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Topic: OIGs and PFICs – how to plan around them?  (Read 293 times)

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OIGs and PFICs – how to plan around them?
« on: November 16, 2020, 05:18:06 PM »
I have  a few questions about OIGs and PFICS.   First some background.  I am a US citizen.  I am retired after working about 25 years in the UK.  My wife is a UK citizen and also retired.  I file in the US as married/separately with my wife declared as NRA.

My first venture into UK investments landed me with a wheelbarrow full of US PFICS. I am interested in steering clear of this issue as much as possible while not stepping onto the reverse issue of UK OIGS.   I am thinking the only avenue here is dual reporting funds.

At present, I hold a Schwab account in the US.  I see Schwab has a Schwab International branch.  However, it also has an active Schwab.co.uk webpage too.  I would like to be forearmed before I approach either of these branches.  Does anyone have any experience with Schwab International or the services provided by Schwab.co.uk?

On a similar note, can anyone recommend any similar banks/investment firms that offer US expats the opportunity to invest in dual reporting funds.


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Re: OIGs and PFICs – how to plan around them?
« Reply #1 on: November 16, 2020, 07:12:33 PM »
My wife and I are both US citizens living in the UK and do hold dual reporting funds to avoid PFIC problems. However, we set up those accounts and funds in the USA before moving to the UK. We manage those funds easily enough from the UK and benefit from the lower tax rates on dividends and capital gains on those funds in both countries.

However, I don’t know if you can open new US accounts and/or buy new funds while living in the UK.
Dual USC/UKC living in the UK since May 2016


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Re: OIGs and PFICs – how to plan around them?
« Reply #2 on: November 19, 2020, 10:27:43 AM »
No experience with Schwab, but when I inherited neither Fidelity or UBS would take me on with a foreign address.  I solved the problem by using a dual qualified IFA in London who sorted out dual reporting funds with Pershing /  BNY Mellon .    I don't know if I could have done that myself, i have always used an IFA for ease and rigour-- if I don't have someone prodding me, i spend too much.



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