Transfer My Interactive Investor SIPP and ISA As A US Resident
What British Expats Need to Know Before the January Deadline
For many British expats living in the United States, recent communications from Interactive Investor have created both urgency and uncertainty. US-resident clients have been told that, due to US regulatory and reporting requirements, they must transfer their assets away — including ISAs, SIPPs and UK investment accounts — by a January deadline.
If you are in this position, the key question is not simply how to transfer, but how to do so without creating unnecessary US tax exposure or losing long-term UK tax advantages.
At The Wealth Genesis, we specialise in exactly these cross-border scenarios.
Why Interactive Investor Is Asking US Residents to Transfer Out
UK platforms such as Interactive Investor operate under UK regulation and are increasingly unable or unwilling to service US-resident clients due to:
US securities regulation and reporting obligations
FATCA and US withholding rules
Ongoing compliance and liability risks for non-US firms
As a result, many US-resident British expats are being asked to move their ISA, SIPP and taxable investments elsewhere, often with little guidance on what “elsewhere” should look like.
This creates risk — particularly if assets are transferred or sold without US-specific tax planning.
The Hidden Risk: PFIC Exposure for US Residents
One of the most common (and costly) mistakes we see is US-resident clients transferring UK investments without understanding PFIC rules.
What are PFICs?
Most UK-domiciled collective investments — including:
UK OEICs
Unit trusts
UK ETFs
Fund holdings inside ISAs and pensions
are classified by the IRS as Passive Foreign Investment Companies (PFICs).
PFICs trigger:
Punitive US tax treatment
Complex Form 8621 reporting
Potential look-back interest charges
Years remaining open to IRS enquiry if filings were missed
Simply moving an ISA or investment account to a different provider does not remove PFIC exposure if the underlying holdings remain non-US-compliant.
What About ISAs While Living in the US?
For US tax purposes:
ISAs are not tax-advantaged
Income and gains remain fully taxable in the US
PFIC rules still apply to ISA holdings
However, this does not mean ISAs are worthless.
Why retaining ISAs still matters
For clients who expect to return to the UK, retaining ISA wrappers can be extremely valuable:
On return to the UK, ISAs immediately regain full UK tax-free status
No capital gains tax
No UK income tax
The key is ensuring the investments held inside the ISA while US-resident are US-compliant, so you avoid US tax penalties during your time abroad.
SIPPs and UK Pensions: Similar Issues, Different Rules
SIPPs generally benefit from more favourable US treaty treatment than ISAs, but problems still arise when:
Platforms will no longer service US residents
Transfers are rushed without understanding the costs involved
A UK pension transfer for expats must be structured carefully to:
Maintain treaty protection
Avoid unnecessary high ongoing charges
Preserve long-term retirement planning flexibility
We Provide Access to US-Compliant Investment Solutions
At The Wealth Genesis, we work with US-compliant platforms and investments specifically designed for British expats living in the US.
This allows clients to:
Transfer Interactive Investor ISAs and SIPPs
Replace PFIC-exposed holdings with US-domiciled investments
Remain compliant during their US residency
Retain ISA and pension wrappers for future UK return
Importantly, this is not about short-term fixes — it is about building a structure that works across both tax systems.
Practical Example: British Expats in New York
Scenario
A British couple living in New York:
Both US tax residents
Holding:
Two ISAs
Two SIPPs
A UK taxable investment account
Planning to return to the UK in around five years
They are notified by Interactive Investor that their accounts must be transferred by January.
The risk
ISA and investment account holdings are largely UK funds (PFICs)
Selling without planning would trigger US tax exposure
Closing ISAs entirely would permanently lose future UK tax advantages
Our approach
Review all existing holdings for PFIC exposure
Transfer ISA and SIPP wrappers to a suitable US-compliant structure
Rebuild portfolios using US-domiciled investments
Maintain full US compliance while preserving UK planning flexibility
The outcome
No punitive PFIC taxation during US residency
ISA wrappers preserved for UK return
Clear, coordinated UK-US strategy with one adviser
Acting in a Fiduciary Capacity
The Wealth Genesis operates as a fiduciary adviser, meaning:
We act solely in our clients’ best interests
Advice is strategy-led, not product-led
Cross-border tax implications are considered at every step
We specialise in British expats with:
UK pensions
ISAs
Complex international residency histories
This is not general financial advice — it is specialist cross-border planning.
Our Fees
Transparency is essential.
Our typical fee structure is:
£3,000 one-off initial advice and structuring fee
0.85% per annum ongoing advice fee
Product costs (dependent on platform and investment selection)
All fees are explained in advance, with no hidden charges.
Next Steps If You’ve Been Asked to Transfer Your Interactive Investor Accounts
If you are a US resident and have been told to transfer your Interactive Investor ISA, SIPP or investment account:
Do not rush a transfer without advice
Do not assume another UK platform solves the problem
Review PFIC exposure before selling or moving assets
Ensure your strategy works for both the US and the UK
This is precisely where specialist advice adds value.
Speak to a Cross-Border Specialist
If you would like to discuss transferring your Interactive Investor SIPP or ISA as a US resident, or structuring your UK investments correctly while living in the US, The Wealth Genesis can help.
