USC Expat in UK-Buy ETFs?

Is it okay to buy Vanguard, Reporting Fund, ETFs in UK brokerage account? OR Does it have to be purchased in US-based brokerage account? Thank you.

It is almost certainly okay, but to be absolutely certain, look it up at the link below. I would  expect a UK registered brokerage would only have funds that report into HMRC since it is mostly UK customers that they are looking for. My wife’s brother has his investments in Vanguard.co.uk funds.

https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds

I believe you said that you are a USC. Vanguard.co.uk does not allow USCs, at least not the last time I inquired.

https://intl.assets.vgdynamic.info/intl/ukpi/documents/legal/terms-conditions.pdf

Our Accounts and the Vanguard Funds are not available under these Terms to US persons.
“US persons” include any citizen of the United States of America (US), any person holding a US passport (regardless of residency or domicile), and any person who has an obligation to pay
tax to the US tax authorities on their worldwide income. If you are or you become a US person
we may restrict investment dealing on your Vanguard Funds and the services we offer you and inform the relevant authorities. For an ISA or a General Account only, we may alternatively sell your Vanguard Funds and close your Account.

It's completely ok for you, but I have yet to find a UK based broker that will let you (with an edge exception), for two reasons:

1. Very few UK brokerages want to deal with US citizens at all. Hargreaves Lansdown, AJ Bell (for only some account types), and Interactive Brokers are about it, as far as I know.

2. UK MiFiD rules (inherited from the EU) prohibit UK residents from buying ETFs that don't publish a Key Information Document. No US funds do so.

Exception: if you can meet the Professional Investor requirements, Interactive Brokers will recognize that and let you buy US ETFs. That's 2 of a) 10+ transactions per quarter over the past 4 quarters b) portfolio >500kEUR c) working in a relevant part of the financial sector.

Other workaround: buy options on the ETFs you want and exercise them.

I have a SIPP with Halifax Share Dealing trading as Iweb https://www.iweb-sharedealing.co.uk/ managed by AJ Bell - attractive because of low management fees (flat rate instead of % value). They know (or at least knew!) I was a UK/USC when I opened the account. They sell Vanguard ETF's although they are from Vanguard Group  (Ireland) Ltd.
 https://www.markets.iweb-sharedealing.co.uk/etf-centre/

I have a SIPP with Halifax Share Dealing trading as Iweb https://www.iweb-sharedealing.co.uk/ managed by AJ Bell - attractive because of low management fees (flat rate instead of % value). They know (or at least knew!) I was a UK/USC when I opened the account. They sell Vanguard ETF's although they are from Vanguard Group  (Ireland) Ltd.
 https://www.markets.iweb-sharedealing.co.uk/etf-centre/

taxi, note that this is ok because it's in a SIPP - buying non-US ETFs in a SIPP is fine, but in a taxable brokerage account or ISA, they're exposed to the full pain of US PFIC rules.

taxi, note that this is ok because it's in a SIPP - buying non-US ETFs in a SIPP is fine, but in a taxable brokerage account or ISA, they're exposed to the full pain of US PFIC rules.

All noted with thanks - I've only ever invested within the SIPP wrapper and will continue to do so - PFIC reporting would be too much hassle.