Many Americans living abroad either aren’t aware that they're eligible to vote in US federal, state, and local elections, or don’t know how to. As expats have to file US taxes though, they also have the right to vote, and expat votes have the potential to make a difference, particularly in close contests. Although the registration process and requirements can seem convoluted at times, it’s important to effectively exercise your right to vote and play an active part in molding the future of your nation, particularly as, despite living abroad, laws made in the US still affect you. In this article, you’ll learn about: • Who can vote from abroad? • Determining your voting residence • Voting from abroad procedure • Who can vote from abroad • Does voting from abroad affect your US taxes? Who can vote from abroad? United States citizens who currently reside outside the country and who satisfy specific qualifying requirements can register to vote. These requirements are that you have to be at least 18 years old, and you need to register in the US state where you last resided. Determining your voting residence In most cases, the state in which you most recently lived or the state with which you have the strongest links is considered your US voting residence . To guarantee that your vote will be counted, make sure that you familiarize yourself with the voter registration requirements and absentee ballot application deadlines in your state. Even if you are only interested in voting in federal elections, you still need a voting home where you’re registered to vote by absentee ballot. This dwelling may still be considered genuine even if: ·You no longer have any links to that state, including ownership of any property there. · It needs to be clarified whether or not you intend to return to that condition. · Your primary address is no longer valid as a residential address in the United States There are some Americans citizens living abroad who have never resided in the US, such as the children of US citizens who were born abroad. They may also be able to vote if their American parents last lived in one of 36 US states . Voting from abroad procedure The voting procedure consists of two steps: Annually, you must provide your local election authorities with a completed Federal Post Card Application (FPCA). This allows them to: · Verify that you are qualified to vote · Add your name to a list to be sent absentee ballots You will then receive an absentee ballot in blank either online or in the mail. You need to fill out the ballot and send it back in time for it to arrive before the date set by your state. To vote absentee in a federal election, if you have yet to receive your blank ballot at least 30 days before the election, you should utilize a federal write-in absentee ballot. How to vote from abroad 1 - Find out where you're registered to vote As mentioned, the state where you most recently lived is normally considered your voting residence . For example, this may be the place where you were born and raised, where you attended school, or where you own property. Next, research the rules and deadlines that govern voter registration and requests for absentee ballots in your state, since they can differ from state to state. In addition, the Federal Voting Assistance Program (FVAP) provides information on state-specific voting restrictions. 2 - Become a registered voter and submit a request to vote absentee After identifying the location where you are eligible to vote and researching the rules and deadlines, the next step is to sign up for voter registration and ask for an absentee ballot. This may be done either via the FVAP website, online or by mail, or through the embassy or consulate of the United States in your residency. If you have previously registered to vote but need to update your information, or if you have moved since then, you should request a new Federal Post Card Application (FCPA). 3 - Obtain a copy of your ballot After your request for an absentee ballot has been approved, the state where you live will send you a ballot in one of three different ways: by mail, by fax, or by email, according to the rules in the state where you’re registered. Read the instructions on the ballot thoroughly and adhere to them to the letter to guarantee that your vote will be counted. 4 - Submit your vote After you have finished marking your ballot, you have to submit it. Some states let you submit it electronically, otherwise, you can either mail it back to the address on the ballot, or deliver it to your nearest US embassy. If you can’t submit it electronically, you should allow plenty of time for either the postal service or your Embassy to return the ballot to the US, to ensure that your vote is counted. 5 - Follow up After you have handed in your ballot, you should follow up with the election authorities in the state where you’re registered to confirm that your ballot has been received and that your vote counted. In addition, you may be able to check whether your ballot was received and counted using the tools provided on the FVAP website. Does voting affect your US taxes? Your US federal tax filing status will not be impacted in any way if you vote from abroad as an expat. US individuals residing outside the country are still required to comply with US tax regulations, which include declaring their income from anywhere in the world and submitting annual tax returns. In addition, several states in the United States have particular regulations regulating the collection of state income taxes from residents of those states who are residing outside the country. It is of course up to you to understand and comply with these regulations. The Foreign Account Tax Compliance Act (FATCA) and other requirements compel US residents outside the country to declare any foreign bank accounts and assets they have, too. Useful links and organizations Federal Voting Assistance Program - https://www.fvap.gov/citizen-voter American Citizens Abroad - https://www.americansabroad.org/information/voting-and-representation/ Vote From Abroad - https://www.votefromabroad.org/ US Vote Foundation - https://www.usvotefoundation.org/vote-from-abroad-overseas-voting Overseas Vote Foundation - https://www.overseasvotefoundation.org/vote/home.htm Democrats Abroad - https://www.democratsabroad.org/voting Republicans Overseas - https://republicansoverseas.com/#register If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

