UK-based investments for USA tax resident?
Aug 27th 2017, 5:29 pm
#31
Lost in BE Cyberspace
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,425
Re: UK-based investments for USA tax resident?
That is true, the USD account I had in the UK was held in NY. However I could only access/manage the account from the UK arm of Citibank. Also I am not able to do electronic transfers from that account to another US account.
Aug 27th 2017, 5:30 pm
#32
Forum Regular
Joined: Aug 2017
Location: London
Posts: 41
Re: UK-based investments for USA tax resident?
Or..
Something else.
Aug 27th 2017, 6:42 pm
#33
I still dont believe it..
Joined: Oct 2013
Location: 12 degrees north
Posts: 2,777
Re: UK-based investments for USA tax resident?
Actually - just to throw a new spanner in the machine, a lot of offshore investing is going on via hong kong. A friend is a forensic accountant with a big interest in being a liquidator for some smaller jurisdictions. A few months back he told me that because of us and eu reporting agreements with many countries, the swiss and caribbean 'anonymous' account holders were moving investment management to be based in hong kong - physical assets in hand, where their money could properly disappear as the chinese regulated banks tell other countries they wont report anything to them, including the likes of HSBC [there only.]... Anyone able to say this isnt the case? He was clear that to do it requires a trip there, you cant open accounts there or move money electronically without reporting on the way.
Last edited by uk_grenada; Aug 27th 2017 at 6:44 pm.
Aug 27th 2017, 6:56 pm
#34
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: UK-based investments for USA tax resident?
Actually - just to throw a new spanner in the machine, a lot of offshore investing is going on via hong kong. A friend is a forensic accountant with a big interest in being a liquidator for some smaller jurisdictions. A few months back he told me that because of us and eu reporting agreements with many countries, the swiss and caribbean 'anonymous' account holders were moving investment management to be based in hong kong - physical assets in hand, where their money could properly disappear as the chinese regulated banks tell other countries they wont report anything to them, including the likes of HSBC [there only.]... Anyone able to say this isnt the case? He was clear that to do it requires a trip there, you cant open accounts there or move money electronically without reporting on the way.
Back in the 1990's Uncle Sam decided that they needed some information from the Bank of Nova Scotia (BNS). After several months of a stand-off, with BNS declaring that they were not a US bank and that the information related to a customer in a third country - Bermuda IIRC, Uncle Sam slapped a $1million/day fine on BNS, .... which BNS decided they would ignore.
After somewhere around eight months, by which time the fine was substantially in excess of $200million, BNS realized that Uncle Sam was entirely serious, so they coughed up the information despite the secrecy and privacy laws in the country where the account was held.
Aug 27th 2017, 7:02 pm
#35
I still dont believe it..
Joined: Oct 2013
Location: 12 degrees north
Posts: 2,777
Re: UK-based investments for USA tax resident?
Fine words, now show me an example of the Chinese not giving a flying XXXX what the Americans think given the level of Chinese investment involved. This is one of my accountant friends major issues that if you got money in Hong Kong banks there was no way you can get the information about it from anywhere. Effectively the new gnomes have Chinese eyes.
Last edited by uk_grenada; Aug 27th 2017 at 7:05 pm.
Aug 27th 2017, 7:13 pm
#36
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: UK-based investments for USA tax resident?
Fine words, now show me an example of the Chinese not giving a flying XXXX what the Americans think given the level of Chinese investment involved. This is one of my accountant friends major issues that if you got money in Hong Kong banks there was no way you can get the information about it from anywhere. Effectively the new gnomes have Chinese eyes.
There was an example, but I am struggling to remember the bank and the details - perhaps HSBC, and 15-20 years ago, moved money, on the instruction of a customer, from New York to Hong Kong. Somebody sued in the US to have the money returned, and despite the money being outside the US, and in a bank not headquartered in the US, and that the Hong Kong bank is a separate legal entity, not a branch, for some odd reason, one that I cannot explain, the bank capitulated and returned the money to the US. ..... I can't help but wonder if the customer had any redress for the loss of their money against the bank in Hong Kong over which the US had no jurisdiction.
Last edited by Pulaski; Aug 27th 2017 at 7:27 pm.
Aug 27th 2017, 7:20 pm
#37
Forum Regular
Joined: Aug 2017
Location: London
Posts: 41
Re: UK-based investments for USA tax resident?
Fine words, now show me an example of the Chinese not giving a flying XXXX what the Americans think given the level of Chinese investment involved. This is one of my accountant friends major issues that if you got money in Hong Kong banks there was no way you can get the information about it from anywhere. Effectively the new gnomes have Chinese eyes.
Let's just keep things simple.
UK citizen in America with UK money sitting in a 0% interest account.
The only problem is, the UK citizen isn't earning any interest on their capital. However, since OP is in the US, why doesn't OP register an LTD in Britain, file annual returns, and then open up and have the LTD start a holding company of an offshore LLC where they live in America and make it a US investment from Britain?
That way they'd get to save their money in a US savings account and report no profit to be taxed on in the UK for corporation tax since there would be no profit to the LTD after founding the LLC which is investing into a savings account. Your UK LTD should become an MNC but, could be something to think about to get your money around for growth, that way, Uncle Sam should see this as a domestic tax issue and the LTD in Britain won't report a profit.
Unless OP is just a tax exile from the UK, in which case, OP owes the UK taxes so would be liable to letters asking OP to pay.
Last edited by ilikeitlikethat; Aug 27th 2017 at 7:32 pm.
