What UK investmenst are ok for US citizens

I'm moving to the UK soon and worrying about money, banks and saving.
I've always invested in mutual funds, but I see from reading this forum
its a bad idea for a US citizen to do that in the UK equivalent, something
about PFICs and 100% tax yeeks.

I don't really want to take my UK wages and ship them off to the US
as I want my savings/investments close at hand in pounds.
So what's a good place to put the money, besides the mattress, individual stocks,
what about ISAs, bank savings bonds and National Savings Certificates and Bonds?

Have you found this thread yet?  http://talk.uk-yankee.com/index.php?topic=24220.0 

It has a pretty decent discussion of investing for US tax domiclied people living in the UK.  Other than that, I really haven't figured it out yet. 

Have you found this thread yet?  http://talk.uk-yankee.com/index.php?topic=24220.0 

It has a pretty decent discussion of investing for US tax domiclied people living in the UK.  Other than that, I really haven't figured it out yet. 

Yes that's one of the threads I read, it kinda confused me and no one gave a nice simple
list of savings/investment options that are not bad taxwise for someone with a hundred pounds
to save a month

I want to save some money to get a car and maybe a downpayment on a flat so some
sort of savings plan would work. I see all the banks offer savings bonds and
the UK Government also sells savings bonds similar to I-Bonds and US Savings bonds
Are thos ok to buy or does the IRS tax those at nasty rates too.  This is
all a big education for me and slightly intimidating

HR at my new job says I'll be eligible for a pension plan with USS, Universities Superannuation Scheme, which
looks like a nice benefit and I think its ok because its a pension

Does anyone know if the National Savings Guaranteed Equity Bond is considered a PFIC
or just a regular interest bearing account?

Maybe guya will be on again sometime in the next few days and can shed some light on this.  Sweetpeach (I think) had a thread about how difficult it's been to find a financial advisor who can offer advise on investing for US-UK people.  It sounds tricky and I'm not really looking forward to it. 

Maybe guya will be on again sometime in the next few days and can shed some light on this.  Sweetpeach (I think) had a thread about how difficult it's been to find a financial advisor who can offer advise on investing for US-UK people.  It sounds tricky and I'm not really looking forward to it. 

I agree, I'll only have a small amount to invest each month so it hardly seems worth the trouble
of moving it to the US, but I'd still like to get some potential gains. Its amazing that so much
seems to be unavailable and that its so hard to find out if its going to be a tax black hole.
I even called the IRS and got nowhere, the person on the end of the phone didn't even
know what a PFIC was, I was actually a bit sympathetic as until 48 hrs ago neither did I.
It would be great if there was an International IRS help desk.

Masterblaster:

1. If you want investment advice in the UK this can ONLY be offered by a qualified IFA.
2. I am not certain you know what a GEB is.  They are popular mainly among older folks who want a long-term guaranteed (or capped) return. I don't think an IFA would think this is suitable for you.
3. If you are not domiciled in the UK you'll want/need separate offshore income and capital (plus capital gains) accounts. 
4. You'll also have to decide how to report your employer contributions to the USS for US tax purposes.
5. You can buy UK gilts of you wish, there'll just be tax on interest and gains.  If you buy non-UK fixed income however you'll be able to structure your savings to avoid UK tax if you are non-UK domiciled.
6. Don't forget Uncle Sam and the Commonwealth of Mass. in your mixing bowl.

Masterblaster:

1. If you want investment advice in the UK this can ONLY be offered by a qualified IFA.
2. I am not certain you know what a GEB is.  They are popular mainly among older folks who want a long-term guaranteed (or capped) return. I don't think an IFA would think this is suitable for you.
3. If you are not domiciled in the UK you'll want/need separate offshore income and capital (plus capital gains) accounts. 
4. You'll also have to decide how to report your employer contributions to the USS for US tax purposes.
5. You can buy UK gilts of you wish, there'll just be tax on interest and gains.  If you buy non-UK fixed income however you'll be able to structure your savings to avoid UK tax if you are non-UK domiciled.
6. Don't forget Uncle Sam and the Commonwealth of Mass. in your mixing bowl.

Yes its all pretty confusing.

I've looked at UK bank websites and there are numerous invetsment
choices, things like unit trusts I've learned to ignore, but then there are savings accounts, savings bonds,
investment bonds etc etc. without a degree in accounting its impossible for the "joe schmo" to see which are
ok from a tax perspective. Its like the scene in Raiders of the Lost Ark III where Indie has to choose the
Holy Grail from all the cups and vessels..........

I have no idea what a GEB actually is other than they say they'll return your capital with an amount of
interest that's linked to the performance of the London Stock Exchange.

A quick google tells me that "UK gilts" are UK debt securities. Are they treated the same as National Savings Bonds
I ask as the UK Government offers a National Savings GEB that I'd like to buy if it isn't a PFIC.

edit

FYI just found this UK gov site that explains UK financial stuff
 
http://www.fsa.gov.uk/CONSUMER/11_LEARN/index.html