Why our SIPP accepts US citizens & US residents when most UK providers won’t

Whether you’re a US Citizen living in the UK or an expat resident in the US, you’ll have probably noticed that it can be frustratingly difficult to open any kind of financial account with a UK financial institution, this includes a SIPP or personal pension (although MyExpatSIPP will happily accept US citizens and residents).

The main reason behind this is due to the Foreign Account Tax Compliance Act (FATCA) which was introduced in 2010 under US Federal Law. It generally requires all foreign financial Institutions, such as banks and investment managers, and certain other non-financial foreign entities, to report to the IRS on the foreign assets held by U.S. Persons.

➤ Find out why MyExpatSIPP is the ideal solution for US residents & citizens 

A US Person, Citizen or Resident

The definition of a “US person” can be either a US citizen or a resident of the US. Therefore, for example, a US citizen who holds an ISA account with a UK bank, the UK bank would have to report the details of this account to the IRS, as well as the individual having to declare this to the IRS.

The onerous reporting requirements and the added risk of falling foul of the IRS should any mistakes happen, mean that UK financial institutions would rather not subject themselves to the additional workload and cost. They therefore usually implement a total ban on accounts for US Persons.

FATCA for a SIPP and UK Pension schemes

The intergovernmental agreement between the UK and the US which detailed how FATCA would be implemented, granted an exemption for UK registered pension schemes and therefore UK pension providers do not need to report details of the retirement accounts held by US Persons to the IRS.

The US Persons however must still report the details of the SIPP or pension to the IRS via Form 8938.

Although this exemption exists and works, the problem is that many institutions in the UK still don’t want to deal with US Persons or overseas residents as they don’t have the technical know-how or customer support to deal with these clients.

A SIPP for US residents & US citizens

At MyExpatSIPP, our service is designed for expats and non-UK residents, and will gladly open a SIPP account for US citizens and residents. We have the technical know-how for dealing with overseas clients and provide you with an easy to manage online SIPP account, together with expert support from our Account Managers.

We provide you with all the resources, information, guidance and support to enable you to stay in control of your pension and manage it online from anywhere in the world.

➤ UK Pension information for US citizens and residents 

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