“Our tax code is so long it makes War and Peace seem breezy.” - Steven LaTourette One of the most common financial questions expats ask is: how does the US tax foreign savings and retirement accounts? It is an important consideration, as the answer informs everything from whether to open a checking account overseas to long-term retirement planning strategies. In this article, we’re going to recap and clarify the US tax rules relating specifically to overseas savings and retirement accounts for expats. In this article, you’ll learn about: • Reporting foreign savings accounts • Reporting foreign retirement accounts • Taxation of foreign retirement distributions • Should expats save in the US or abroad? Reporting foreign savings accounts First off, just having a savings account abroad doesn’t open you up to any new US tax liability. However, it may need to be reported under FBAR and FATCA rules . To recap, FBAR reporting is a requirement for any American (including expats) who has over $10,000 in total combined max balances in foreign financial accounts that they have signatory authority over at any time during a given year. FATCA reporting is a separate requirement for Americans who have financial assets registered abroad with a total value of over $200,000 at the end of the year, or $300,000 at any one time (thresholds are doubled if you doing a joint filing) While there are subtle differences in exactly which types of accounts qualify for each, foreign savings account balances qualify for both FBAR and FATCA reporting if the total of the combined balances of all of your non-US financial accounts exceeds the minimum reporting thresholds. FBARs are filed on FinCEN Form 114, while FATCA reporting means filing IRS Form 8938. Reporting foreign retirement accounts US reporting of foreign retirement accounts varies depending on the type of account. Most foreign retirement accounts qualify under FBAR and FATCA reporting rules if they are individual (rather than national social security) accounts, and depending whether your total combined qualifying foreign account balances exceed the respective reporting thresholds. Some types of foreign retirement accounts trigger further reporting requirements too. Notably, investing in foreign pooled funds (such as mutual funds or ETFs), which the IRS classifies as Passive Foreign Investment Companies (PFICs), mean additional complex reporting. It’s worth seeking advice before investing in this type of retirement account, as they can trigger additional taxation, too. Some foreign retirement funds, such as Australian Superannuation funds, may be considered to be foreign trusts, also triggering additional reporting. Even if you only have standard employer pension account, your employer’s pension contributions may be taxable. Meanwhile, foreign state social security pension contributions aren’t reportable to the US. Taxation of foreign retirement distributions In general, all Americans must report their worldwide income and pay US federal income tax on it. This includes pension income, keeping in mind qualified pension plans such as a 401(k) and IRAs may have certain US tax benefits. While many types of foreign pension distributions enjoy a similar tax exempt or reduced tax status to US qualified pension plans in a foreign country, they aren’t generally considered as qualified retirement plans by the IRS and so don’t typically enjoy the same favorable tax treatment in the US. - Nathalie Goldstein EA, MD at MyExpatTaxes Some US tax treaties recognize and address this issue, notably the Double Taxation Agreements (DTAs)s the US has with the UK and Canada, however the majority of DTAs don’t, leaving most foreign pension distributions liable to normal US income tax for Americans living abroad. As a result, expats should consult an expat-specialist financial planner to help them address this important issue and minimize their future US tax liability when saving for retirement. If you live in a country where a tax treaty does address this issue, you will have to file Form 8833 with your federal tax return to claim the tax treaty benefit. Keep in mind, the tax treaties are not straightforward for Americans, especially concerning pension income distributions. While the majority specify residence based taxation of pension income distributions, this benefit is not exempt from the Savings Clause of each treaty, meaning as a US Citizen, you cannot use it. Should expats save in the US or abroad? Unfortunately, there isn’t a single, simple, universal answer, as it depends on many factors, not least your financial planning goals and where in the world you live and plan to live in the future. Alongside the reporting and tax rules (and details of the DTA with the US) of the country where you live, the other significant factor is whether you plan to return and live in the US after you retire. DTAs are significant, and some countries have a big advantage in this respect for savers. For example, if you live in the UK, thanks to the relatively generous DTA that the US has with these countries, you will receive the same tax-free benefits whether you live or save in the US or in the country where you live. Belgium and the Netherlands on the other hand are examples of countries where it’s normally better to save in the US, as you won’t get the same tax deferral or distribution benefits otherwise, while if you live in Spain or Germany, you won’t get these benefits at all! Some expats in fact, such as those who work remotely, choose where to live based on where they can benefit most in terms of minimizing taxes and retirement saving, both while they’re working, and then again perhaps moving country when they retire. As an example, while France has higher income tax rates than the US, thanks to a clause in the US-France tax treaty that US Citizens are eligible to use, it allows US pension income to only be taxed in the US, so that Americans who retire in France with pension income from the US will pay lower tax rates compared to if they lived in some other European countries. Decisions relating to long-term saving and planning for retirement should always be made after seeking advice from your financial advisor. This is especially true for expats, due to the more complex nature of cross-border financial planning. If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

"A person doesn't know how much he has to be thankful for until he has to pay taxes on it." - Anonymous The US tax system is different compared to most countries. This has been the case since the nineteenth century, however in today’s globally-connected digital age, the difference is felt more keenly, and particularly by expats. In this article, we’ll explore exactly how America’s tax system differs from other countries. • What is CBT? • Why does the US have CBT? • What systems do other countries have? (with examples) • What does CBT mean for expats • The intersection between US and foreign taxation • Other tax differences between the US and other countries What is CBT? The US tax system is fundamentally different compared to most countries because the US taxes citizenship . This type of tax system is known as citizenship-based taxation, or CBT, and it means that all US citizens(as well as Green Card holders) have to file US taxes on their global income, whether they are resident in the US or abroad. The US doesn’t just tax US citizens though, it also taxes resident non-citizens (known as resident aliens), and income earned in the US by non-resident non-citizens (known as non-resident aliens), so covering all bases. The only other country in the world that currently has CBT is Eritrea, in East Africa. Why does the US have CBT? The origins of CBT in the US date back to the Civil War, when many northern landowners left the country, heading to either Canada or Europe to avoid the fighting. This presented a serious problem for the US government though, as landowners were the primary source of the taxes that funded the northern war effort, so if landowners were no longer resident in the US and so no longer liable to pay US federal taxes, the government would potentially be starved of funds. The solution was struck upon to tax US citizens, including non-residents, to keep the taxes flowing, and CBT was born. It could therefore be said that CBT played an important role in securing the eventual Union victory. After the war, when the landowners returned, the system was never revoked. What