Momentum Pensions has launched a self-invested personal pension plan (SIPP) designed for US tax-payers with accumulated savings in UK registered schemes.
The Momentum US SIPP (US SIPP) is aimed at individuals with a minimum of £250,000 invested in a UK pension arrangement and who are within the scope of US tax, ie US citizens resident anywhere outside of the US, or anyone resident in the US whether US citizens or not. Such individuals have complex filing and compliance obligations to the Internal Revenue Service which can result in penalties if not observed.
The proposition has been developed with the assistance of Buzzacott Accountants, the UK's largest single office accountancy business, which also has an expertise for the US marketplace.
"The space for US tax payers with UK pensions has been underserved over the years..." - Stewart Davies, CEO, Momentum
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 the UK, the company said. Users can access the UK's Origo platform to facilitate the transfer from their existing UK pension to the new SIPP.
Stewart Davies, CEO Momentum, said that he believes that the US SIPP is expected 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," he said. "The space for US tax payers 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.
"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 SEC."