Vanguard Stock ISA

I was browsing internet for good Stock ISAa with reasonable fees and ability to purchase US stocks/ETFs. I noticed that Vanguard offers Stock ISA, but it says that it’s not available for “US Persons”. Does anyone know what they mean by US Person? Is it USC or person domiciled in the US?

Also was wondering if anyone can suggest good Stock ISAs

Thank you!

I was browsing internet for good Stock ISAa with reasonable fees and ability to purchase US stocks/ETFs. I noticed that Vanguard offers Stock ISA, but it says that it’s not available for “US Persons”. Does anyone know what they mean by US Person? Is it USC or person domiciled in the US?

Also was wondering if anyone can suggest good Stock ISAs

Thank you!

A US person is basically anyone subject to US taxes. So if you are a USC living in the UK, you are a US person.

If you are a US person, the US will tax a Stocks and Shares ISA.

A US person is basically anyone subject to US taxes. So if you are a USC living in the UK, you are a US person.

If you are a US person, the US will tax a Stocks and Shares ISA.

+1, all ISAs are taxed.

Worse than that, if the ISA contains fund(s) rather than individual stocks and bonds the IRS will consider it a PFIC and tax it harshly.

Thank you for your response. The alternative is to have investments in a US brokerage account; however, it would be subject to higher UK tax and fairly low exemption limits. My thought was to have individual stock and US ETFs that are registered with UK in a UK Stocks ISA.

I have a Vanguard brokerage account in the US so I thought it’d be great to have Vanguard ISA in the UK, but I guess they don’t want US persons to have it.

Do you know of any similar ISAs in the UK that charge reasonable fees and allow a purchase of US stocks and ETFs?

Thank you for your response. The alternative is to have investments in a US brokerage account; however, it would be subject to higher UK tax and fairly low exemption limits. My thought was to have individual stock and US ETFs that are registered with UK in a UK Stocks ISA.

I have a Vanguard brokerage account in the US so I thought it’d be great to have Vanguard ISA in the UK, but I guess they don’t want US persons to have it.

Do you know of any similar ISAs in the UK that charge reasonable fees and allow a purchase of US stocks and ETFs?

If you invest in HMRC reporting funds in the USA they receive quite good tax treatment depending on your tax band. For my wife and I we have all our equity  funds in my wife’s name as she has no income other than interest.  Once above the personal allowance of £11,850 it is taxed at 7.5%. Capital gains from the sale of fund shares has an additional tax free allowance of £11,500 then taxed at 10%.

The rates above are for basic rate tax payers (income below £46,350)

Each ISA provider has its own rules. The Vanguard ISA requires an applicant to confirm that he or she is not a US citizen. But, for instance, the Alliance Trust ISA uses a different prohibition: US persons. Its definition then refers to a SEC rule. That does not cover US citizens who are not US resident.
The tax rules of course remain the same.

Back here again - I'm planning to move to the UK fairly soon, so picking up where I left off with ISAs.

Can someone recommend a good UK ISA that allows US citizens to invest?

I'm looking to buy US ETFs (i.e. Vanguard) that wouldn't trigger PFIC rules and would be relatively cheap to buy (i.e. low trading commissions).

Btw, I've noticed that Vanguard has US ETF products that are registered (example, ETF with symbol "VT") while it also has UK ETF products (i.e. the ones that have ISINs) - would a UK ETF product from Vanguard be subject to PFIC rules?