Once you enter on the marriage Green Card, the United States taxes your worldwide income; a qualifying SIPP can retain treaty deferral, but ISAs/GIAs and your UK-company ownership create separate tax and filing duties.
“I'm moving to the US from the UK on a marriage Green Card in about two years. How does the US tax UK investment accounts like SIPPs, ISAs, and GIAs? Also, what are the US tax implications and filing requirements if I remain the sole director of three UK limited companies after I move, and how can I find a reputable cross-border financial advisor?”
Resumen
You have enough lead time to inventory the holdings, model the arrival year and change investments or company arrangements before U.S. residence starts. The difficult part is classification—not that you must automatically close every UK account or company.
Your answer divides by account type and, for each UK company, by how much stock you own after becoming a U.S. tax resident.
If the SIPP meets the treaty definition of a pension scheme, Article 18(1) generally prevents the United States from taxing its internal income until money is paid to you. Report the pension interest on Form 8938 when your assets cross the applicable threshold; treat it as an FBAR account if it is a . Form 8621’s instructions also provide a limited treaty-pension exception “in certain situations,” but it is not automatic. [Sources 4 and 6–9]
Once you are resident, report their interest, dividends and realized gains in U.S. dollars under the worldwide-income rule. Both account values can enter Form 8938 and FBAR calculations; test every non-U.S. pooled fund or ETF for status and prepare a separate Form 8621 for each PFIC. [Sources 1 and 7–9]
Directorship alone is not the Category 2 trigger: that category also involves a U.S. person’s qualifying 10% acquisition. Even without Form 5471 based on your own shares, your company-account signature authority, U.S.-performed work, payroll and possible remain separate issues. [Sources 9, 11, 14 and 15]
Becoming a U.S. person while meeting the 10% ownership test is a Category 3 Form 5471 event. Future annual Form 5471 duties depend on later ownership events and whether U.S. shareholders collectively cross the threshold; company shares also count toward Form 8938 even when their details are reported on Form 5471. [Sources 8 and 11]
Your control generally creates Category 4 reporting and makes the company a , producing Category 5 reporting and possible current section 951A income before a dividend is paid. Prepare one Form 5471 per company and the then-current Form 8992 or successor schedules; Public Law 119-21’s newer “net CFC tested income” terminology controls over the older Form 8992 wording. [Sources 11–13]
These are federal results; state treatment and the UK side of any pre-move sale, distribution or restructuring require a separate location-specific calculation.
Leer la explicación completaOcultar la explicación completa
Watch out for
Próximos pasos
These steps produce the ownership, account and filing map your advisers need before you make an irreversible sale, pension withdrawal or company change.
Now
Build one cross-border asset and company schedule
Record each asset’s legal owner, wrapper, underlying investments, original-currency cost and acquisition date. Publication 551 says basis is usually cost, so preserve contract notes rather than using the immigration-date market value. [Source 17]
Requisitos
Before the U.S. residency year
Run the SIPP, ISA and GIA classification before trading
For the SIPP, document treaty pension status, Rev. Proc. 2020-17 tests, trust ownership and the Form 8621 pension exception. For each ISA/GIA pooled holding, determine PFIC status and compare keeping, selling or changing it before residence—while also calculating the UK consequences rather than assuming a U.S.-only answer. [Sources 4–7]
Requisitos
Before filing the first return
Choose the arrival-year tax treatment
Compare the default with the joint full-year election. The election is made by attaching a statement signed by both spouses to the joint return and causes both spouses to report full-year worldwide income. [Sources 2–3]
Requisitos
Before doing company work from the U.S.
