to dual UK/US citizens
Hi, has anyone else come across this?
Post Office (Bank of Ireland UK) will not permit me to hold a Cash ISA with them because of my (dual) US citizenship. Darn it because they are offering the best rate right now. Other banks will allow but their rates not so good as PO. This, along with having to file US Tax reports and other financial investment limitations, is another pitfall of becoming a US citizen (dual UK). I'm beginning to think it wasn't such a smart decision to become USC I am not seeing any benefits right now of being a dual US citizen along with UKC and resident in UK. Now settled back here in UK I don't expect ever to move back to USA. |
Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by J.JsOH
(Post 10342156)
Hi, has anyone else come across this?
Post Office (Bank of Ireland UK) will not permit me to hold a Cash ISA with them because of my (dual) US citizenship. Darn it because they are offering the best rate right now. Other banks will allow but their rates not so good as PO. This, along with having to file US Tax reports and other financial investment limitations, is another pitfall of becoming a US citizen (dual UK). I'm beginning to think it wasn't such a smart decision to become USC I am not seeing any benefits right now of being a dual US citizen along with UKC and resident in UK. Now settled back here in UK I don't expect ever to move back to USA. It seems if other banks will allow you to open an ISA, this is either a PO employee who is not clear on the rules, or maybe the PO has certain rules for their ISA. For example, some ISAs have preferential rates for older adults, etc. However, it seems odd that a bank would have dual citizenship as an exclusionary condition... |
Re: Cash ISA's not available to dual UK/US citizens
I'd go and re check that with another Post Office, and make sure they know you are a UK resident not a US resident.
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Re: Cash ISA's not available to dual UK/US citizens
It's in the terms and conditions:
http://www.postoffice.co.uk/sites/de...sh_ISA_KIP.pdf Some banks are probably more willing to deal with US reporting regulations than other banks. |
Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by sir_eccles
(Post 10344367)
It's in the terms and conditions:
http://www.postoffice.co.uk/sites/de...sh_ISA_KIP.pdf Some banks are probably more willing to deal with US reporting regulations than other banks. |
Re: Cash ISA's not available to dual UK/US citizens
Yes it's FATCA related, even though the the recent UK/US agreement means that for a financial institution ISAs aren't part of FATCA. I think the PO has decided to play it safe and just cut off all US citizens. As a UK/US dual citizen I'd call my MP and complain about it. But the ISA has few advantages for a US citizen anyway as stocks and shares ISAs have to be avoided because of US tax rules and any interest on a cash ISA is taxable in the US.
IMHO it's only worth staying a US citizen if you live in the UK if you have US citizen family members and want to avoid the possibility of immigration issues, ever might want to live in the USA again or have substantial assets in the USA that you cannot easily liquidate and bring to the UK. |
Re: Cash ISA's not available to dual UK/US citizens
This may be a bit simplistic but why do they have to know that you are a dual citizen? Can't you just conveniently ignore your US citizenship? If there are forms to fill out, say you are just a UK citizen. Or am I missing something?
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Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by sunnysideup
(Post 10348384)
This may be a bit simplistic but why do they have to know that you are a dual citizen? Can't you just conveniently ignore your US citizenship? If there are forms to fill out, say you are just a UK citizen. Or am I missing something?
FACTA requires foreign banks to find and report USC account holders to the IRS. |
Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by sir_eccles
(Post 10348519)
Simplistic answer: because that's tax evasion and the IRS doesn't like that.
FACTA requires foreign banks to find and report USC account holders to the IRS. Anyhow, I have opened accounts by ignoring my US citizenship. I do not evade taxes. But - if this shit continues to get worse, I strongly advise would-be US citizens to reconsider the implications. I'm verging on renouncing mine when I retire. Land of the free my ass. |
Re: Cash ISA's not available to dual UK/US citizens
I'm also considering renouncing once I move back to the UK. The restrictions on foreign accounts are getting too much.
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Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by J.JsOH
(Post 10342156)
Hi, has anyone else come across this?
Post Office (Bank of Ireland UK) will not permit me to hold a Cash ISA with them because of my (dual) US citizenship. Darn it because they are offering the best rate right now. Other banks will allow but their rates not so good as PO. This, along with having to file US Tax reports and other financial investment limitations, is another pitfall of becoming a US citizen (dual UK). I'm beginning to think it wasn't such a smart decision to become USC I am not seeing any benefits right now of being a dual US citizen along with UKC and resident in UK. Now settled back here in UK I don't expect ever to move back to USA. |
Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by nun
(Post 10350183)
I'm also considering renouncing once I move back to the UK. The hassle of tax and the restrictions on foreign accounts are getting too much.
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Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by nun
(Post 10350183)
I'm also considering renouncing once I move back to the UK. The restrictions on foreign accounts are getting too much.
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Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by Celticspirit
(Post 10350323)
Do you have children in the USA?
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Re: Cash ISA's not available to dual UK/US citizens
Originally Posted by Giantaxe
(Post 10350354)
If it weren't for this factor, I would renounce in retirement. But I figure my children will always give me a tie to the US so it's not an option for me wherever I live.
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