Who this is for
- US persons holding UK ISAs
- US persons invested in UK unit trusts or OEICs
Foreign Asset Reporting
PFIC / ISA reporting (Form 8621)
UK ISAs, unit trusts, and OEICs are typically PFICs for US tax purposes — triggering punitive taxation unless elected properly.
Overview
Why this filing matters
UK ISAs, unit trusts, and OEICs are typically PFICs for US tax purposes — triggering punitive taxation unless elected properly.
Note — UK ISAs, unit trusts, OEICs — PFIC rules apply.
What you get
- PFIC identification & categorisation
- Mark-to-market or QEF election analysis
- Form 8621 preparation per holding
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 pfic / isa reporting (form 8621)
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
PFIC analysis and Form 8621 preparation: £150 + VAT per holding, with volume discounts for multiple funds. Initial PFIC cleanup or QEF-vs-MTM election strategy starts from £400 + VAT.
FAQs
Common questions about PFIC / ISA reporting (Form 8621)
Why are UK ISAs a problem for US persons?
Funds inside UK ISAs are typically PFICs. Default PFIC taxation is punitive — ordinary-income rates on excess distributions plus compounding interest charges on all gains, regardless of your actual holding period.
What's the MTM election and should I make it?
Mark-to-market lets you tax gains annually at ordinary rates — usually materially better than default PFIC rules. Requires publicly traded shares; most listed UK funds qualify. Must be elected on the first year of ownership or via a 'purging' election.
Should I just sell my ISA before filing?
Sometimes — particularly if balances are small and the paperwork outweighs the UK tax-free wrapper benefit. We model the break-even against PFIC reporting costs before recommending.
Are UK-domiciled ETFs PFICs too?
Almost always. US-domiciled ETFs are not PFICs (but may be inaccessible from the UK under PRIIPS rules). A common workaround for UK-resident Americans is to use US-domiciled ETFs in general investment accounts — if they can access them.
How many 8621s do I file?
One per PFIC holding per year. A five-fund ISA means five 8621s annually — each running to 4–6 pages. Volume quickly adds up, which is why cleanup conversations are common.
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.