# Tax on Uk Index linked certificates in USA



## Kph100 (Jul 23, 2018)

If filing a USA tax return whilst living in USA would I have to pay tax on a holding of UK Index linked certificates ?

These certificates are issued by National Savings & Investments by the UK government and are tax free and increase in value according to Inflation.

Thank you


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## underation (Oct 25, 2018)

Kph100 said:


> If filing a USA tax return whilst living in USA would I have to pay tax on a holding of UK Index linked certificates ?
> 
> These certificates are issued by National Savings & Investments by the UK government and are tax free and increase in value according to Inflation.


Free of _UK_ tax, for _UK residents_.

Might be a good idea to check the terms and conditions to see how your change of tax residency affects this?


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## Bevdeforges (Nov 16, 2007)

Technically speaking, the US doesn't recognize any foreign investment program as "tax free." Normally, you would just declare the increase in value for the year as "interest income" - which eliminates any hassles when and if you cash them out (since the tax is already paid on them). But, depending on how much is involved, that may or may not be worth the effort.


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