Vanguard Conversion/Upgrade

I've lately been receiving emails from Vanguard saying that I need to convert my mutual fund accounts to their brokerage account. I would happily do this but there's no way to include a UK address for my employer and when calling Vanguard informed me that as a "foreign investor" I have no way to make this change--unfortunate as I'm interested in ETFs as I'm just learning more about UK tax implications on US investments.

Am I really limited to my current accounts with Vanguard or has anyone received more helpful information on how to upgrade?

I've lately been receiving emails from Vanguard saying that I need to convert my mutual fund accounts to their brokerage account. I would happily do this but there's no way to include a UK address for my employer and when calling Vanguard informed me that as a "foreign investor" I have no way to make this change--unfortunate as I'm interested in ETFs as I'm just learning more about UK tax implications on US investments.

Am I really limited to my current accounts with Vanguard or has anyone received more helpful information on how to upgrade?

“Forewarned is forearmed”. Fortunately I learned of this before moving back to England and converted our mutual funds to ETF’s before we left. I had already converted to their new brokerage account a couple of years earlier.

Sorry to hear that you are in this situation.  Can you not convert your mutual funds into ETF’s  within Vanguard’s current structure if they won’t allow you to open a brokerage account with them?

I don't think so. I'm pretty sure I'm limited to mutual funds. I can't really say I fully understand the UK tax implications for US investments but my understanding is that if money stays in the US (and it is) then I don't report it to HMRC. It's confusing as all hell.

I don't think so. I'm pretty sure I'm limited to mutual funds. I can't really say I fully understand the UK tax implications for US investments but my understanding is that if money stays in the US (and it is) then I don't report it to HMRC. It's confusing as all hell.

If those mutual funds are within an IRA and you are not taking IRA distributions then they do not need reporting to HMRC. If they are “after tax” funds that distribute dividends and capital gains then they are taxable in the UK as well as the US. This happens to me every year and I pay UK taxes which I then claim back as foreign tax credits when I file my US taxes.

I think HMRC will tax all dividends and capital gains from Mutual funds as regular income so you won’t get the advantageous lower tax rates of capital gains and “qualified dividends”.

That's useful to know. Sounds like I need to call HMRC to get more info as not all funds are in IRAs.  I've been meaning to find a professional to advise on US-UK tax law but just haven't had the time and don't even know where to begin looking for someone who is knowledgeable and worth the cost to consult.