AJ Bell SIPP

Hello,

My wife (US citizen) and I (UK citizen) will possibly move to the USA in a 1-2 years. I'm doing some research regarding my pensions. I found the following reply to the topic here very useful.

https://talk.uk-yankee.com/index.php?topic=95426.msg1283776#msg1283776

Most of my investments are in the Vanguard lifestrategy 60 in the UK and I'm aware that this is a PFIC. For those who have a AJ Bell SIPP, what products are you buying that's passive and are not PFIC? I'm thinking of buying into US domiciled ETFs like VTI however I can't seem to see this available in AJ Bell

Appreciate some help
thank you

I've just posted separately today but AJ Bell have just changed their T&C's and won't accept US citizens opening a SIPP.

Discrimination on the basis of Nationality (inc Citizenship) is illegal to me (Equality Act 2010)  but who will take up the cause?

I'm thinking of buying into US domiciled ETFs like VTI however I can't seem to see this available in AJ Bell

Slightly confused by this statement. The domicile of the ETF may be in the US, but for a US Person (for example, a UKC resident for tax purposes in the US) the determination of a PFIC rests with the location of the broker. If AJ Bell (UK) are used, or Vanguard UK, the ETFs will be PFICs since the broker is UK (foreign) based. The US strongly discourages the use of non-US investment services by inflicting the punitive PFIC taxation.

The exception may be if the foreign broker adheres to all IRS/SEC reporting and regulations.

Discrimination on the basis of Nationality (inc Citizenship) is illegal to me (Equality Act 2010)  but who will take up the cause?

No one will take up the cause since the discrimination has been made legal by a Finance Act (2013?) passed by Parliament. See - Parliamentary sovereignty.

FATCA is being challenged in the UK on data and privacy rights. See the following site:
https://www.crowdjustice.com/case/fatcahmrcprivacybreach/

Thanks for the updates.  I don't see FATCA going away anytime soon.  Stuff like this can change in the UK but the USA is seemingly immovable.

For example, when we moved back to the UK in 2016 and then moved large (for us) sums of money over to buy a house I wanted somewhere safe to keep it for a few weeks/months until we completed the purchase. NS&I were an obvious choice but they didn't accept US Citizens as customers on the grounds, I discovered, that it was not a good expenditure of taxpayer money to become FATCA compliant except to except all US Citizens and US persons. I ended up opening multiple accounts to spread the money around keeping below the £85k insurance limit.

That has now changed and they do accept US Citizens and Persons.

For example, when we moved back to the UK in 2016 and then moved large (for us) sums of money over to buy a house I wanted somewhere safe to keep it for a few weeks/months until we completed the purchase. NS&I were an obvious choice but they didn't accept US Citizens as customers on the grounds, I discovered, that it was not a good expenditure of taxpayer money to become FATCA compliant except to except all US Citizens and US persons. I ended up opening multiple accounts to spread the money around keeping below the £85k insurance limit.

That has now changed and they do accept US Citizens and Persons.

Well now.....that's good to know. We have recently been moving money into different accounts to stay in the £85K limits......we have very recently put the £85K in the Post Office savings. I filled out the online paperwork and put myself as the first person to contact......but they sent the confirmation to my wife (UK) instead of me. Same thing as NS&I?

Well now.....that's good to know. We have recently been moving money into different accounts to stay in the £85K limits......we have very recently put the £85K in the Post Office savings. I filled out the online paperwork and put myself as the first person to contact......but they sent the confirmation to my wife (UK) instead of me. Same thing as NS&I?

No, NS&I are run by the Treasury and the deposit limits are £2m for Direct Saver and £1m for Income Bonds. These are UK government  bonds backed the Treasury so about as safe as you can expect. They also have other types of bond such as guaranteed income bonds, Premium bonds and more.

No, NS&I are run by the Treasury and the deposit limits are £2m for Direct Saver and £1m for Income Bonds. These are UK government  bonds backed the Treasury so about as safe as you can expect. They also have other types of bond such as guaranteed income bonds, Premium bonds and more.

The rates of interest are not the best but they make up for that in terms of security.

The rates of interest are not the best but they make up for that in terms of security.

Exactly, but when I had £300,000 to hold for a few weeks until the house purchase completed I was looking for safe and it was a real pain splitting it all up, opening multiple accounts for a short while.