On the UK side, if you are non-resident in the UK, then this should be fairly elementary (I don't know if there's any interaction with student loans, upon emigration). Don't know how it works if you emigrated part way through a tax year? But that should still be fairly simple. It's just the date when you are non resident. And taking money out of an ISA incurs no tax penalty.Thank you Ted for your response. So it seems I should be hiring a tax service here in the UK, which I will definitely do.
From a reporting stand point, this will only create issues with the IRS, not HMRC (UK authorities) also?
My 2023 US taxes are being finalized as we speak (I have an extension on my 2023 taxes). Would you inform my US preparer that they need to do something for these PFICs now, or will this be a 2024 US tax item if I were to liquidate them this year?
Finally, are you able to help me understand in laymans terms what is the worst case scenario here?
Is it tens of thousands of dollars in penalties, or is it potentially having to pay all of my £7k gains to tax?
Ted S knows far more about this than me. But basically you need to kill this thing - ie sell it. Cash you should reinvest through a US broker in the USA - avoiding these horrendous problems. What I don't know is if there is a better or worse way how/when to liquidate it.
Take Ted S's advice over mine, to be clear, if he contradicts.
Statistics: Posted by Valuethinker — Wed Sep 04, 2024 9:16 am