uk pensions and isa

Group Personal Pension Plan and Stock ISAs – how are they treated by IRS + all tax implications?  Is it worth the headache of starting one or both?  Any input, or where info could be found, would be much appreciated.

A GPP is probably employer sponsored so you could include the employer contributions and growth each year or exclude these under the treaty.

An ISA is simply a wrapper so you pay regular US income taxes (including PFIC taxes) on income in an ISA.

Both would be annually reportable on forms TD F 90-22.1 and 8938 - if either holds PFICs there is likely to have to be annual PFIC reporting as well.

The prospect of having to comply with PFIC each year would not be fun. You need to understand your investment options inside the GPP....if you have tracker funds or unit trusts those are PFICs and will generate lots of paper work headaches, but they may be worth it depending on the amount of your employer's contribution.

The stocks and shares ISA will also generate PFIC filing requirements and interest and gains will be taxed by IRS as they don't recognize the tax free ISA status.....so I'd do a cash ISA and get as much interest as you can.

Many thanks for the input.  Some of it is well above my head.  Any suggestions where I can read up on differences between “include the employer contributions and growth each year or exclude these under the treaty”?

Sounds like Stocks ISA is definitely out for me – the sound of PFICs scares me.  Is it correct that if the GPP doesn’t hold “tracker funds or unit trusts” then there is no PFIC filing requirements?

Also, if any suggestions as to someone who can give professional advise on UK-USA tax?  The Big 4 accounting firms are definitely not affordable to me, but if some smaller outlet exists that does not just help to file tax returns but rather could help with setting it all up from the outset, - that would be very much appreciated.  Thank you again!