US  

Momentum launches Sipp for US clients

Momentum launches Sipp for US clients

Pensions provider Momentum Pensions has launched a self-invested personal pension plan for US taxpayers with savings in UK registered schemes.

The Momentum 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 the US tax regime.  

This includes US citizens resident anywhere outside of the US, or anyone resident in the US whether a US citizen or not.

These individuals often have complex filing and compliance obligations to the US internal revenue service which can result in high penalties, the firm stated.

Generally speaking such expats are expected to declare their income in the US but they can offset their foreign taxes paid as a credit against their US tax obligation so they don't have to pay twice.

Stewart Davies, Momentum’s CEO, said the US Sipp is expected to relieve a pent-up demand globally.

He said: "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. 

"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."

The Sipp has been developed with the help of Buzzacott accountants who have expertise in US tax matters.

It 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.  

Users can access the Origo platform to facilitate the transfer from their existing UK pension to the new Sipp.

amy.austin@ft.com