Hello,
I am emigrating to the United States (11 months a year at a time) soon and wondering if I can still receive my dividends which come from US stocks through my T212 app? I want to keep the current amount of shares I have as the dividend income is very helpful.
Many thanks
Hi.
Unfortunately if youy are a US resident, you would have to close your Trading 212 account. It sounds excessive, but the The Foreign Account Tax Compliance Act (FATCA) means that if we deal with US Persons, we have to submit reams of data to the IRS, which is a fate to be avoided, not least as they like to accept documents by fax. FATCA is a pet hate of mine - it’s about the US applying extra-territoriality claims, which are not reciprocated. Unfortunately, the UK government was bullied into signing up to the Automatic Exchange of Information, so we have to comply.
Thanks Nick,
Does that means I could move to Robinhood UK once it opens? Additionally, I will also be a U.K. resident until I gain full residency there. (my spouse is an American citizen which is how I am able to be there) however I’ll be keeping my UK residence for some time. So I guess it’ll be fine to keep going into my UK bank account, I mean, why can’t I hold a UK and US bank account(s) at the same time?
I can’t say for certain, but if Robinhood UK ever opens, I would think they will have the same restriction. I don’t of any UK brokers who will accept a US person as a client.
The definition of US Person is wider than a resident - partly because all US citizens are obliged to file with the IRS whether resident or not. I’m afraid that if there are US indica, we would have to close your account. If you can get an account with a US broker, that would be simpler.
Okay thank you Nick!