US/UK Tax Advice for UK Wealth Managers with American Clients
Watch the video Summary American clients in the UK face a maze of HMRC/IRS rules. HMRC’s March 2024 update to INTM163160 tightened treatment of pension lump sums for US residents. PFIC rules make ISAs, OEICs and VCTs hazardous. This post outlines practical steps for UK wealth managers to reduce tax drag, avoid penalties, and safeguard client outcomes. Who this applies to UK wealth managers, IFAs, and accountants advising US citizens/green card holders in the UK, UK nationals moving to or investing in the US, and family offices coordinating dual filings. Why this matters now HMRC’s compliance yield rose 22.7% to £4.1bn in 2023–24, and offshore enforcement has recovered £3.2bn+ since 2010. FATCA/CRS data sharing means US/UK authorities already see the accounts—mistakes are rarely invisible. Key cross-border friction points Pensions and INTM163160 (Mar 2024): Clarifies how lump-sum pension benefits can be taxed when the recipient is US-resident. PFIC exposure: Most UK fund...