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Cash ISA to

Financial discussion for any financial queries for Expats
PMTI
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Cash ISA to

#143977

Postby PMTI » June 5th, 2018, 7:20 pm

As a former UK resident, I have a cash ISA which is about to reach it's maturity date (was fixed interest for a few years). Under the rules, no longer being a UK resident, I understand that I am free to transfer my ISA funds to another account but not allowed to pay new money in.

My question is am I allowed to transfer to a different ISA provider? For example, I'm thinking of transferring some of it to an IFISA and some to a S&S ISA, neither of which my current cash ISA provider, provides. I wondered because it would involve opening a new account, which often - especially ISA products - have the declaration that you are a UK resident.

Thanks

PMTI

stevensfo
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Re: Cash ISA to

#143989

Postby stevensfo » June 5th, 2018, 9:24 pm

For the first paragraph, yes! You cannot pay more in, but you can keep it in another ISA. You cannot open a new ISA unless you are 'resident in the UK for tax purposes'. Some people can happily live outside the UK, e.g. working in embassies, Delegations, EU delegations, UK Miltary, EU Agencies, Commission etc, but considered resident in the UK.

The rest, I don't know. There's a huge difference between being an ex-Pat in the EU and outside the EU. If you're in the EU and have any address in the UK you can use for correspondence, sister, brother, parents etc, then you're fine for keeping your accounts going. But unless, you're Res. in UK for Tax purposes, you cannot add funds to an ISA.


Steve

torata
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Re: Cash ISA to

#144012

Postby torata » June 5th, 2018, 11:16 pm

PMTI wrote:... I wondered because it would involve opening a new account, which often - especially ISA products - have the declaration that you are a UK resident.


I suspect this might be the stumbling block. Many years ago I tried the same thing, to move a cash ISA to a new provider.

The response from all the institutions I approached was "yes you can move it, but you can't open an account with us because you are not UK resident, so you can't move it here."
However, it was also clear that people I were dealing with either had no real understanding of the issue and were either not in a position or bothered to actually deal with it.

In the end I moved my cash ISA to a pre-existing S&S ISA, and that went smoothly.

The number of institutions that are geared up to deal with UK nationals who are overseas residents is very small, but you might get further with them than, say, West Brom BS.

Your best chance is probably to let the ISA roll over into something with your current institution.
Or go with a financial institution you already have an account with.

torata

PMTI
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Joined: November 7th, 2016, 10:28 pm

Re: Cash ISA to

#144183

Postby PMTI » June 6th, 2018, 5:59 pm

I fear as much. I've emailed a few providers to see what they say.

In previous years, I've let them roll over with the same provider. However their rates are now worse than abominable and I can't bear it any more.

If there are no takers, Im considering taking the money out and moving it out of the country so I can at least do something with it.

monabri
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Re: Cash ISA to

#146309

Postby monabri » June 17th, 2018, 12:18 pm

ISA allowances are for UK residents. If you are not resident then you are not entitled to hold an ISA. That's my understanding.

PinkDalek
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Re: Cash ISA to

#146328

Postby PinkDalek » June 17th, 2018, 1:28 pm

monabri wrote:ISA allowances are for UK residents. If you are not resident then you are not entitled to hold an ISA. That's my understanding.


See viewtopic.php?p=143989#p143989

Non residents can continue to hold an ISA but are not permitted to make additional subscriptions whilst non-resident.

IanTHughes
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Re: Cash ISA to

#146331

Postby IanTHughes » June 17th, 2018, 1:34 pm

monabri wrote:ISA allowances are for UK residents. If you are not resident then you are not entitled to hold an ISA. That's my understanding.

Not quite the full story as I understand it.

A Non UK Resident is not allowed to pay money into an ISA whilst they are non-resident but they are perfectly entitled to hold onto any ISA's funded before moving abroad. As far as I am aware, they are also perfectly entitled to transfer such previously funded ISA's to another provider. Of course they have to find a provider that will accept such a transfer whilst they are non-resident, but the rules do allow it as far as I know.

Please do your own research and if I am mistaken, I apologise


Ian

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Re: Cash ISA to

#146336

Postby Lootman » June 17th, 2018, 2:01 pm

stevensfo wrote:There's a huge difference between being an ex-Pat in the EU and outside the EU. If you're in the EU and have any address in the UK you can use for correspondence, sister, brother, parents etc, then you're fine for keeping your accounts going. But unless, you're Res. in UK for Tax purposes, you cannot add funds to an ISA

I was not aware that there is a huge difference" between being in or out of the EU. If you are using a UK address to continue using a financial account then the financial institution won't really know where you are anyway. From their perspective you are a UK-based account holder. Your tax affairs are nothing to do with them.

Nor am I aware that you need to notify an institution that you are non-resident, and I'd take the view that it is none of their business where you live (*)

Even with an ISA I don't see why you need to tell the provider anything. You merely have to make sure not to add new money, as then you'd be breaking a HMRC rule. And again you could retain a UK address for ISA correspondence.

Being a non-resident for tax purposes used to be an election, so you could choose to be taxed as a UK resident even if you qualified not to be. In such a case you could continue to open new ISAs or add new money. But since the introduction of the statutory residency test it is my understanding that you no longer have that choice - you are either resident or non-resident purely according to the rules.

(*) There are some requirements and restrictions if you are a "US person", however.

Alaric
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Re: Cash ISA to

#146338

Postby Alaric » June 17th, 2018, 2:12 pm

IanTHughes wrote:As far as I am aware, they are also perfectly entitled to transfer such previously funded ISA's to another provider.


The question comes as to whether you can open an ISA account when non-resident. You cannot invest new money, but if you cannot open an account, your choice of transfers is restricted to whatever ISAs were opened whilst resident.


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