systems do other countries have? Most foreign countries have either a residence-based (RBT) or territorial-based (TBT) tax system, or a combination of both. A residence-based tax system means that the country taxes just those people who reside in the country. Every country has its own definition of qualification for tax residency, but typically if either your main home is in the country, or your main place of work or source of income is in the country, or you spend more than a certain amount of days each year in the country, then you are considered a resident for tax purposes there. Some countries with RBT tax residents on their worldwide income, others on just their income generated in the country. A territorial-based tax system means just taxing income generated in the country, whether the recipient of the income is resident in the country or not. The majority of countries have residence based tax systems. Countries with territorial systems include Costa Rica, Panama, Paraguay, Malaysia and Singapore. What does CBT mean for expats? If you only ever live in the US, you wouldn’t necessarily know that the US has a citizenship-based tax system, unless you have offshore income. American expats however are directly affected by CBT, as it means that they have to file US taxes on their income earned abroad as well as any income they receive in the US. Until recently, most expats didn’t know about this antiquated requirement, and it didn’t matter, as the IRS had no way of knowing about the finances of Americans living abroad and so enforcing CBT for Americans living abroad. In the 21st century however, through a combination of information sources, the US government can access American citizens’ financial details globally, and so enforce CBT for expats. The information sources include credit card expenditure (if the card issuer is a US company), and bank balances of nearly all banks globally (including foreign banks), as well as foreign tax information due to information exchange agreements and information exchange clauses in tax treaties with foreign governments. The intersection between US and foreign taxation If an American lives in a country with residence-based taxation (including most developed countries), then they will have to pay taxes in their country of residence as well as US taxes. The US has signed tax treaties with around 60 other countries, but rather than exempting expats from filing US taxes, these treaties state that when expats file their US taxes, these treaties state that when US citizen expats file their US taxes, they must still report their world-wide income but then may claim a credit for income taxes paid to the foreign country to alleviate double taxation. “Tax treaties serve an important purpose for US taxation since they dictate sourcing and which country has the first right of taxation on income. They also provide for treaty resourcing income in order to utilize foreign tax credits. One key example is retirement/pension distributions. Under most US tax treaties, the country of residence at the time of distribution has the first right of taxation on pension distributions, unless otherwise stated in the treaty.” - Shannon Meyer CPA, Aspyr Group Expats who live in countries which don’t have a tax treaty with the US can also claim foreign tax credits . Tax treaties can be useful for some expats though, as some tax treaties retain the tax benefits of US retirement plans abroad, for example (and vice versa). So while expats always have to file US taxes, when they file they can claim US tax credits to avoid double taxation. There is another provision called the Foreign Earned Income Exclusion which can also alleviate double taxation, and which is sometimes more beneficial, so always consult a US expat tax professional to ensure you’re filing from abroad in your best interest. An American living and working for a French company in France will have their income taxes deducted at source, so they may not have to file a French income tax return, if employment is their only source of income. They will however have to file a US tax return to report their French employment income to the IRS. When they file Form 1040, they can also file Form 1116 to claim the Foreign Tax Credit, which will give them US tax credits to avoid double taxation. They may also have to report any foreign-registered financial accounts and assets that they may have. Other tax differences between the US and other countries Aside from CBT, US taxation has some other notable differences compared to most foreign countries. First, the US has relatively low personal income tax rates compared with most European countries (or more specifically, higher thresholds, resulting in lower tax bills). While in most countries, income tax rates increase for higher income amounts (including the US), some foreign countries have a flat tax, meaning the same personal income tax rate is applied to all income. Examples of countries with a flat rate of income tax include Bolivia, Belize, Romania, Mongolia, Estonia, and Georgia. Many foreign countries have additional taxes that the US doesn’t, such as wealth taxes in France and Spain for example, and solidarity taxes in Germany. Some countries have no income taxes meanwhile, such as the Bahamas, Bermuda, the UAE, and the Cayman Islands. Wrapping up Penalties for not filing taxes are almost always stringent in all countries, so it’s best not to act based on hope or assumptions. Every country has its own tax rules, and while the US CBT system is different, you shouldn’t make any assumptions or rely on online research about other countries’ tax systems as a substitute for seeking trustworthy expert advice. If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

“Today, it takes more brains and effort to make out the income-tax form than it does to make the income.” - Alfred E. Neuman International Tax Treaties, Double Tax Agreements, or DTAs, also referred to as Bilateral Tax Treaties, are intended to help expats avoid double taxation (i.e. being taxed on the same income by two different countries). As Americans living abroad are often liable to both US taxes as US citizens as well as foreign taxes as residents of a foreign country, double taxation is often an issue. However, as you’ll see, the DTAs the US has signed don’t often help expats avoid double taxation after all. In this article, we’ll explain why, as well as when tax treaties can help, how to claim tax treaty benefits if you need to, and talk about social security and estate and gift tax treaties, too. In this section, you’ll learn about: • Does the US have tax treaties? • Do tax treaties benefit Americans living abroad? • When can tax treaties benefit expats? • How can expats claim tax treaty benefits? • How to file Form 8833 • What about social security tax agreements? • What about estate and gift taxes? Does the US have tax treaties? The US has signed tax treaties with numerous countries across the world, from Armenia to Vietnam. Each treaty contains a different set of rules regarding reduced rates and exemptions. Over 60 countries have signed a tax treaty with the US, and each different treaty covers a range of different scenarios and taxes, from corporation taxes to estate taxes. Many foreign governments want to attract American investors, and to make it easier, foreign countries will often include provisions in tax treaties that reduce withholding taxes on dividends, interest and