ISA for dual nationals

sophiek77

Hello!

I have recently been looking into opening an ISA with Moneybox (because it's the smart thing to do!) but annoyingly, because I am a dual citizen (UK/USA), it won't let me complete/sign up for one. It is my understanding/interpretation that I am not allowed to open one because they are unable to comply with the IRS/American tax system?

Wondering if anyone has had similar issues and potentially found a solution? I live full-time in the UK and have for 2 years.

Thanks so much for any advice/help!

S

xylophone

https://www.telegraph.co.uk/investing/funds/the-40pc-tax-hit-for-britains-200000-americans/

Rich2808

No issue with dual nationality - as ISAs can be opened up by all legal UK residents whether British nationals or not.

The problem is that one of your citizenships is the US - who tax citizens on all foreign and domestic earnings/income essentially whether you live in the US or not. Due to the regulatory requirements many UK financial providers are reluctant to allow US nationals to open accounts with them.

The only way round this potentially is to renounce your US citizenship - assuming you never want to go and live there (or visit relatives more easily) for the rest of your life. Our PM did just that to cut his tax bills.

https://www.forbes.com/sites/robertwood/2017/02/09/brit-boris-johnson-renounces-america-why-we-should-care/#5ab7a93b5341