Whitepapers

Planning for a Property Purchase as a US person in the UK

Historically, property alongside pensions has been one of the most common ways to invest in the UK both for a main residence and a buy-to-let portfolio. As many know, property is an asset class, just as cash, bonds and shares and can serve as a form of diversification when building an overall investment portfolio for assets. In the UK, there have traditionally been many tax incentives for property investing. However, these are slowly being tapered back making other avenues of investing potentially more attractive.

Planning for a Property Purchase as a US person in the UK

As with other financial decisions, Americans often have additional areas of consideration when purchasing a property in the UK. Within this whitepaper, we discuss these areas in greater detail.

Do you own PFIC investments?

Passive Foreign Investment Companies (PFICs) form part of the 1986 IRS tax reforms that closed loopholes being used to protect offshore investments from taxation. The 1986 tax reforms not only sought to close the loophole, but also to bring such offshore investments under US taxation and deter US taxpayers’ interest in such investments through punitive tax rates.