Momentum Pensions has expanded its suite of international retirement solutions by adding a self-invested personal pension (Sipp) plan designed for US taxpayers with accumulated savings in UK-registered schemes.
The Momentum US Sipp is aimed at individuals who are within the scope of US tax with a minimum of £250,000 ($325,839, €290,374) invested in a UK pension arrangement.
That could include US citizens residents anywhere in the world outside of America, or anyone resident in the United States whether a citizen of the country or not.
These individuals face complex filing and compliance obligations to the Internal Revenue Service IRS), which can result in penalties if not observed.
The US Sipp is administered by Momentum in the UK and is only available through regulated advisers in the United States and Europe, including FCA-regulated advisers in Britain.
The proposition was developed with the assistance of Buzzacott Accountants.
Cost and risk barriers
Stewart Davies, chief executive of Momentum Pensions, expects the US Sipp to relieve a “pent-up demand”, globally.
“The US tax system is complex and, being based on citizenship rather than residence, is far-reaching as well. The space for US taxpayers with UK pensions has been underserved over the years and this is principally because of the cost and risks associated with tax and reporting compliance.”
He added: “We are expecting a high level of interest given the market opportunity from advisers, globally, and those based in the US and regulated by the Securities Exchange Commission.”
