National Savings & Investments bonds

There's a whole can of worms here, and we all are aware of the multiple ways accounts, the searches for indicia, and attempts to define reporting accounts may become confusing. A UKC, resident in the US on a green card, may or may not know they are a USP. Judging from posts on the BritishExpats site, many have simply changed their address on a UK account to a parent, sibling, or friends address in the UK. Given that information NS&I, or for that matter any UK FFI, will classify them as resident in the UK and it will be assumed they pay UK tax even though they are in fact a USP. If they have rental property in the UK they may file a UK tax return.

It's the UK FFI's that determine who is a USP, and it's hard to imagine all UK FFI staff being 100% on top of every account and every exact definition as given in the IGA. HMRC only forward the info from the FFIs to the IRS.

I was under the impression that FFIs who are deemed compliant were still required to have a GIIN (FATCA registration number with the IRS) in case they discovered a reportable account. Of the 77,000 (supposedly) FFIs worldwide who have registered so far (as of a week ago), many UK building societies have a GIIN including Chelsea, West Bromwich, Yorkshire, Coventry, Nottingham, and Nationwide. What is surprising is that some, including Derbyshire, Dunfermline, Swansea, and Dudley do not have a GIIN. NS&I does have a GIIN.

I suspect the NS&I misleading (incomplete?) T&C's are only the beginnings of what will prove to be any number of unclear directives and rulings from the UK FFIs. And NS&I are supposedly controlled by the UK government; the same government that signed the IGA.

As for any legal challenges, it will need to be progressed through the European Courts, not a UK Court. See: UK Parliamentary Sovereignty.

   

The story is now in The Times as well: http://www.thetimes.co.uk/tto/money/savings/article4123094.ece

The story is now in The Times as well: http://www.thetimes.co.uk/tto/money/savings/article4123094.ece

Any way to read this article without being a subscriber to The Times?  I can't get through their paywall ...

Is there any update on this ?  I was hoping to open a NS&I savings account with my wife when we move to the UK this summer.   I'm a UK/US dual and she's a US citizen, but we'll both be UK resident for tax purposes.

The NS&I brochures seem quite clear that a US citizen cannot be an account holder at NS&I

Is there any update on this ?  I was hoping to open a NS&I savings account with my wife when we move to the UK this summer.   I'm a UK/US dual and she's a US citizen, but we'll both be UK resident for tax purposes.

The NS&I brochures seem quite clear that a US citizen cannot be an account holder at NS&I

After numerous enquiries to NS&I (relating to the 65+ Growth Bonds on limited offer), I went through this exchange of Emails:

My Email: (relevant portion only)
I am a British Citizen. I am resident in the UK, pay tax yearly to HMRC on the arising basis, and I have a UK current bank account.

I am also a USA/UK dual citizen.

Bearing in mind clause 22(a), General limitations, of your Terms and Conditions for the bonds; am I allowed to invest in the 65+ Guaranteed Growth Bonds?

The NS&I response:
As a British Citizen, resident in the UK, you are entitled to purchase the bond.

That is the extent of the NS&I response, it said nothing more. This was for an account in my name only. Make of that what you will. It states the obvious, and really doesn't address the US problem. As regards a US only citizen resident in the UK opening a joint account with a US/UK citizen, try Emailing NS&I with a query giving your circumstances.

Thanks.  I emailed them and got a similar reply: they even said my wife (USC only) could open a joint account with me provided we were both UK resident for tax purposes.

I guess the only think to do is to try to open the account and see if they refuse it .... oh, and be ready to put the funds elsewhere at short notice if they ever change their minds in the future.