royalties. Do tax treaties benefit Americans living abroad? Tax treaties can help Americans living abroad, but unfortunately only a few expats actually benefit from them. In most cases, the tax treaties that the US has signed include a Savings Clause that allows them to apply US taxation on Americans living abroad as if the treaty didn’t exist. Instead, most treaties allow Americans living abroad to claim the Foreign Tax Credit when they file their US tax return to avoid double taxation. It’s also worth noting that most US tax treaties contain a provision that allows the two countries to share and exchange tax information. When can tax treaties benefit expats? While rare, tax treaties can benefit expats living abroad. For example, there are some occupations that qualify for exemptions in many US tax treaties, most often for students, teachers, or researchers. Teachers and researchers are usually exempt from taxes for two to three years, while students and trainees often get four to five years under tax treaty benefits. After these periods of time are finished, the US considers you a resident of the foreign country. Other professions that can benefit from DTA provisions are professional athletes and sportsmen who are abroad training or competing, and entertainers who are performing overseas, depending on each treaty. Some tax treaties also have provisions covering the double taxation of dividends, or retirement income, or prevent withholding taxes for independent contractors (including freelancers). To provide an example, Article 17 of the US/UK tax treaty allows contributions to a qualifying UK pension plan to be tax-deferred like a standard US 401k. Distributions also receive exemptions, while UK state pensions are only allowed to be taxed by the country where their recipient is a resident. The way IRAs are treated in DTAs is covered in more detail in a separate guide. The first ever tax treaty is thought to be an agreement signed between Great Britain and Switzerland on August 18, 1872 to prevent the double taxation of death estate taxes. The first US tax income tax treaty was signed with France in 1932. There are now over 3000 bilateral international tax treaties in place around the world. How can expats claim tax treaty benefits? Expats can claim tax treaty benefits by filing IRS Form 8833. So if you’re an expat living in a country that has a tax treaty with the US that has a provision that you could benefit from, you should attach this form to your annual American tax return. How to file Form 8833 Filing Form 8833 involves writing a brief description explaining the treaty provision that you want applied to your tax return. An example of when this may be necessary is if you were a resident in one country but carried out work in others, including the US, that may affect your ability to claim foreign tax credits. The statement should include information about your country of tax residence, your travel dates and purpose of travel (if relevant), the treaty provision you are invoking, and the types and amount of income that you believe is exempt from taxes, according to the tax treaty. What about social security tax agreements? Americans living abroad who are self-employed or who work for a US-based employer are still liable to pay US social security taxes. Many other countries require residents to pay social security tax too, which can lead to double social security tax liability for Americans. While double social security taxation isn’t covered in DTAs, the US has signed a separate set of tax treaties with 30 other countries to cover it, known as Totalization Agreements . If you live in a country that has a Totalization Agreement with the US, you will only pay social security taxes to one country, normally dependent on how long you intend to live abroad for. So if you are living abroad for less than typically either 3 or 5 years (depending on the treaty), you can continue making social security contributions to the US, and not in your country of residence. If you’re there (or intend to stay there) for more than 5 years though, you will contribute in your new country of residence. Totalization Agreements also stipulate that contributions made while you’re abroad to either country can be applied to your social security entitlement in either country, depending where you eventually retire. This means that you usually don’t need to get the full number of credits in the country where you retire to qualify to receive social security benefits in retirement. What about estate and gift taxes? While estate and gift taxes aren’t covered in DTAs either, again the US has signed a separate set of international estate and gift tax treaties with 15 other countries to avoid double taxation. These countries are Australia, Austria, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, South Africa, Switzerland, and the UK. Each treaty is different, with some covering just estate taxes, and others covering gift taxes too. In conclusion, the majority of Americans living abroad don’t need to use tax treaty provisions, as they can avoid double taxation by claiming either the Foreign Earned Income Exclusion or the Foreign Tax Credit. But there are still plenty of situations where a tax treaty may be useful, so it’s always worth asking your expat tax advisor. If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

In an increasingly interconnected world, families with dual citizenship often encounter complex challenges when it comes to estate planning and managing inheritance taxes across different countries. One common concern revolves around the implications of acquiring citizenship in a new country on long-term financial strategies, especially regarding inheritance taxes in both the US and the UK. Understanding the intricacies of inheritance tax laws in both jurisdictions is crucial. Similar to the US, the UK imposes an inheritance tax (estate tax) on worldwide assets for UK-domiciled individuals, including assets held within and outside the UK. You should primarily work with the US-UK inheritance tax double taxation relief agreement, which most other countries don't enjoy.   https://www.gov.uk/guidance/inheritance-tax-double-taxation-relief Thereafter, as the UK has lower thresholds for inheritance tax, the next aspect to consider will be whether you have one of three primary determinants applying to you from a UK inheritance tax perspective: domicile of origin (a person’s domicile at birth), deemed domicile (not resident in-country, but considered domicile for inheritance tax purposes), and general domicile. While residency duration may trigger considerations under general domicile, acquiring citizenship in the UK does not automatically establish domicile status. Tax authorities subjectively interpret individuals' intentions, adding further complexity as they tend to look at a wide variety of aspects in a holistic manner, potentially from where you spend your time, where your family resides and/or studies and perhaps even where you have a burial plot. Acquiring UK citizenship is a factor which may imply an inclination towards UK domicile, though it does not provide a definitive answer. It is important to consult a professional on these aspects in order to best prepare yourself with the estate plan most appropriate for your personal situation. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER AND ARE NOT ESTATE SPECIALISTS. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN.

