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.

dunroving

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...

Mummy in the foothills

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.

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.

Giantaxe

I would suspect that this definitely FATCA related.

nun

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.

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?

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.

sunnysideup

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.

nun

I'm also considering renouncing once I move back to the UK. The restrictions on foreign accounts are getting too much.

Brigette

...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.

Brigette

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

Celticspirit

Do you have children in the USA?

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.

Celticspirit

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