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L&C solves tax dilemma for US investors

London & Capital has created a discretionary fund management service for advisers with US clients as it believes the impact of US tax gathering should not be underestimated.

The firm says there are around 200,000 registered Americans in the UK, with some being advised by IFAs who mistakenly believed US clients fall under UK tax rules. This has left Americans who invest in funds through UK wrappers such as Isas, offshore bonds and Sipps vulnerable to hefty fines imposed by the US authorities.

London & Capital says the US is ramping up its tax-collecting regime and many UK financial institutions, including some IFAs, are now refusing to deal with Americans.

It says advisers may worry about potential liabilities relating to the investment advice given to US clients. Situations where a British person has married an American and holds investments in joint names for IHT efficiency could also lead to US tax issues.

London & Capital’s service provides different portfolios for US clients based on how long they have lived in the UK, which is necessary to ensure the portfolios are tax-compliant from a UK and US perspective.

Clients who have lived in the UK for up to seven out of the last nine years have three risk-graded exchange-traded fund portfolios to choose from, catering for conservative, balanced and growth risk profiles.

Those living in the UK for more than seven out of the last nine years have two options, a sterling or a dollar-denominated balanced portfolio comprising 55 per cent equities, 35 per cent bonds and 10 per cent commodities.

London & Capital joint managing director and head of US family office Daniel Freedman says: “For IFAs with US clients, this is becoming more topical and it needs to be carefully thought through. We chose the Praemium platform because it was the only platform that can deal with US clients and multi-asset portfolios.”


JPM aims to raise capital for trust with C-share issue

JP Morgan intends to raise further capital for its global emerging markets income trust through an issue of conversion shares. The C-share offer is designed to meet demand from inves-tors seeking income from emerging markets. JP Morgan says that interest in the trust has been strong since its launch last July. Managed by chief investment […]


Legal fears on early warning

Financial services lawyers and Aifa have raised strong concerns over Government proposals to allow the new financial regulator to publicise ongoing enforcement investigations. In a consultation paper published last week, the Government revealed plans to legislate to grant the Financial Conduct Authority, previously the Consumer Protection and Markets Authority, the power to publicise warning notices […]

Leeds Building Society aims to boost mortgage lending

Leeds Building Society is targeting a 25 per cent increase in new mortgage lending this year, as it posts a pre-tax profit of £42.2m for 2010. The society’s profit is up 33 per cent from £31.7m in 2009. New mortgage lending at the Leeds rose 7 per cent from £922m to £984m, with an average […]


MEP wants high pension fees paid back to investors

European Parliament economic and monetary affairs committee chair Sharon Bowles is calling on pension providers that charge “exorbitant fees” to give money back to investors. Bowles, LibDem MEP for the South-east, says provider fees are particularly high in the UK compared with other parts of Europe. She says: “Morally, it would be right to get […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.


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