Can an American citizen invest in UK stock?

Question

I realize that the usual answer is no, but I'm wondering if there is a loophole that may allow American citizens who are permanently living in the UK. In principle, I am here on a five-year work permit (as of 2006), because this is all they will allow, but I am here on a permanent basis as a tenured university professor and so this will be continually renewed. I have already bought and sold a house in the UK, so this is a form of investment; many banks ininitially turned down my mortgage requests citing a informal "3 year rule" that one must live in the UK for that period of time to successfully apply for a mortgage. However, eventually I found a major bank willing to supply the mortgage given my employment here and the fact that I now call the UK home. I'm wondering if there may similarly be caveats when it comes to diversifying my funds in UK.

Answer 1

You can easily invest in UK stock - being a UK citizen, I regularly invest in US stock. The difference is that you may not be eligible to pay uk taxes and instead have to pay US taxes. Stockbroking houses are happy to help you invest in stock, best to talk to them.

Answer 2

Definitely. There is a big difference between borrowing money from a country and investing in it. If you are borrowing, the banks are worried you will take there money and not pay it back (while you move out of the country). If you invest money, no one is worried that you might move to one place or another.

Buying shares in a UK based mutual fund will give you more diversification and more consistent returns than buying just one or two stocks. You could also buy a fund that invests in the best stocks in all of Europe. It is difficult for one person to have knowledge of all the companies of many different countries, but there are companies (mutual funds) that are knowledgeable of the many options available.

Answer 3

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/c8109

Answer 4

You have been mis-informed, You can certainly invest in the UK stock market. Any broker will do this for you. If you do not have a broker on tap just ask the manager at your bank.
The financial newspapers are full of ads trying to attract UK residents to invest in US companies and others throughout the world's markets.

Answer 5

My suggestion is "no", do no longer purchase now. As an investment representative informed me purely 2 days in the past, the financial equipment remains going to "try the backside" various situations in the previous issues turn around, and so, besides the indisputable fact that common expertise will inform you to purchase while the shares are down, even with some stable days, we nevertheless have not seen the backside yet, so carry out for a whilst. The worst has yet to return. God Bless you.

Answer 6

No reason why you can't. I'm UK born and have US shares (from working in an American company based in London). My US partner is expecting to invest over here (and he's on similar siting as you). You might have fun filling out your tax form though.

Answer 7

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Answer 8

There are ADRs that are equivalent to that but are sold on American stock exchanges. When you own those you will pay UK taxes on any dividends so they are truly British stocks with that veneer of US ownership.

Answer 9

I still think the answer is no.