C. < 2min read
Something strange is happening.
We’ve never had this many American residents reach out, or their advisers, worried about keeping all their money in the US.
And it’s not just us. Others working with American clients are seeing the same. There’s a real sense of unease.
Some clients just want to move money somewhere else, not for better returns, but simply to spread risk.
If I were to bottle it down to one simple question we’re hearing most: “Should I just open a UK account and move some cash over?”
My advice - not without a plan. That quick decision can lead to tax issues, and sometimes, a mess to clean up later.
If you’ve got American clients and you’ve had similar conversations, then I’ve bottled it down to 3 points that may be helpful to know
1. Opening a UK account could trigger UK tax
If the client isn’t yet living in the UK full-time (i.e. not UK tax resident), moving money into a UK account can accidentally bring it into UK tax scope. Once the money is in the UK, it’s hard to unwind.
2. Keeping money out of the UK could actually be better
As of April 2025, the UK is introduced a new tax regime that gives new arrivals a four-year window where they don’t pay UK tax on foreign income or gains. But that benefit only applies if the money stays offshore (outside the UK). Bring it into the UK too early, and they lose the relief before it even starts.
3. There could be better places to move the money
Instead of defaulting to a UK account:
- Look at other jurisdictions—Channel Islands, Luxembourg, Switzerland may offer better options
- Choose financial institutions that are comfortable working with Americans (many aren’t, due to extra US reporting rules)
- Avoid funds that fall under US PFIC rules (tax-inefficient for Americans) – this is a topic for another day, but worth Googling if your client files US taxes
With the aim being:
- Help the client achieve the diversification they want
- In an account that doesn’t create unnecessary tax problems
If you’re having conversations like this, take a moment to review it holistically from all angles. Key questions to ask:
- Is the client also moving out of America?
- How does the US view the international account?
- How will it be taxed in the local jurisdiction?
- And crucially, what’s the tax relationship (treaty) between those countries?
It might sound complex, but getting this right upfront avoids bigger headaches down the line.
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Investment advice and investment advisory services offered and provided through Blacktower Financial Management US, LLC. This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, tax advice, tax recommendations, investment recommendations or investment research. You should seek advice from a professional before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