Set company ownership and U.S. working arrangements
Classify each Ltd under 26 CFR 301.7701-3; determine Category 2, 3, 4 and 5 Form 5471 status; establish Social Security/Medicare withholding where required; and assess whether U.S. management or contract authority creates a trade or business or . If Form 1120-F is required, its current instructions set the deadline at the 15th day of the fourth month after year-end with a U.S. office, or the sixth month without one; a treaty-based protective return should include Form 8833. [Sources 10–15]
Requisitos
With the first U.S. income-tax return
Prepare the first federal international-information package
Prepare Form 1040 or the applicable dual-status package; attach Form 8938 if U.S.-resident thresholds are exceeded; prepare one Form 8621 per reportable PFIC and one Form 5471 per applicable company; add Form 8992 or its arrival-year successor for section 951A; and file Form 3520/3520-A only if required after applying Rev. Proc. 2020-17. Form 5471 and Form 8938 follow the income-return deadline; current Form 1040 instructions allow Form 4868 to extend filing for six months but not payment. [Sources 6–8, 11–13, 16 and 21]
Requisitos
For every year over the aggregate threshold
File the separate FBAR
Electronically file FinCEN Form 114 through the BSA E-Filing system when aggregate reportable foreign accounts exceed $10,000 at any time. Include company accounts over which you have signature authority and any SIPP, ISA or GIA that is a ; the exact deadline for your future arrival year is unresolved because that year’s notice has not been issued. [Source 9]
Requisitos
Before paying a retainer
Verify a tax specialist and an investment adviser separately
Search the IRS credential directory at https://irs.treasury.gov/rpo/rpo.jsf for a CPA, enrolled agent or attorney, then require written examples of recent work involving Forms 8621, 8938, 3520, 5471, 8992 and 1120-F. Verify any U.S. investment adviser and Form ADV at https://adviserinfo.sec.gov/; if the person advises on your SIPP or other regulated UK products, verify the exact permission and official contact details at https://register.fca.org.uk/s/. [Sources 18–20]
Requisitos
Fuentes legales
The answer comes from IRS and FinCEN instructions, Treasury’s U.S.–U.K. tax treaty, federal regulations and statute, SEC IAPD, and the FCA Register.
IRS Taxation of U.S. Residents
A U.S. resident reports worldwide income, which brings UK investment income and company payments into the federal return.
U.S. residents are generally taxed in the same way as U.S. citizens. This means that their worldwide income is subject to U.S. tax and must be reported on their U.S. tax return.
IRS Residency Starting and Ending Dates
For an immigrant visa issued abroad, U.S. tax residence normally starts on the first U.S. entry after receiving the Green Card.
If you receive your green card abroad, then the residency starting date is your first day of physical presence in the United States after you receive your green card.
IRC 6013 Resident-Spouse Election
The spousal election creates full-year U.S. residence and worldwide-income reporting for both spouses.
You must file a joint income tax return for the year you make the choice (but you and your spouse can file joint or separate returns in later years). Each spouse must report their entire worldwide income for the year you make the choice and for all later years unless the choice is ended or suspended.
U.S.–U.K. Income Tax Treaty
A qualifying UK pension’s internal income is generally deferred until it is paid to the U.S. resident participant.
Article 18(1)
Where an individual who is a resident of a Contracting State is a member or beneficiary of, or participant in, a pension scheme established in the other Contracting State, income earned by the pension scheme may be taxed as income of that individual only when, and, subject to paragraphs 1 and 2 of Article 17 (Pensions, Social Security, Annuities, Alimony, and Child Support) of this Convention, to the extent that, it is paid to, or for the benefit of, that individual from the pension scheme (and not transferred to another pension scheme).
U.S.–U.K. Income Tax Treaty
The savings clause preserves Article 18(1), but pension-contribution relief under Article 18(2) is not protected for a U.S. permanent resident and Article 17(2) is not listed.
