Interactive Investor Closing Accounts for US Residents: How to Transfer Out (SIPP/ISA/GIA) and What to Do Next

If you’ve received notice that Interactive Investor is closing (or restricting) accounts for US residents, you’re now on a timeline, whether you like it or not.

The biggest risk is not the transfer itself. It’s rushing into the wrong destination, liquidating assets unnecessarily, or wasting weeks starting a transfer that can’t be completed because the receiving provider won’t accept you.

This blog is the practical version: what’s happening, what it affects (SIPP/ISA/GIA), and how to run an Interactive Investor transfer out properly, including the PFIC issue that catches a lot of US-connected investors out.

Key takeaways

• If ii has told you services will be restricted/closed due to US residency, you should treat it as time-sensitive.
  
• The right answer is rarely “just pick another UK platform”. Many providers have residency eligibility limits, and UK accounts like ISAs and SIPPs are typically positioned for UK residency.
  
• Your transfer route depends on (1) what wrapper you hold (SIPP/ISA/GIA), (2) what assets you hold, and (3) whether an in-specie transfer is possible.
  
• Avoid liquidating investments “just to get it done” unless it’s genuinely required.

What’s happening (and why it matters)

We have recently published a specific blog confirming that Interactive Investor has told US residents to transfer out their SIPP, ISA and GIA accounts by an individual cut-off date in January 2026, after which services may be restricted and further action may follow if clients do not transfer.

Separately, ii’s own account support materials make it clear that account availability and servicing are tied to residency and address status (including UK address requirements and UK-resident availability for ISA and SIPP).

That combination creates the same outcome for clients: you need a workable exit plan, and you need it early.

Which accounts are affected (SIPP vs ISA vs GIA)

You need to separate the problem by wrapper:

SIPP (Self-Invested Personal Pension)

A SIPP is a pension wrapper, so the transfer mechanics and receiving options are different from an ISA or trading account. ii’s own materials show the SIPP sits within a set of account eligibility and servicing rules tied to residency.

ISA (Individual Savings Account)

An ISA is a UK tax wrapper. Even when you can hold one, US tax treatment is not the same as UK tax treatment (and this is where many people get caught out).

GIA / Trading Account

This is often the account people try to “solve fast”, and it’s where forced selling becomes most tempting. Speed is not the same as a good outcome. It also, unlike the ISA, which does have UK tax shielding, both US AND UK tax considerations to manage.

The part most people miss: PFICs (and why forced transfers make this worse)

If you are a US tax resident, and your ii ISA or Trading Account holds non-US Domiciled pooled investments (for example most UK/EU mutual funds, OEICs, unit trusts and ETFs), those holdings can be treated as PFICs (Passive Foreign Investment Companies) for US tax purposes.

Why that matters:

• PFIC reporting often involves IRS Form 8621, potentially for each PFIC holding and for each tax year where reporting triggers apply.
  
• PFICs are a problem because they typically come with high ongoing US tax reporting requirements and can also lead to unfavourable tax outcomes compared to what most UK investors expect, even when nothing has been “mismanaged”. The real danger is that forced platform exits push people into selling or switching quickly, which can create additional reporting events and complexity at the worst possible time.
• This is exactly why forced platform exits are dangerous: clients rush, liquidate, and only later realise the US reporting consequences.
  

Important: Cameron James is not authorised to provide tax advice. But we are very used to spotting when PFIC risk is likely present, and coordinating with a qualified US tax adviser so clients don’t walk into an avoidable mess. 

Interactive Investor transfer out options (what’s realistic)

There are three practical routes. The right route depends on time, eligibility, and assets.

Option 1 — Transfer to another platform (eligibility first)

This is the most common assumption: “I’ll just move it to another UK platform.”

In practice, you must confirm the receiving provider will accept you as a US resident / US-connected person before you start. Many platforms restrict accounts based on residency and servicing requirements, and ii’s own account support pages show how central residency/UK address eligibility is to account administration and access to wrappers.

When this route works

• The receiving provider explicitly supports your residency status for the wrapper in question
  
• Your assets can transfer cleanly (ideally in-specie)
• The new platform has investments that are not subject to PFIC rules, such as US Domiciled ETF’s
  

When it fails

• You start a transfer, then discover the receiving provider won’t onboard US-connected clients
  
• You are forced into a “cash-only” transfer, triggering unwanted sales
• The platform does not allow US Domiciled ETF’s
  

Option 2 — Restructure to a stable long-term solution (where appropriate)

For some US-resident clients, the right solution is not another UK platform. It’s a deliberate restructure into a setup that can actually be serviced while you are US resident and remains workable if you move again.

This is where US-connected planning matters, because wrappers and investment selection can create reporting complexity and tax traps. We highlighted why this matters for US residents (including the wider planning and tax-reporting angle) here.

Option 3 — Triage if you’re close to a restriction date

If your restriction date is close, the goal is to stabilise and act quickly without panicking:

• confirm the exact deadline in your ii communication
  
• decide whether an in-specie route is possible
  
• initiate the transfer path that has the highest probability of completing in time
  
• avoid unnecessary liquidation unless it is the only viable route

In-specie vs cash transfer (the decision that drives outcomes)

A transfer out usually happens in one of two ways:

• In-specie (re-registration): assets move without being sold
  
• Cash transfer: assets are sold and transferred as cash
  

In-specie reduces disruption, but it’s not always possible. Cash can be quicker in the majority of cases, but for US residents it can also be the route that forces PFIC disposals and creates unwanted reporting complexity.

What to do this week (transfer out checklist)

1. Find your ii cut-off date and restriction wording (don’t rely on hearsay).
   
2. Split your situation into three lists: SIPP holdings, ISA holdings, GIA holdings.
   
3. Identify what can move in-specie vs what may force a cash route.
   
4. Confirm receiving eligibility first, don’t assume a platform will take US residents.
   
5. PFIC triage: if you hold pooled funds in an ISA/GIA, assume PFIC risk may exist until proven otherwise. Flag the holdings list for your US tax adviser.
   
6. If you hold US shares in an ii Trading Account or ISA, ii’s process may require a W-8BEN for US share trading in those wrappers (more information here)

Common mistakes we’re seeing

• Starting a transfer before confirming the receiving provider will accept US residents
  
• Assuming in-specie is always available
  
• Selling first “to make it easier”
  
• Ignoring PFIC exposure inside ISA/GIA until after selling (this is the one that causes the most regret)

How Cameron James helps

We support clients through:

• triage: what is impacted, what the deadline is, what can break a transfer
  
• route planning: realistic destination options based on residency and objectives
  
• execution support: reducing transfer delays and avoidable errors
  
• PFIC flagging and coordination: we help identify when PFIC risk is likely, and coordinate with a qualified US tax adviser (we do not give tax advice).