The UK Finance Manager, Rachel Reeves, announced the new tax budget last month, which contained significant changes. Most significant to the US expat is the fact that the new budget includes a provision to raise UK capital gains taxes. The lower rates in the UK will go up from 10% to 18%, and the higher rate from 20% to 24%. This is now higher than the US capital gains rates (0%, 15% and 20%) What does that mean for you? The simplest answer is to take advantage of the lower US capital gains rates by investing in an ISA (individual savings account). Capital Gains Differential In the new UK budget, the capital gains rate has increased. The capital gains tax-free allowance is now down to £3,000, and capital gains tax rates have moved from 10% to18% in the basic tax band and from 20% to 25% in the higher bands. Therefore, you may be better off paying US capital gains taxes and avoiding UK taxes by placing the money in an ISA. US Long-Term Capital Gains Tax Rate 2024 are as follow: Capital Gains Tax Rate Single Married Filing Jointly 0% $0 to $47,025 $0 to $94,050 15% $47,026 to $518,900 $94,051 to $583,750 20% $518,901 or more $583,750 or more (Short-term capital gains are taxed as ordinary income according to federal income tax brackets) ISAs In 2024, as a UK resident, you can contribute up to £20,000 annually to an ISA. The UK recognizes this investment much like the Roth IRA. It is not income tax deferred when you contribute, but grows tax deferred and is never charged UK capital gains taxes. However, the US does not recognize ISAs as a tax deferred vehicle and will tax them as an ordinary account, so you will be subject to US capital gains taxes. But now, the US capital gains rate is much lower than the UK rates so this could be to your advantage. There are two primary types of ISAs: Cash ISAs - A Cash ISA functions mainly in the same way as a standard savings account. However, if you have a Cash ISA, you will not pay UK tax on the interest you earn, whereas if you have a savings account with a bank or building society, you will pay Income Tax on earnings over £1,000. Stocks and Shares ISAs - Your money can be invested in assets like shares, bonds, property, and commodities. For US expats you will want to stay with shares and bonds, not ETFs for Mutual Funds as they can be considered PFICs and cause you an undue tax burden, In a Shares ISA (also known as an investment ISA), and you don't have to pay UK tax on capital gains or income (interest and dividends). But, you will pay the lower US capital gains taxes. PFICs If you walk into many high street banks, they won’t permit you to buy one of their off-the-shelf ISAs (except for a cash ISA). With this, they are doing you a favor as the IRS in the United States would classify these investments as PFICs (Passive Foreign Investment Companies). PFICs are subject to strict and complicated tax guidelines set by the IRS to close tax loopholes on US citizens avoiding taxation on foreign income. Taxes vs Diversification If you think that an ISA might be right in your specific circumstance, you should also consider the fact that you may be giving up some opportunities for diversification. Since it is not recommended that you use a mutual fund in your ISA because of the PFICs, you will need to purchase individual shares in US companies. Mutual funds and ETF positions offer diversification through the various investments inside of the fund. Single stock positions are not. So, be sure you consider your risk exposure if you decide to invest in an ISA. Dunhill Financial has partnered with Morningstar Wealth Platform (formerly Praemium) to provide compliant portfolios that can be utilized in an ISA. Morningstar Wealth Platform (formerly Praemium) issues 1099s to make your US taxes as simple as possible, and we ensure that we use no PFICs (i.e., all US-listed securities). Contact our expert advisors to see how they can help in your situation. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2024 Dunhill Financial. All rights reserved.

The UK Spring Budget on Wednesday March 15th 2023 saw Chancellor Jeremy Hunt making large scale reforms to the UK pension regime. During the Chancellor’s 2023 Spring Budget, he announced that the Lifetime Allowance (LTA) is to be scrapped altogether and that the Annual Allowance (AA) would rise from £40,000 up to £60,000. Currently the LTA stands at £1.073m with any pension savings above this amount being subject to charges of 55% on excess benefits taken as a lump sum and 25% for excess benefits being taken as income. Reports that there were fears of high earners (doctors specifically being listed) retiring early (in their 50s) due to the freezes on the LTA and AA are understood to be the key driver behind this momentous move. Furthermore, the Spring Budget saw both the Money Purchase Annual Allowance (MPAA) and Minimum Tapered Annual Allowance (MTAA) set to increase from £4,000 to £10,000. In essence, both the MPAA and MTAA are limits to how much individuals can place into their pension per year. For the MPAA, this is once the individual has flexibly started taking benefits out of their pension. The MTAA is relevant for high earners earning past a certain threshold to the extent that their allowable contributions are tapered down as far as the rules allow. There is much to be excited about here for people at all stages of their pension journey. The increase in the AA is a big win for those focusing on accumulating significant amounts in their years prior to retirement, whilst the increase in the MPAA is certainly welcome to those who may wish to have some flexible access to pensions, yet still have many years to invest and have their funds grow e.g. semi-retired individuals. Given that UK pensions are not subject to Inheritance Tax (IHT), this budget opens up significant estate planning opportunities for High Net Worth Individuals in the UK. The changes listed will be implemented in April 2023. If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

When moving to the UK, if you are employed by a UK firm you will most likely find yourself enrolled into a workplace pension. This is known as 'auto-enrolment'. Through auto-enrolment you will be placed into a suitable direct contribution pension. Your contributions are paid into a pension pot and you will have a range of investment choices available to you: how extensive this range of investments is will depend entirely on the pension provider. With auto-enrolment, the minimum contributions required are: Employee: 5% (including tax relief), Employer: 3% Contribution splits may vary from company to company. Discuss with your HR representative to be sure of how much you and your employer are contributing. Within this article, we will be highlighting some key features/considerations when it comes to UK pensions. US citizens and UK pensions Thankfully, UK pensions are protected by the US-UK Tax Treaty. This means that so long as your money remains within a UK registered pension, it will not face exposure to US taxes. Furthermore, as UK pensions are covered by the aforementioned treaty, investments held within your UK pension(s) will not be subject to the Passive Foreign Income Company (PFIC) rules, which ordinarily apply to US investors abroad. See Dunhill Financial’s PFIC Reporting Explained . Lifetime Allowance The Lifetime Allowance for UK registered direct contribution pensions is £1,073,100 (2022/23). Should your pension pot grow above this figure, you will face charges on the excess amount when gaining access to your pension pot (55% for lump sums and 25% for income). Contribution Allowances The annual allowance for UK pension contributions stands at £40,000 per year, or 