nun

I'm a UK/US dual national and investingating moving back home to the UK. I've learned that there is some every punative IRS taxation on UK unit trusts etc which will apply to Green Card holders and US citizens living in the UK. Does anyone know anything about this?

User Name

You consult with an accountant as to IRS tax implications, if any, and ring up the UK Inland Revenue to get some feedback on UK tax implications, if any.

nun

Minimum US Federal tax on UK unit trusts (termed Passive Foreign Investment Companies) if you are a green card holder or UK/US dual citizen is 35%. Gains are t6axed as income not capital gains. You have to declare gains EVERY year even if you don't sell the shares. For each year you don't declare you have to pay interest too. So if anyone's a Green card holder or a UK/US dual citizen and you hold UK unit trusts no matter where you are living you might have a big tax bill you are unaware of.

Sorry if this is bad news, I got a shock when I found out and I though I would ask what others knew about it.