Aug 27th 2017, 7:30 pm
#38
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: UK-based investments for USA tax resident?
PRC take this revenue and launder it in countries like North Korea and that's how North Korea can afford to arm themselves to the teeth.
Let's just keep things simple.
UK citizen in America with UK money sitting in a 0% interest account.
The only problem is, the UK citizen isn't earning any interest on their capital.
Let's no_ complicate things with offshore and tax avoidance.
However, since OP is in the US, why doesn't OP register an LTD in Britain, file annual returns, and then open up and have the LTD start a holding company of an offshore LLC where they live in America and make it a US investment from Britain?
That way they'd get to save their money in a US savings account and report no profit to be taxed on in the UK for corporation tax since there would be no profit to the LTD after founding the LLC which is investing into a savings account. Your UK LTD should become an MNC but, could be something to think about to get your money around for growth, that way, Uncle Sam should see this as a domestic tax issue and the LTD in Britain won't report a profit.
Unless OP is just a tax exile from the UK, in which case, OP owes the UK taxes so would be liable to letters asking OP to pay.
Let's just keep things simple.
UK citizen in America with UK money sitting in a 0% interest account.
The only problem is, the UK citizen isn't earning any interest on their capital.
Let's no_ complicate things with offshore and tax avoidance.
However, since OP is in the US, why doesn't OP register an LTD in Britain, file annual returns, and then open up and have the LTD start a holding company of an offshore LLC where they live in America and make it a US investment from Britain?
That way they'd get to save their money in a US savings account and report no profit to be taxed on in the UK for corporation tax since there would be no profit to the LTD after founding the LLC which is investing into a savings account. Your UK LTD should become an MNC but, could be something to think about to get your money around for growth, that way, Uncle Sam should see this as a domestic tax issue and the LTD in Britain won't report a profit.
Unless OP is just a tax exile from the UK, in which case, OP owes the UK taxes so would be liable to letters asking OP to pay.
Last edited by Pulaski; Aug 27th 2017 at 7:40 pm.
Aug 27th 2017, 7:34 pm
#40
Forum Regular
Joined: Aug 2017
Location: London
Posts: 41
Re: UK-based investments for USA tax resident?
much obliged 
Aug 27th 2017, 7:49 pm
#41
Forum Regular
Joined: Aug 2017
Location: London
Posts: 41
Re: UK-based investments for USA tax resident?
It was in response to @uk_grenada
Last edited by ilikeitlikethat; Aug 27th 2017 at 7:51 pm.
Sep 17th 2017, 3:38 pm
#44
Just Joined
Joined: Aug 2017
Posts: 14
Re: UK-based investments for USA tax resident?
Wow! Complicated stuff.
Can we get back to the OP and me with the same problem. Living and paying tax in USA but have inherentance money in UK at 0% and U.K. Banks and investment firms won't let us invest in UK interest bearing accounts . Need to do until exchange rate improves or our life goals change.
How can I invest GBP in something legal without paying crazy USA taxes? Or taxes in both?
Tks Warren
Can we get back to the OP and me with the same problem. Living and paying tax in USA but have inherentance money in UK at 0% and U.K. Banks and investment firms won't let us invest in UK interest bearing accounts . Need to do until exchange rate improves or our life goals change.
How can I invest GBP in something legal without paying crazy USA taxes? Or taxes in both?
Tks Warren
Sep 17th 2017, 3:50 pm
#45
I still dont believe it..
Joined: Oct 2013
Location: 12 degrees north
Posts: 2,777
Re: UK-based investments for USA tax resident?
PRC take this revenue and launder it in countries like North Korea and that's how North Korea can afford to arm themselves to the teeth.
Let's just keep things simple.
UK citizen in America with UK money sitting in a 0% interest account.
The only problem is, the UK citizen isn't earning any interest on their capital. However, since OP is in the US, why doesn't OP register an LTD in Britain, file annual returns, and then open up and have the LTD start a holding company of an offshore LLC where they live in America and make it a US investment from Britain?
That way they'd get to save their money in a US savings account and report no profit to be taxed on in the UK for corporation tax since there would be no profit to the LTD after founding the LLC which is investing into a savings account. Your UK LTD should become an MNC but, could be something to think about to get your money around for growth, that way, Uncle Sam should see this as a domestic tax issue and the LTD in Britain won't report a profit.
Unless OP is just a tax exile from the UK, in which case, OP owes the UK taxes so would be liable to letters asking OP to pay.
Let's just keep things simple.
UK citizen in America with UK money sitting in a 0% interest account.
The only problem is, the UK citizen isn't earning any interest on their capital. However, since OP is in the US, why doesn't OP register an LTD in Britain, file annual returns, and then open up and have the LTD start a holding company of an offshore LLC where they live in America and make it a US investment from Britain?
That way they'd get to save their money in a US savings account and report no profit to be taxed on in the UK for corporation tax since there would be no profit to the LTD after founding the LLC which is investing into a savings account. Your UK LTD should become an MNC but, could be something to think about to get your money around for growth, that way, Uncle Sam should see this as a domestic tax issue and the LTD in Britain won't report a profit.
Unless OP is just a tax exile from the UK, in which case, OP owes the UK taxes so would be liable to letters asking OP to pay.
Actually the PRC dont need to launder anything abroad anywhere, their internal economy is vast and completely obscure, if they wanted to, but why would they want to ?
North Korea on the other hand is suspected to be forging american and other money, and as the recent murder of kim jomg ils brother highlighted, the family has major asian investments and a thriving arms industry.