If you’re packing up a UK life and heading to the United States, you’ll quickly wonder how your favourite financial products survive the move. Do you keep your ISA? Can you roll over a pension? What happens to a mortgage when you become an expat? The short answer is: most products stay, but the rules around them shift dramatically. Below we break down the biggest UK‑to‑US conversions you’re likely to face and give you actionable steps to keep your money on track.
An ISA (Individual Savings Account) is a tax‑free wrapper for cash, stocks, and shares in the UK. Once you become a US tax resident, the IRS does not recognise the ISA as tax‑free. That means any interest, dividends, or capital gains earned inside the ISA could be taxed in the US. The practical move? Keep the ISA open only if you plan to return to the UK soon, and consider moving new contributions into a US Roth IRA or a regular brokerage account that offers similar tax benefits. If you already have a sizeable ISA, you don’t need to close it immediately—just report the earnings on your US tax return.
UK pensions (including SIPPs) are generally portable, but the tax treatment changes. When you become a US resident, your UK pension is treated as a foreign retirement account. Distributions are subject to US tax, and you may also face UK tax unless a treaty relief applies. Many expats elect to transfer part of their pension into a US 401(k) or a Roth IRA via a “Qualifying Recognised Overseas Pension Scheme” (QROPS) if the scheme meets strict criteria. The transfer process can be complex, so a specialist tax adviser is worth the fee.
For those still working in the UK while living in the US, the simplest approach is to keep contributing to the UK pension and claim the foreign earned income exclusion on your US tax return, which can reduce double‑tax exposure.
Mortgage debt doesn’t magically disappear when you cross the Atlantic, but you’ll face new eligibility rules if you want to refinance in the US. UK banks rarely refinance for US residents, so most people either keep paying the UK mortgage or sell the property before moving. If you retain the UK loan, remember that the UK credit file stays separate from your US credit score, meaning your US credit rating starts from scratch.
When applying for a US loan—be it a car loan, personal loan, or a new mortgage—lenders look at your US credit history, income, and debt‑to‑income ratio. A solid US credit score (typically 700+) helps you secure lower interest rates. To build it fast, open a secured credit card, pay it off in full each month, and keep utilization below 30%.
Each of these steps helps you avoid nasty surprises at tax time and keeps your financial goals on track. Moving countries is stressful enough; don’t let hidden tax rules or credit gaps add to the burden.
UK financial products don’t vanish when you move to the US, but they lose many of their tax advantages. By understanding how ISAs, pensions, mortgages and credit work across the pond, you can choose whether to keep, transfer, or replace each product. A little planning now saves you from costly tax bills and credit setbacks later. Got a specific product you’re unsure about? Drop a comment and we’ll walk through the details together.
Many people wonder about the U.S. equivalent to the U.K.'s popular ISA accounts, which provide tax-free savings. In the U.S., there are several alternatives designed to offer tax advantages. These include Roth IRAs, 401(k)s, and traditional IRAs, each with its own set of rules and benefits. Understanding these options can help U.S. savers make the most of their investments. This guide breaks down the differences and highlights the key features to consider.
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