100% of your income if lower. Should you go above this threshold, you will be required to pay tax on your excess contributions. Carry Forward Should you have any unused pension annual allowance in the previous three tax years, this can be used in the current tax year, should you have the means and inclination to do so. For example: Client: Mr. Smith Salary £42,000 per annum (Gross) As you can see in the table above, Mr. Smith has been able to carry forward the full amount from the previous three financial years into the current year’s contributions. Should this be something you are considering, we recommend discussing this issue with your accountant. Please note, you must have been a member of a UK registered pension scheme, for each financial year that you are applying carry forward. Tax Relief Private pension contributions in the UK are subject to tax relief. On your workplace pension, whether or not you are entitled to tax relief will depend entirely on how your contributions are made. Should your contributions be made using the Net Pay Method , contributions that are made before tax can be deducted and therefore tax relief will not be granted, as it is considered to already have been received by means of reducing your taxable income. If the Relief at Source method is used for your pension contributions, then 20% tax relief (basic rate) is claimed by your workplace pension provider, e.g. an £80 contribution would result in a total contribution of £100. If you pay higher rate (40%) or addition rate (45%) tax, then you may be able to claim an additional 20% or 25% in tax relief, respectively. This can be done by way of self-assessment, or by contacting HMRC and requesting directly. Check with your HR Representative on how your workplace contributions are made. You are unable to claim tax relief on employer contributions, as they are made pre-tax. Accessing Your UK pension At present, you can access your UK Workplace/Private pension(s) from age 55, increasing to 57 from 2028. There are multiple considerations with potentially significant tax implications when it comes to taking income from a UK workplace/private pension, which we will cover in a separate article. Priorities If you are thinking about making additional contributions/significant changes to your UK pension(s), we have put together a basic priorities list of considerations. Please note that this is a suggested priorities list and each individual case is different. 1) Putting together an Emergency Fund Before increasing your contributions, we advise that you should ensure that you have a minimum of three to six months of expenses held in cash, in a readily available account. This is known as your Emergency Fund and acts to provide you with liquidity in uncertain times/unforeseen circumstances (we never know when we are going to need to buy a new boiler or repair a car!). 2 ) Specific Savings Goals Once you have established your Emergency Fund, it would now be a good time to consider any specific saving goals that you may have and to budget accordingly for them. For example, saving for a deposit for a mortgage. 3) Specific pre-retirement investment goals As highlighted previously in this article, you cannot access your UK workplace or private pension until you are at least 55 (57 from 2028) and there are several tax/financial planning implications to take into account when doing so. Therefore, should you have any investment goals with a time horizon that lands pre-55 or pre-retirement, then it is a good idea to get a full understanding of these goals, what suitable investment vehicles are available, as well as ascertaining your attitude to risk and capacity for loss. 4) Consider increasing monthly contributions or making additional contributions. Once you have addressed the previous three areas, it may be worth considering increasing monthly contributions or making a one off, or multiple additional contributions. UK direct contribution pensions act as a great tax wrapper which allows your investments to grow free of capital gains tax and income tax (income tax is potentially chargeable once an individual takes income from the pension). The longer your money is invested within your pension, the longer you have the potential of cumulative growth. However, ultimately the decision to increase your funding or make additional contributions is a personal one, which will come down to affordability and goals. 5) Consolidating previous workplace or private schemes into your current scheme Should you have any previous UK workplace or private pension schemes, it could well be worth considering moving them into your current workplace pension. These days, we see people changing jobs and/or companies far more frequently. It is not uncommon for people to reach retirement to find that they have 4+ workplace pensions in different locations. By having all of your pensions in one place, you can ensure that you have a cohesive investment strategy. Furthermore, you make things far simpler by the time you come to needing to access your retirement funds, by virtue of having everything in one place. 6) Consider transferring funds to a SIPP Once you have started to accumulate a relatively significant amount in your workplace pension(s) (>£50,000), you may want to consider a transfer to a Self-Invested Personal Pension (SIPP). One of the key advantages of having a SIPP is that they offer a much more extensive choice of investments that are available for you to grow your retirement pot. You can have a SIPP or multiple SIPPs open alongside your workplace pension. When moving funds over to a SIPP from a workplace pension, it is advisable to keep your workplace pension open. This way you can still receive your employer contributions and periodically move funds over to your SIPP. If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

The UK government introduced an advantageous savings vehicle in 1999 and has increased the maximum amount that we can save in those several times since. At the time of writing in 2024, we can contribute up to £20,000 to such a plan annually. There are 4 types of ISAs: Cash ISAs  - A Cash ISA functions mostly in the same way as a standard savings account. However, if you have a Cash ISA, you will not pay tax on the interest you earn, whereas if you have a savings account with a bank or building society, you will pay Income Tax on earnings over £1,000. Stocks and Shares ISAs  - Your money is invested in assets like shares, bonds, property, and commodities in a Stocks and Shares ISA (also known as an investment ISA or S&S ISA), and you don't have to pay tax on capital gains or income (interest and dividends). Innovative finance ISAs  - You can become a lender with an ISA by lending to qualified individuals and businesses using an online peer-to-peer lending platform in exchange for a defined amount of interest over a certain length of time and paying no tax on the interest you earn. Lifetime ISAs  - You can save for your first home and/or retirement by contributing to a Lifetime ISA, and you won't have to pay tax on your earnings or capital gains. The government will add 25% to your investment (maximum £1000). Your maximum contribution for the year is £4,000 and if you are not using the money for your first home, you can access funds after turning 60. Cash ISAs are considered typical international bank accounts in the United States, with interest taxed at ordinary rates. When it comes to stocks and shares ISAs, though, you'll need to be cautious in determining the underlying investments. If the investment is in individual shares or bonds, the income is treated similarly to interest from a cash ISA, with income flowing to the