UK ISA US Tax
Investing your money is one of the best ways that you can see growth over time. While it does require discipline and careful investing advice, there are some methods that you can use to invest smarter so that you can pay a little bit less tax on your investment choices. An ISA has long been one of the favourites for US citizens living in the UK.
What is ISA?
An ISA stands for an individual savings account and it is the creation of a number of UK banks. These accounts are designed to help qualify for a favourable tax status. The goal is to have UK residents invest using one of these accounts where they can enjoy less tax on their investments as long as they are available within the ISA.
With other types of savings accounts you will be responsible for paying ongoing interest on the earnings inside the account, interest on any ISAF that will be completely free from tax so that you can hold onto any of the interest that you are earning over time.
How can ISA Save money on Tax for US Citizens?
Starting an ISA can be an excellent way that you can save money on taxes a US citizen. If you are investing while you are living abroad it's possible that you would have to continue paying ongoing taxes as a United States citizen. The biggest problem that you may face however is the chance that you will be constantly having to pay into the interest that is being earned on every investment.
By starting and ISA, you can contribute up to £20,000 every year to the account, tax free. The interest that you earn on any of the assets in the account will also not be subject to tax so you can avoid the extra costs of investing and lower your tax earned in foreign income quite easily.
To get started with an ISA, many of the top financial institutions across the UK do require some initial investment. If you do have some money set aside or even some assets that you could put into an ISA, it can often be worth it as a tax shelter so that you can enjoy getting a break on some of your foreign investment income.
We help assisting US citizens living in UK on owning ISA
If you are interested in getting started with an ISA or even beginning your investment strategy as you are living abroad, contact us today. We are professional tax advisors and we can help US citizens living in the UK to get started with an ISA. Our professional team can provide a wealth of tax advice so that you can work at saving money in taxes that are owed in the USA. We strongly recommend starting an ISA if you are going to be investing abroad.