To open a Mutual Funds account with Plum, you need to meet all of the following criteria:
Be 18 years or older
Be a UK tax resident
Reside in the main UK territory (England, Wales, Scotland, or Northern Ireland)
Have a Pro, Ultra, or Premium subscription with Plum
Investing for American Citizens
Unfortunately, American citizens, even those with dual citizenship, cannot use the Mutual Funds feature in the app. This decision is based on several factors:
Tax Reporting Requirements: US citizens living abroad face complex tax reporting requirements, which may apply even when no taxes are owed. Compliance can be challenging and time-consuming.
Investment Rules: Strict rules dictate the types of investments that US citizens can hold. Some popular UK investments can be heavily taxed by US authorities. Americans living abroad should seek investment advice from experts familiar with relevant tax issues.
FATCA Legislation: In July 2014, the Foreign Account Tax Compliance Act (FATCA) placed significant reporting obligations on non-US banks and financial institutions regarding their US-linked customers. To avoid these obligations, many companies stopped accepting American clients and requested existing ones to relocate their accounts.