appropriate section of the return (for example, schedule B, D, etc.) based on the nature and classification of the income produced. We will cover all three of the issues that are controversial regarding setting ISAs up for Americans in the UK. The three issues are PFICs, HMRC reporting funds, and the tax situation between the jurisdictions. PFICs If you walk into many of the high street banks, they won’t even permit you to buy one of their off-the-shelf ISAs (except for a cash ISA). With this, they are actually doing you a favor as the IRS in the United States would classify these investments as PFICs (Passive Foreign Investment Companies), which can become very costly from a tax vantage point. You can find plenty of information on the internet on why Americans should avoid this at all costs, even if you take the QEF election. HMRC The HMRC has a strict list of funds that meet their qualifications and are approved as offshore reporting funds. We utilize this guideline even for ISAs to keep all our clients’ portfolios consistently independent of whether they invest in a tax-advantaged wrapper or in a general investment account. Tax Situation The real reason that funding an ISA becomes controversial for Americans is the tax situation. In the UK, the growth and distribution of an ISA will not be taxed. However, the US does not recognize this tax advantage and will, therefore, tax the account as if it were a regular investment. So, why would we want to shift the tax burden from the UK to the US? Simply because US capital gains tax rates on passive income are lower than UK tax rates. For the UK tax year 2024-25, the tax-free dividend allowance is now £500. Dividends above this level are taxed at: 8.75% (for basic rate taxpayers) 33.75% (for higher rate taxpayers) 39.35% (for additional rate taxpayers) Capital gains also have a tax-free allowance of £3,000, but thereafter you will pay 20% taxes (unless you're in the basic rate tax band) which, apart from those making a significant salary, is higher than the rate in the US. Therefore, you're better off paying US taxes and avoiding UK taxes by placing the money in an ISA. With all these complications of even setting up an ISA for this small portion of the American population in the UK, you will find only a few firms that offer them properly. Dunhill Financial has partnered with Morningstar Wealth Platform (formerly Praemium) to offer compliant portfolios that can be utilized in ISAs. Morningstar Wealth Platform (formerly Praemium) issues 1099s to make your US taxes as simple as possible and we ensure that we use no PFICs (i.e., all US-listed securities) and that all funds are HMRC reporting funds. To learn more about this offering, please see our portfolios here . Get in touch with our expert advisors to see how they can help in your situation. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2024 Dunhill Financial. All rights reserved.

The short answer: they are now a smart move. With recent changes to the UK tax regime, shifting your tax liability to the US can be an effective way to reduce your overall tax burden. Since their introduction in 1999, Individual Savings Accounts (ISAs) have been a cornerstone of tax-efficient investing for UK residents. With an annual contribution limit of £20,000 for the 2024/25 tax year—frozen until at least 2030—they remain an attractive savings vehicle. However, for Americans living in the UK, ISAs present a complex and often controversial choice. Should US taxpayers contribute to an ISA? The answer hinges on a few critical factors: Passive Foreign Investment Companies (PFICs) and the divergent tax treatment between the UK and the US. The PFIC Pitfall If you're an American attempting to invest in an ISA, you may have been turned away by major UK banks. While this can be frustrating, it’s actually a blessing in disguise. The IRS classifies most non-US mutual funds and ETFs as PFICs, subjecting them to punitive tax treatment. The tax burden is severe, with complex reporting requirements that can lead to excessive tax bills. Even if you elect for Qualified Electing Fund (QEF) status, the administrative burden remains significant. In short, investing in non-US mutual funds through an ISA can create unnecessary tax headaches for Americans. At Dunhill Financial, we mitigate this by ensuring we avoid all securities that could be considered PFICs, preventing these tax complications. The Tax Dilemma ISAs are designed to be tax-efficient in the UK, with no income or capital gains tax on distributions. However, the IRS does not recognize this benefit—to the US tax authorities, an ISA is simply a standard investment account. This means income and gains remain fully taxable in the US. So, why would an American voluntarily shift their tax liability from the UK to the US? The answer lies in the comparative tax rates. The Autumn 2024 Budget, announced by UK Chancellor Rachel Reeves, raised UK capital gains tax rates, making the US tax regime more attractive for many American investors. US Capital Gains Tax Rates: Income Range (Single Filers) Income Range (Married Filing Jointly) Long-Term Capital Gains Tax Rate $0 - $11,600 $0 - $23,200 0% $11,601 - $47,025 $23,201 - $94,050 0% $47,026 - $100,525 $94,051 - $201,050 15% $100,526 - $191,950 $201,051 - $383,900 15% $191,951 - $243,725 $383,901 - $487,450 15% $243,726 - $518,900 $487,451 - $583,750 15% Over $518,900 Over $583,750 20% In the UK, capital gains have a tax-free allowance of £3,000 for the 2024/25 tax year, but once you exceed this, you will pay 18% tax if you are a basic rate taxpayer and 24% tax if you are in the higher rate band. Additionally, carried interest is taxed at 28%. For many Americans, this is higher than the long-term capital gains tax rates in the US, making it more beneficial to pay US taxes rather than UK taxes. In addition to the CGT allowances, there is a dividend allowance of £500. Dividends above this are taxed at:  8.75%  for basic rate taxpayers 33.75%  for higher rate taxpayers 39.35%  for additional rate taxpayers The Solution: ISA-Compliant Portfolios for US Taxpayers With all these complexities, very few firms offer ISAs in a way that works properly for US taxpayers. At Dunhill Financial, we have partnered with Morningstar to provide compliant investments by selecting individual stocks and bonds. Whilst this approach needs to be considered in a careful manner, and is not suitable for everyone, it does allow US persons to use an ISA to shift their tax liability to the US from the UK. Conclusion: Are ISAs a Smart Move for Americans in the UK? Following the Autumn Budget and the growing gap between UK and US capital gains tax rates, we believe ISAs have become an even more viable option for Americans in the UK. With UK capital gains tax rates rising relative to the US, deliberately shifting your tax obligations to the US through an ISA could be an advantageous strategy. By structuring your investments properly, you may reduce your overall tax liability while still benefiting from a tax-efficient savings vehicle. Get to know DF-Direct To learn more about how we strategically prevent tax complications  and explore opportunities for portfolio growth,   join our webinars  or sign up for an account today . You can also visit or websites at Dunhill Financial  and DF-Direct for our low cost robo-advisor. Get a complimentary copy of the American expat guide here  for more information about the financial planning process as an American expat. Join our referral program Have friends looking for smarter investing? Get $50 when you refer them to DF Direct! DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2025 Dunhill Financial. All rights reserved.