Article 1(4)–(5)
4. Notwithstanding any provision of this Convention except paragraph 5 of this Article, a Contracting State may tax its residents (as determined under Article 4 (Residence)), and by reason of citizenship may tax its citizens, as if this Convention had not come into effect. 5. The provisions of paragraph 4 of this Article shall not affect: a) the benefits conferred by a Contracting State under paragraph 2 of Article 9 (Associated Enterprises), sub-paragraph b) of paragraph 1 and paragraphs 3 and 5 of Article 17 (Pensions, Social Security, Annuities, Alimony, and Child Support), paragraph 1 of Article 18 (Pension Schemes) and Articles 24 (Relief From Double Taxation), 25 (Non-discrimination), and 26 (Mutual Agreement Procedure) of this Convention; and b) the benefits conferred by a Contracting State under paragraph 2 of Article 18 (Pension Schemes) and Articles 19 (Government Service), 20 (Students), and 28 (Diplomatic Agents and Consular Officers) of this Convention, upon individuals who are neither citizens of, nor have been admitted for permanent residence in, that State.
Rev. Proc. 2020-17
Eligible tax-favored foreign retirement trusts receive Form 3520/3520-A relief, but Form 8938 and FBAR obligations remain.
Section 3
Accordingly, pursuant to the authority granted under section 6048(d)(4), the Treasury Department and the IRS are exempting from section 6048 information reporting an eligible individual’s transactions with, or ownership of, an applicable tax-favored foreign trust. This revenue procedure does not affect any reporting obligations under section 6038D or under any other provision of U.S. law, including the requirement to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), imposed by 31 U.S.C. section 5314 and the regulations thereunder.
Instructions for Form 8621
PFIC reporting is fund-by-fund, although certain treaty pension arrangements receive a limited exception.
Who Must File; Part I
A foreign corporation is a PFIC if it meets either the income or asset test described next. A separate Form 8621 must be filed for each PFIC in which stock is held directly or indirectly. In certain situations, a shareholder who is a member or beneficiary of (or participant in) an arrangement treated as a foreign pension fund under a U.S. income tax treaty that owns an interest in a PFIC is not required to complete Part I with respect to the PFIC. See Regulations section 1.1298-1(c)(4).
Instructions for Form 8938
Form 8938 uses separate thresholds and expressly includes interests in foreign pension plans.
Reporting Thresholds; Valuing Foreign Pension Plans
If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year. If you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. If you have an interest in a foreign estate, foreign pension plan, or foreign deferred compensation plan, the maximum value of your interest is the fair market value of your beneficial interest in the assets of the estate, pension plan, or deferred compensation plan as of the last day of the tax year.
FinCEN Form 114 Instructions
FBAR covers foreign accounts over the aggregate threshold, including accounts controlled through signature authority.
Who Must File; Signature Authority
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. Signature authority is the authority of an individual (alone or in conjunction with another individual) to control the disposition of assets held in a foreign financial account by direct communication (whether in writing or otherwise) to the bank or other financial institution that maintains the financial account.
26 CFR 301.7701-3
A foreign eligible entity whose members all have limited liability defaults to corporate classification unless it validly elects otherwise.
(b)(2)(i)(B)
Except as provided in paragraph (b)(3) of this section, unless it elects otherwise, a foreign eligible entity is— An association if all members have limited liability;
Instructions for Form 5471
Ownership on becoming a U.S. person can trigger Form 5471, which is prepared separately for each company and carries per-company penalties.
Categories 3–5; When and Where To File; Penalties
A person who becomes a U.S. person while meeting the 10% stock ownership requirement with respect to the foreign corporation; Complete a separate Form 5471 and all applicable schedules for each applicable foreign corporation. A $10,000 penalty is imposed for each annual accounting period of each foreign corporation for failure to furnish the information required by section 6038(a) within the time prescribed.
Instructions for Form 8992
The fetched December 2024 instructions require section 951A income computation on Form 8992 for affected U.S. shareholders.
Purpose; Who Must File
Under section 951A, U.S. shareholders who own (within the meaning of section 958(a)) stock in a CFC are required to include GILTI in gross income. Form 8992 is used by a U.S. shareholder to calculate the amount of the GILTI inclusion and to report related information.
Public Law 119-21
The later statute renamed the section 951A regime, so it controls over the older form instructions’ terminology.
The heading for section 951A is amended by striking ‘‘GLOBAL INTANGIBLE LOW-TAXED INCOME’’ and inserting ‘‘NET CFC TESTED INCOME’’.
Instructions for Form 1120-F
A foreign company doing business in the United States files Form 1120-F even when invoking treaty protection, with different deadlines based on whether it has a U.S. office.
Who Must File; When To File
Was engaged in a trade or business in the United States, whether or not it had U.S. source income from that trade or business, and whether or not income from such trade or business is exempt from U.S. tax under a tax treaty (see also Protective Return Filers, later); A foreign corporation that maintains an office or place of business in the United States must generally file Form 1120-F by the 15th day of the 4th month after the end of its tax year. A foreign corporation that does not maintain an office or place of business in the United States must generally file Form 1120-F by the 15th day of the 6th month after the end of its tax year.
IRS Persons Employed by a Foreign Employer
Working physically in the United States for a UK company generally creates U.S. Social Security and Medicare withholding issues for that employer.
Individuals employed within the United States by a foreign employer are generally subject to Social Security and Medicare tax withholding by the foreign employer.
U.S.–U.K. Income Tax Treaty
The United Kingdom may tax UK-company directors’ fees, while the treaty provides U.S. foreign-tax-credit relief subject to U.S. limitations.
Articles 15 and 24(1)(a)
Directors’ fees and other similar payments derived by a resident of a Contracting State for services rendered in the other Contracting State in his capacity as a member of the board of directors of a company that is a resident of the other Contracting State may be taxed in that other State. In accordance with the provisions and subject to the limitations of the law of the United States (as it may be amended from time to time without changing the general principle hereof), the United States shall allow to a resident or citizen of the United States as a credit against the United States tax on income the income tax paid or accrued to the United Kingdom by or on behalf of such citizen or resident;
Instructions for Form 3520-A
If no Rev. Proc. exemption applies and the SIPP is a foreign trust with a U.S. owner, Form 3520-A has an early separate deadline.
Who Must File; When To File
A foreign trust with a U.S. owner must file Form 3520-A in order for the U.S. owner to satisfy its annual information reporting requirements under section 6048(b). Form 3520-A is due by the 15th day of the 3rd month after the end of the foreign trust’s tax year.
IRS Publication 551
Keep original acquisition records because investment basis ordinarily begins with cost.
Cost Basis
The basis of property you buy is usually its cost.
IRS Choosing a Tax Professional
The IRS directory verifies tax credentials, though the user must still test cross-border expertise.
Our Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help you find preparers in your area who currently hold professional credentials recognized by the IRS, or who hold an annual filing season program record of completion.
SEC Investment Adviser Public Disclosure
IAPD provides an investment adviser’s registration, business disclosures and disciplinary history.
You can search for an Investment Adviser firm on this website and view the registration or reporting form ("Form ADV") that the adviser filed. Form ADV contains information about an investment adviser and its business operations. Additionally, it contains disclosure about certain disciplinary events involving the adviser and its key personnel.
FCA Financial Services Register
The FCA Register verifies that anyone advising on regulated UK products has the right authorization and permissions.
Using an authorised firm, with the correct permissions, will greatly reduce the risk of harm. Always check that permissions/activities of the firm match the service it's providing to you.
2025 Instructions for Form 1040
The currently published federal-return instructions permit a six-month filing extension but not a payment extension.
When and Where Should You File?
You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. An automatic 6-month extension to file doesn’t extend the time to pay your tax.
These are the official federal, treaty, FinCEN, SEC and FCA rules published on the cited dates; rules and forms can change before your move.
This is general information about official processes, not legal or tax advice, and SettleKit is not a law firm.
Respuestas relacionadas
Suscríbete al boletín de SettleKit
Investigamos las partes difíciles de establecerse en Estados Unidos y escribimos artículos que no vas a encontrar en otro lado. Suscríbete para recibir cada artículo nuevo por correo.