warren505

Thanks guys, clearly there are not good option for investing GBP in U.K. As a USA tax payer.
A little frustrating as it applies only to US tax payers but giant corperations like apple , google and who knows who else get away with some weird tax avoidance.....sort of legally!

As an aside I see that U.K. Is now has a tax free for savings interest some sort of sliding scale but in the £500-1000 range. A good deal. The US taxes your very first dollar of savings interest income....... Regan took away the $400 exemption...... and they complain about low savings in the USA!
Cheers Warren

uk_grenada

A few other options, in the uk, bullion held for investment attracts no vat and can be freely imported and exported with no taxation issues. In addition, bullion bought from the uk mint [uk minted 1oz bullion coins for example] attract no capital gains tax over time, and of course can be kept anywhere globally if the holding country has no issues.

You can also buy other unusual investments but be careful that they really are proper investments. Wine for example has seen plenty of scams/dubious schemes, but if you choose wisely antiques and other fine art can be an excellent investment. Eg wedgewood fairyland lustre ware is portable, has done very well, and shows no sign of slowing, as its a global favourite, not limited to american or japanese lovers. I know of a collection of antique [victorian and post] firearms that has made a mint. Antique cars, motorbikes, postage stanps...

If you have a personal understanding of a marketplace, use it... Of course you choose WHERE when and how to sell or even pass on as inheritance investments like that...

uk_grenada

I think, like isa's, the tax free first x on savings is for residents only, it replaces the old exemptions on ones first investment profits.

durham_lad

As a non resident I never paid HMRC any tax on my UK bank interest anyway, but did pay IRS tax on it.

As a UK resident I have ISA and a little regular interest but although they are exempt from HMRC I still pay IRS tax on it as the IRS taxes all interest including that from ISA's regardless of where I live.

Cook_County

Collectibles - including gold - are taxed at the collectible tax rate; which is higher than regular US income tax rates on capital gains.

mrken30

UK CGT is not paid on any UK currency including gold sovereigns in the UK, not the US.

In WA state, no sales tax is due on US gold currency such as Eagles. However the US has been known to steal/confiscate gold from it's citizens.

Bullion , not coins, are taxed the same as any other asset.

uk_grenada

Well that would depend on when such a capital gain was realised, where you are taxed at that time, if a gain is actually realised by you, and whether that regime recognised monetary inflation too. E.g. There is no capital gains or inheritance tax here.

mrken30

Looks like there is some caution to be made against investing in peer to peer lending.

Peer-to-peer defaults in focus as UK consumer credit conditions worsen - Business Insider

warren505

Hi well that's ugly! Taxing ISA. I tried to open an ISA but could not as I am resident in USA with a U.K. Dual. They were just reporting on radio re tax laws they think they can change that Income under $100000.00 is exempt but still had to be reported. I guess it does not apply to investement type income?
Anybody know how to find out the current limited etc?and what it applies to?
As the OP I'm trying to find a way to invest money from Inheritance in the U.K. Until exchange rates improve .
Thanks

durham_lad

The exemption you refer to is the Foreign Earned Income Exclusion and does only apply to earned income. For about 10 years while living in the USA I paid US taxes on a UK pension as well as UK bank interest.

The FEIE is indexed linked and is about $101k
https://www.irs.gov/individuals/inte...n-requirements

warren505

Thank you!
I'll read carefully but it looks like there are no good options.....
Warren

mrken30

There are no easy option, but if you really want UK fund, invest in a tax efficient account in the US and buy non hedged and hedged UK ETFs. You will lose a tiny bit on currency exchange but you money can be protected to some extent against currency fluctuations and you should make some gains.

warren505

warren505

mrken30

I think you may be missing the point here. I transfer my GBP earnings into my US bank account. Then using dollars I buy EWU ETF in my Merrill Edge account. The iShares MSCI United Kingdom ETF seeks to track the investment results of an index composed of U.K. equities. So yes I am not directly investing British Pounds, but I am still investing British Pounds in UK equities indirectly. To be fair the expense ratio on the US fund is lower than I used to pay in the UK.