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Topic: ISAs and PFIC  (Read 1352 times)

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ISAs and PFIC
« on: September 11, 2018, 06:24:10 PM »
It's been awhile since I visited this forum, so sorry to raise an old issue again.

I'm a dual US/UK citizen permanently resident in the UK.  I'd like to open a share-based ISA with a broad market exposure such as that provided by an index fund or mutual fund.  Am I correct in assuming that it is still a no-no to invest in UK mutual funds due to PFIC rules?  If so, are there any broad-based share ISAs that wouldn't fall foul of the rules?

https://thunfinancial.com/home/american-expat-financial-advice-research-articles/american-expat-pfic-uk-non-reporting-fund-investment-trap-article/


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Re: ISAs and PFIC
« Reply #1 on: September 11, 2018, 06:51:34 PM »
There are a (very) few UK based funds that provide data enabling the investor to use a QEF election. Alternatively, you could use M2M and pay tax on phantom gains each year to avoid the excess distribution rules...


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