# PFIC / UK Pension



## ADV77 (Jul 15, 2021)

Hi
First post. Any replies really appreciated.
I have dual UK/US citizenship and have lived and worked in the UK for 20+ years.
During this time I have built up two UK workplace pensions.
I am now looking to consolidate these into a new UK Personal Pension and invest directly into a suite of unit trusts/OEICs, most of which are UK collectives but some of which are Irish and Luxembourg Unit Trusts.
My questions are:
1) PFICs - The new collective funds will be PFICs but i understand these to be exempt from the US reporting/tax issues within a UK Pension? If correct, this applies to all of the funds, irrespective of whether UK or otherwise?
2) Employer Pensions - my existing pensions were set up and contributed to by my employers. If transferred to a new Personal Pension, will the reporting requirements change now and/or when I commence with taking benefits, compared to the current situation?

Thanks
Alan


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## Jca1 (Aug 7, 2019)

Curious how you got on with this. The answer to question one is that there is no PFIC reporting required if the investments are held in something such as a UK SIPP that's recognised as a pension under the US-UK tax treaty. I don't have a code section to cite offhand, though; this is just going from memory. The answer to the second question is something you'll get different opinions on, with some people telling you need to file forms 3520 and 3520-A (expensive and complex to prepare and the IRS issues massive penalties for real or imagined trivial mistakes) every year if it's not a workplace pension anymore, others telling you the risk of filing 3520/3520-A is worse than the risk of not filing it, and others telling you it's not required.


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