Help!! I've moved to the US and HSBC wants my details

plarka

I have an account with HSBC and they found out I moved to the US and now are sending me letters wanting a copy of my passport. Some of the letters have said something about them needing to report the information to the IRS, and W9, and my tax identification number, I have no idea what that is. I'm both a US and UK citizen. I don't want to just give them my info, what are they going to do? Will I need to start paying taxes on it or something? I'd like to keep my money there, it's in an ISA and I believe I can keep it in there, just can't add to it.

They're saying they're going to close my account. And I called the number, and of course got India, and he can only keep re-reading to me what my letter says.

Archi_Bald

http://fatca.hsbc.com/

plarka

Thanks for the link. I guess I'll just have to send in my details, it doesn't say anywhere what's going to happen once I do, that's what's so frustrating! If they're going to tell me to close my account, I'd like to know now before posting forms to the UK and just close it!

Thrugelmir

plarka wrote: »

Some of the letters have said something about them needing to report the information to the IRS, and W9, and my tax identification number, I have no idea what that is. I'm both a US and UK citizen. I don't want to just give them my info, what are they going to do?

To a business some customers simply aren't worth the trouble. Particularly if the customer has their own agenda and cannot respond to a simple straightforward request. The bank is highly likely therefore to close the account. Simple as that. They can do this as it will be stated in the account conditions.

Choice is yours.

dunstonh

I'd like to keep my money there, it's in an ISA and I believe I can keep it in there, just can't add to it.

The US does not recognise ISAs as being tax free.

Westie983

ISA's are tax free vehicles for UK tax payers, if you no longer reside in the UK you are no longer entitled to fund a ISA, probably why they are asking for details you can still have the ISA open though

https://www.gov.uk/individual-savings-accounts/if-you-move-abroad-or-die

macman

Correct, it's residency that determines your ISA and tax status, not citizenship. Otherwise we would all obtain citizenship of some offshore haven and pay no income tax.

dunstonh

macman wrote: »

Correct, it's residency that determines your ISA and tax status, not citizenship. Otherwise we would all obtain citizenship of some offshore haven and pay no income tax.

US taxation is based on citizenship as well as residency.

Whilst the UK will not tax a US citizen on an ISA, the US does not recognise the tax free status of the ISA. These are considered a foreign trust by the IRS and you do need to report your income and capital gains in ISAs each year on your US tax return

There potential issues with SIPPs as well (but not most workplace pension schemes)

plarka

dunstonh wrote: »

US taxation is based on citizenship as well as residency.

Whilst the UK will not tax a US citizen on an ISA, the US does not recognise the tax free status of the ISA. These are considered a foreign trust by the IRS and you do need to report your income and capital gains in ISAs each year on your US tax return

There potential issues with SIPPs as well (but not most workplace pension schemes)

It's a stocks and shares ISA, are there capital gains on that? I don't really know what capital gains are! Would it be how much the stocks go up past what I invested?

dunstonh

It's a stocks and shares ISA, are there capital gains on that?

Yes. Every increase in unit price is a capital gain.

Would it be how much the stocks go up past what I invested?

Part of it would be. The other part is income reinvested. That too needs to be declared to the IRS.

plarka

So if you have stocks, every year you need to report on your increase?