Self-invested personal pensions for American Expats
Updated on February 11, 2026
Published by
Darshana Dhanani, an IRS Enrolled Agent with 9 years of expat tax experience, specializes in US tax preparation, tax planning, and tax advice for US citizens and Green Card holders living and working abroad.
Table of Contents
Self-invested personal pensions (SIPPs) for US expats
A self-invested personal pension (SIPP) is a UK retirement account that gives you more control over how your pension money is invested. For Americans living abroad, though, SIPPs come with extra layers of tax complexity that don’t always fit neatly into the IRS framework.
Let’s unpack how they work, who can use them, and where the tax quirks lie.
What is a SIPP and how does it work for US citizens abroad?
A SIPP is a type of defined contribution pension in the UK, meaning your balance depends on what you put in and how your investments perform. You can choose your provider, decide how often you contribute, and invest in assets such as funds, shares, or even commercial property—as long as it’s within HMRC rules.
When you contribute, the UK government usually adds tax relief. For example, a £100 contribution might only cost £80 out of pocket if your provider claims the 20% basic-rate relief for you. Additionally, higher-rate taxpayers can claim extra through HMRC or their Self Assessment return.
For US expats, the basic structure stays the same. But the tax recognition may differ depending on your treaty position and how you report the account back to the IRS.
Can US citizens open or keep a UK SIPP while living outside the UK?
Yes, you can usually keep a SIPP after moving abroad. Opening a new one while already living in the US, however, can be trickier.
Most mainstream UK SIPP providers do not accept new clients from the US due to FATCA and SEC compliance requirements. A few “international SIPP” providers cater to expats but often charge higher fees.
If you already have a SIPP, you can still manage it remotely, view balances online, rebalance investments, or even take withdrawals later. Just make sure your provider knows you’re non-UK resident and will continue supporting US-based clients before you rely on it long-term.
How much can non-residents contribute and still receive UK tax relief?
If you’re no longer earning in the UK, you can still contribute up to £3,600 gross each year.
- £2,880 from you;
- £720 in UK tax relief
This option usually remains open for up to five tax years after you leave, provided you joined the pension before becoming non-resident and have no relevant UK earnings.
The five-year limit applies only to tax relief, so you can still contribute beyond that period, just without any UK tax top-up unless you have UK-taxable income.
Those with ongoing UK-taxable income can contribute up to the annual allowance of £60,000, or 100% of their UK earnings, whichever is lower.
If you’ve accessed any UK pension flexibly (through drawdown or lump sums), the Money Purchase Annual Allowance is cut to £10,000.
Note: There’s no penalty for contributing while abroad. You just might not receive tax relief beyond those limits once you’re fully non-resident.