Who this is for
- US persons with stocks & shares ISAs
- Clients with UK fund-based investments
Pensions & Investments
ISAs & UK funds (PFIC)
ISAs are not tax-free for US persons. Unit trusts, OEICs, and investment funds inside ISAs are typically PFICs.
Overview
Why this filing matters
ISAs are not tax-free for US persons. Unit trusts, OEICs, and investment funds inside ISAs are typically PFICs.
Note — ISAs reportable as PFICs.
What you get
- Per-holding PFIC analysis
- Election strategy (MTM vs. QEF)
- Annual 8621 filings
Our approach
Built for the cross-border edge cases.
Most US-UK filings fail the same way: a treaty position that wasn’t disclosed, a foreign account that slipped under FBAR thresholds, a PFIC election filed in the wrong year, a carry-forward not tracked from one preparer to the next. The cost of any single one of those is rarely catastrophic on its own — it’s the compounding over multiple filing seasons that quietly turns a clean tax life into a six-figure remediation project.
We start every engagement by looking at the edge cases first — the elections, the disclosures, the carry-forwards, the side-effects on next year’s return — and only then turn to the routine line items. The result is a filing that reads cleanly to anyone who picks it up next: another preparer, the IRS, or a successor in your own business.
- Position memo on every meaningful election, with the reasoning written down for the next return
- Carry-forwards (FTC, capital losses, PFIC basis) tracked year-on-year so nothing expires unused
- Plain-English commentary on every position taken — the kind that makes a future audit a non-event
Our process
How we handle your isas & uk funds (pfic)
Four steps from first call to filed return. Fixed fee confirmed before any work begins.
- 01
Intake
30-minute scoping call. We confirm your situation, required filings, and send a tailored document list.
- 02
Review
We analyse your position, flag any cross-border risks, and confirm the scope and fee before any work starts.
- 03
Prepare
Draft returns and schedules are prepared with plain-English commentary on key positions for your review.
- 04
File
E-file with the IRS / FinCEN, send confirmations, and handle any follow-up notices or questions.
Pricing
Fixed fees — no surprises
ISA/PFIC strategy review: £350 + VAT. Annual PFIC reporting (Form 8621) is £150 + VAT per holding, with volume discounts for multiple funds.
FAQs
Common questions about ISAs & UK funds (PFIC)
Can I keep my ISA as a US person?
You can, but the UK tax-free wrapper is not recognised in the US. Growth and gains become US-taxable, and the underlying funds are typically PFICs — meaning punitive default taxation unless you elect MTM or QEF treatment.
Cash ISA or stocks-and-shares ISA — does it matter?
Yes. Cash ISAs don't have PFIC issues — interest is simply US-taxable. Stocks-and-shares ISAs typically hold UK mutual funds or OEICs that are PFICs. Lifetime and Help-to-Buy ISAs depend on the underlying investment.
Should I close my ISA before becoming a US tax resident?
Often yes — particularly for small balances where PFIC filing costs exceed the UK tax-free wrapper benefit. We model the break-even before recommending either direction.
Does the ISA go on my FBAR?
The underlying brokerage accounts usually do. The $10k threshold is aggregate across all your foreign financial accounts, not per account — so even small ISAs often push you over once combined with a UK current account.
Ready to get this filed?
Tell us your situation and we'll confirm scope, a fixed fee, and the documents we need — usually within one business day.