Investing can feel overwhelming, especially if you're navigating financial decisions across borders. DF-Direct simplifies the process, offering a streamlined, tech-driven solution tailored for U.S. expats. With no minimums and no hidden fees, you can start building your financial future today. What is DF-Direct? How DF-Direct Works Why Choose DF-Direct? Who is DF-Direct For? Discover financial insights on our YouTube channel & webinars What is DF-Direct? DF-Direct is a low-cost, automated investment platform designed specifically for U.S. expatriates. It provides globally diversified portfolios that are fully compliant with U.S. tax laws, helping expats manage their finances without unnecessary complications. Whether you're just starting out or already investing, DF-Direct offers a seamless way to grow and protect your wealth while living abroad. How DF-Direct Works DF-Direct offers a hassle-free approach to investing by leveraging advanced technology and expert insights. The process is simple: Sign Up – Get started with an easy, guided onboarding experience tailored to your financial goals. Portfolio Matching – DF-Direct assesses your risk tolerance, investment objectives, and timeline to match you with a professionally designed portfolio. Automated Investing – Your portfolio is managed through intelligent rebalancing, ensuring long-term growth while adapting to market changes. Compliance & Tax Efficiency – As a U.S. expat, you benefit from an investment solution that aligns with U.S. regulations while optimizing for global financial growth. Why Choose DF-Direct? Many traditional investment platforms are not designed to accommodate the specific needs of U.S. expats. DF-Direct stands out by offering: Regulatory Compliance – Investments remain compliant with U.S. tax laws and reporting requirements. No Minimum Investment – Start investing with any amount, making it accessible for all financial situations. Global Diversification – Exposure to international markets to help mitigate risk and enhance returns. Automated Rebalancing – Your portfolio is continuously optimized to stay aligned with your long-term financial goals. Transparent Pricing – No hidden fees, just clear and affordable pricing to keep more of your money working for you. Who is DF-Direct For? U.S. expats seeking a tax-compliant investment solution. Young professionals looking for an easy, hands-off way to invest. Those who want a globally diversified, low-cost portfolio. Investors who value automation and expert-driven asset allocation. Ready to invest smarter? Opening an account with DF-Direct is quick and straightforward. The platform guides you step by step, ensuring that your investments are aligned with your financial situation and risk appetite. With just a few minutes of setup, you’ll be on your way to a smarter, more efficient investing experience. Discover financial insights on our YouTube channel Dive into expert advice and practical tips for financial planning and expat life on our YouTube channel. DF-Direct Presents features insightful discussions with Brian Dunhill and expert guests, it’s your ultimate resource for making smart financial decisions—wherever life takes you. If you want join our webinars live, check out our latest events. Have more questions about how DF-Direct works? From account setup to portfolio management and compliance, our FAQ section covers everything you need to know. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2025 Dunhill Financial. All rights reserved.

The market update itself remains positive across the board, with large cap growth leading the pack as a trend continuation. Despite the rate cuts small caps have yet to participate in the upside on the same magnitude. Some positive developments out of China, combined with a weaker US Dollar for the month, have led to some gains in the Asia Pacific and EM regions, being the best performers on the 1-month and 3-month time-frames. Somewhat left-field, Utilities are now the best performing sector on a YTD basis for the S&P500 which can be somewhat explained by the recent rate cut of 50 bps by the Fed coupled with the increased energy demands by big-tech for the continued rollout of data centres to keep the AI narrative alive. The best performers for last month was GRID (clean energy/utilities/electrical grid) and FTGC (commodities), with the latter’s performance being explained by an uptick in Crude Oil due to middle east tensions but also a stronger Chinese fiscal/monetary response. Last but not least the yield curve; it continues to un-invert (see below) with the 2Y/10Y spread finally in the positive territory with all but the shortest of paper still at elevated levels which is likely to come down as a function of further Fed rate cuts. DISCLOSURES DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. THE INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. IT DOES NOT PRESENT THE FULL RANGE OF OPTIONS AVAILABLE TO YOU. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN.