FBAR & FATCA: A Guide for Americans in the UK
Americans in the UK must report UK accounts, ISAs and pensions via FBAR and FATCA. Our guide covers thresholds, deadlines, penalties and how to catch up.
If you are a US citizen or green-card holder living in the UK, your reporting obligations to the United States do not stop at your income tax return. Two separate regimes — the FBAR and FATCA — require you to tell the US government about your foreign (in this case, UK) financial accounts and assets, even when no extra tax is due. They are easy to overlook, the penalties for getting them wrong are severe, and they apply on top of your UK filing. This guide explains what each one is, who has to file, the thresholds and deadlines, and how the two differ. It is general information only and does not replace personalised advice from a qualified cross-border tax adviser.
Key takeaways
- The FBAR (FinCEN Form 114) is required if the total of your foreign accounts exceeds US$10,000 at any point in the year — it is filed with FinCEN, not the IRS.
- FATCA (IRS Form 8938) is filed with your tax return and has higher thresholds that depend on filing status and living abroad.
- Both are reporting obligations — filing them does not by itself create a US tax liability.
- UK pensions, ISAs, and joint accounts can all count; ISAs lose their tax-free status for US purposes.
- Penalties are severe, but the Streamlined Filing Compliance Procedures offer a penalty-free route back for non-wilful filers who have fallen behind.
What is the FBAR?
The FBAR — Report of Foreign Bank and Financial Accounts, filed on FinCEN Form 114 — is a disclosure required by the Bank Secrecy Act, not the tax code. It goes to the Financial Crimes Enforcement Network (FinCEN), separately from your Form 1040. You must file if the aggregate value of all your foreign financial accounts exceeded US$10,000 at any point during the calendar year, even for a single day.
The $10,000 test is on the combined total, not per account. If you hold three UK accounts at £4,000 each, you are over the threshold and all three must be reported — not just any one of them. Accounts you have signature authority over, even if you do not own them, can also count.
What counts as a reportable account
The range of accounts caught is wider than many people expect. Common UK examples include:
- Current and savings accounts held with UK banks and building societies.
- Cash ISAs and stocks-and-shares ISAs — the UK tax-free wrapper is not recognised by the US.
- UK personal and workplace pensions, depending on how they are structured.
- Investment and brokerage accounts, and some UK life-insurance or investment bonds with a cash value.
- Joint accounts (each US owner reports the full value) and accounts you can sign on for an employer or family member.
What is FATCA (Form 8938)?
FATCA — the Foreign Account Tax Compliance Act — requires certain taxpayers to report specified foreign financial assets on IRS Form 8938, which is filed with your annual tax return. Unlike the FBAR, this one is part of the tax filing itself. It also captures a broader set of assets than the FBAR, including certain foreign securities and interests not held in an account.
The reporting thresholds are higher than the FBAR and depend on your filing status and whether you live abroad. For US taxpayers living outside the US, the thresholds are more generous:
| Filing status (living abroad) | Report if total assets exceed on the last day of year | …or at any point in the year |
|---|---|---|
| Single / separate | $200,000 | $300,000 |
| Married filing jointly | $400,000 | $600,000 |
Thresholds for taxpayers living inside the US are lower (from $50,000). Because the two regimes use different thresholds, forms, and filing destinations, it is common to have to file one, both, or neither in a given year — they must be assessed separately.
FBAR vs FATCA: the key differences
The two are frequently confused because they overlap. The simplest way to keep them apart is by who receives the form, the threshold, and the deadline:
| Feature | FBAR (FinCEN 114) | FATCA (Form 8938) |
|---|---|---|
| Filed with | FinCEN | IRS, with your tax return |
| Threshold (abroad) | $10,000 aggregate | From $200,000 (single) |
| Deadline | 15 April, auto-extended to 15 Oct | Your tax return due date |
| Covers | Financial accounts | Accounts + certain other assets |
| Basis | Bank Secrecy Act | Tax code |
Deadlines and how to file
The FBAR is due on 15 April, with an automatic extension to 15 October — no request needed. It is filed electronically through the BSA E-Filing System. Form 8938 is filed as part of your Form 1040; US citizens living abroad get an automatic extension of the return itself to 15 June, and to 15 October if a further extension is requested. Because the two regimes run on slightly different tracks, it is easy to file one and forget the other.
Penalties and catching up
Penalties are among the harshest in the US tax system. Non-wilful FBAR penalties can apply per year, and wilful violations carry far higher penalties tied to the account balance. Form 8938 failures carry their own penalties and can extend the period during which the IRS can examine your return.
The good news for those who have simply fallen behind: if the failure was genuinely non-wilful, the IRS Streamlined Filing Compliance Procedures allow you to catch up — typically by filing the last three years of returns and six years of FBARs — with no penalty for qualifying Americans abroad. Coming forward voluntarily before the IRS makes contact is almost always better than waiting.
Frequently asked questions
Does filing an FBAR mean I owe US tax?
Do I have to report accounts that earned no interest?
Do my UK ISAs need to be reported?
Do I file both the FBAR and Form 8938, or just one?
I haven't filed FBARs for years — what should I do?
Behind on your FBAR or FATCA filings?
Taxule helps Americans in the UK stay compliant with FBAR and FATCA — from first-time filing to Streamlined catch-up — alongside your UK and US tax returns. Get in touch to review your position.
Speak to a cross-border tax specialist