Avoiding the US UK PFIC Reporting Fund Trap Webinar

Please enjoy the following webinar presented by David Kuenzi on the implications of the US/UK PFIC Reporting Fund Trap for American Expatriate Investors. This is a recording of a live presentation made to American Expat Investors on June 24, 2014. More information is available in the articles, Americans in the UK Need to Avoid this Catch-22 Investment Trap and Why Americans Should Never, Ever Own Shares in a Non-US Incorporated Mutual Fund
The U.S. Passive Foreign Investment Company (PFIC) tax regime raises high hurdles for Americans in the United Kingdom to invest wisely and tax efficiently. This is because the United Kingdom has a parallel system of punitive taxation of non-UK funds. U.S. residents of the UK have a difficult investment conundrum as a result of the U.S. PFIC rules and the UK “reporting fund” rules
This investment “Catch-22″ can be successfully navigated by investing in efficient U.S. exchange traded funds that are also so-called UK “reporting funds.” Most importantly, the new U.S. FATCA legislation makes this once easily ignored tax issue critical for all American investors living in the United Kingdom. Failure to manage the issue will result in punitive U.S. and/or UK tax treatment of investment income and potentially very high reporting costs. The best solution is to build efficient, properly diversified portfolio of U.S. ETFs that have “reporting fund” status.
Feel free to contact Thun Financial with any questions related to PFICs and UK Reporting Funds or other financial issues facing Americans living abroad.

PFIC Reporting Fund Trap for Americans Living in UK

  • PFIC Definition and PFIC Taxation
  • Immense Time Requirements for PFIC Compliance
  • UK “Reporting Fund and Off-Shore” Rules
  • Penalty for Having to Comply with Both Tax Systems
  • Solutions for Americans living abroad in UK
  • Why Americans in the UK Cannot Ignore This Issue


Please see the Americans Living Abroad page for more information about the investment management and financial planning services that Thun provides for American expatriates.