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Cash ISA's not available to dual UK/US citizens

Cash ISA's not available to dual UK/US citizens

Old Oct 21st 2012, 3:44 am
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Default 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.
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Old Oct 21st 2012, 3:51 am
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by J.JsOH
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.
May be a daft question, but is it definitely because of your citizenship? Or is the person at the PO mistaking your US citizenship to mean US residence?

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...
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Old Oct 21st 2012, 4:08 am
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Default 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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Old Oct 22nd 2012, 10:49 am
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Default 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.
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Old Oct 22nd 2012, 12:17 pm
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by sir_eccles
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.
I would suspect that this definitely FATCA related.
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Old Oct 23rd 2012, 11:21 pm
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Default 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.
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Old Oct 24th 2012, 10:26 am
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Default 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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Old Oct 24th 2012, 1:20 pm
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by sunnysideup
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?
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.
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Old Oct 25th 2012, 11:34 am
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by sir_eccles
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.
No - not paying taxes owed is evasion. Having a foreign account is not evidence that you are evading taxes. FACTA can require whatever it wants, but it has no jurisdiction outside the USA - just bullying power.

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.
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Old Oct 25th 2012, 11:43 am
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Default 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.

Last edited by nun; Oct 25th 2012 at 1:33 pm.
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Old Oct 25th 2012, 1:18 pm
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by J.JsOH
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.
...and this is one of the many reasons why I have not become a citizen. Each time I become convinced that I should something happens or I should say I read something that makes me change my mind.
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Old Oct 25th 2012, 1:20 pm
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by nun
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.
I read an interesting thread about US citizens renouncing their citizenship on UK-Yankee. If I can find the thread I'll post a link here

Last edited by Brigette; Oct 25th 2012 at 1:24 pm.
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Old Oct 25th 2012, 1:42 pm
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by nun
I'm also considering renouncing once I move back to the UK. The restrictions on foreign accounts are getting too much.
Do you have children in the USA?
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Old Oct 25th 2012, 2:16 pm
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by Celticspirit
Do you have children in the USA?
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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Old Oct 25th 2012, 2:22 pm
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Default Re: Cash ISA's not available to dual UK/US citizens

Originally Posted by Giantaxe
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.
Hi....same for me.....one child born in Belfast and one in Dallas. Except for this.....sadly I would agree wih you.
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