- December 2, 2023
- Posted by: legaleseblogger
- Category: Related News
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**Moving to the US with Existing ISA Holdings: Exploring Options and Considerations**
As a lifelong resident of the UK, I have diligently built a substantial sum in my Individual Savings Account (ISA) over the years. However, my upcoming move to the United States early next year poses a unique set of challenges and considerations for my ISA holdings. While I intend to return to the UK in 2-3 years, the uncertainty of the future requires me to carefully evaluate my options and potential financial implications of maintaining the ISA wrapper.
In this context, the AI Legalese Decoder can be an invaluable tool in navigating the complex legal and financial landscape of cross-border investment and tax implications. By utilizing the AI Legalese Decoder, I can gain a clear understanding of the legal nuances and tax regulations governing international investment vehicles, such as ISAs and US-approved index funds. This will enable me to make informed decisions and develop a comprehensive strategy for preserving and growing my ISA holdings while living in the US.
As I explore my options, I am keen on retaining the ISA wrapper with the anticipation of returning to the UK. However, I also recognize the fact that the US does not recognize the ISA wrapper and imposes punitive taxes on Exchange Traded Funds (ETFs). Given these considerations, I am seeking guidance on the feasibility of holding a US-approved index fund within a UK ISA, as this would align with my ideal investment strategy.
Furthermore, I am open to alternative investment avenues that comply with both UK and US regulations, should holding a US-approved index fund within a UK ISA prove unfeasible. This includes direct investment in a diversified portfolio of bonds and equities or locking the funds in a higher-rate savings product that qualifies for the ISA wrapper.
In conclusion, the AI Legalese Decoder can offer me valuable insights and clarity as I navigate this complex financial and legal landscape, allowing me to make well-informed decisions and optimize my investment strategy while living in the US.
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Original:
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Rewritten:
How AI Legalese Decoder Can Help You with Legal Documents and Contracts
AI Legalese Decoder is an innovative software that employs the power of artificial intelligence to streamline and grasp intricate legal terminology. By leveraging its cutting-edge technology, this tool can provide invaluable assistance to lawyers and other legal professionals in promptly and precisely interpreting a wide array of legal documents and contracts. The software’s advanced algorithms enable it to effectively analyze and translate complex legal jargon into easily comprehensible language, thereby facilitating a deeper understanding not only among legal practitioners but also among individuals without a legal background. This has the potential to revolutionize the legal industry by significantly reducing the time spent on deciphering complicated legal texts and improving overall efficiency.
How AI Legalese Decoder Can Help with the Situation
The AI Legalese Decoder can be a game-changer for legal professionals by significantly enhancing their capabilities in interpreting and understanding complex legal documents and contracts. Its advanced algorithms, powered by artificial intelligence, can efficiently analyze and decode legal jargon, providing a clear and simplified version of the content. This can be particularly beneficial for lawyers and legal professionals who need to quickly grasp the intricacies of various legal texts, saving them valuable time and effort. Additionally, the software’s ability to translate legal language into plain language can also benefit non-legal professionals, making it easier for them to comprehend legal documents and contracts. By leveraging the AI Legalese Decoder, legal professionals can streamline their workflow, improve their productivity, and ultimately deliver better outcomes for their clients.
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****** just grabbed a
https://www.bogleheads.org/wiki/Non-US_investor%27s_guide_to_navigating_US_tax_traps
Your last bullet point is the solution here, annoyingly.
To be a US approved ETF it would need to be a US based fund, from my understanding that is not on offer for.
As you will only be in the US for a few years you can sell them before getting there, put in cash, and then reinvest when you get back to the UK.
Also, the US PFIC rules are mostly a problem when you sell. Can you avoid selling while you are in the US? If so, you will only pay tax on the dividends maybe. Might be worth chatting with a US tax expert.
Not an expert, but I think your only option is to liquidate inside the ISA and then leave it as cash(if the cash rate is acceptable) or transfer it to a cash product with a bank that will accept a US resident. You may if you have a lot of assets be better just accepting the risk of a single bank for it all to simplify your reporting.
As long as its in the wrapper you will keep it in it for uk purposes so when you return to the UK you can just buy back in after transferring back to an investment account.
Interest rates are pretty high at the moment, so it’s not going to be that big a deal to hold cash if you can get a decent rate. Just start investing in the US using local products for best advantage and work out the exit plan for those when the time comes.
You could also try transferring the asset class, property for example is outside US tax regimes outside of the US as property tax is usually done by state and so you would only pay on income as long as you didn’t sell it before you left the US(unless it made a loss and ironically that might be worthwhile in the US).
US tax is pretty ridiculous, I’ve only considered moving as a diplomat(and so exempt from tax) after the hassles my parents has with it and the laws were simpler back then than they are now.
I went through this earlier this year. ThereÔÇÖs lots of good info over on Britishexpats.com who have been through this before, and thereÔÇÖs lots of confusing and contradictory information everywhere.
In the end I decided to liquidate my ISA and moved the cash to my US Fidelity account.
I kept my SIPP, but there are only a few providers that will allow you to be a non-resident. I use AJ Bell but I think I read that they no longer accept new non-UK resident customers. I also moved my kidÔÇÖs 2 JISA over to AJ Bell as there is no way to liquidate those.
Get a UK tax accountant to help with your first couple of years of Self Assessment. ThereÔÇÖs a good chance youÔÇÖll be considered a UK tax resident for the first year after you leave the UK.
IÔÇÖd also recommend getting a US tax accountant, too, but IÔÇÖve struggled to find anyone I felt comfortable with so IÔÇÖm going it alone this year.
Edit: also, do this all BEFORE you could be considered a US tax resident.
Hi /u/tm171, based on your post the following pages from our wiki may be relevant:
– https://ukpersonal.finance/index-funds/
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