bristolmp

Hi,
I'm moving to Rome in the next few months. I called into Barclays today to ask about what happens to my isa's and savings, etc when I am non resident. To my surprise I was told that I would have to close my account once I am non resident. I am going to ring their help line next week to confirm just in case the info I was given was incorrect.
Has anyone else here banked with Barclays before becoming non resident?
Thanks

Ruby2

Hi Bristolmp

I have several UK bank accounts (not Barclays) and they have all accepted my change to an Italian address without difficulty. I can't open a new UK bank account and I can't add to my ISA as a non-UK resident. And the ISA doesn't have tax-free status in Italy. But I'm still able to operate my UK bank accounts as I could when living there.

I'd double check with Barclays. Closing your accounts seems a bit severe.

Scratcher

I bank with Barclays and I didn't tell them I was going overseas. I only changed the postal address to that of a relative. That was 17 years ago and I still use the account and credit card just fine.

Scratcher

quiltman

Same here Bristol Imp. Just used friends address as a UK mail address.Changed address online at Nationwide website. done!Thousands of expats still use their UK bank accounts. If you are now OFFICIALLY non resident then I suppose you have to declare ISA interest etc on your local tax return. i'm still taxed by HMRC on my UK State Pensions, but pay no tax on any monies transferred over here - part of the double taxation agreement.
Only HMRC and DWP have our address here in Cebu, Philippines. They are quite happy to write to us here.

Mitzyboy

Theres a lot of difference in what people have experienced.
When I was in Spain I had an HSBC account and a Cahoot account, and the associated credit and debit cards. HSBC knew I was abroad, as did Cahoot. Neither asked me to close my account.

ISA's we could have kept open, but not contributed further to.

Opening a new bank account was a little more difficult though. The best advice is to keep open what you have. I didnt tell the banks when I was moving abroad, however they were aware afterwards and didnt seem bothered. Also had an Amex card, and again they had no problem sending statements abroad.

As said though, ISA's are generally declarable in many european countries and not tax free, as are tax free lump sums on pensions. Tax free in the UK, but taxable elsewhere

bristolmp

As I said I was very surprised when I was told I would have to close my Barclays accounts if non resident. But it doesn't make sense, I will just change my address to my Italian one and say nothing about non resident, etc. If I had family here I would use there address but I don't and don't really want to bother friends.
My main reason for calling into Barclays was to ask about my savings and Isa's when one is non resident. I am non resident in Ireland and I do not pay any tax on interest earned on my savings! I get 100% of the interest less nothing.
I was wondering if the same applied in the uk when your non resident? I know some have mentioned declaring income, etc but for the moment my main query is are UK non resident tax laws the same as in Ireland i.e. pay no tax on savings (within the uk). In Ireland each account/savings account has to have a minimum of €15,000 to qualify for tax free status.
So therefore I would have to declare to my banks I'm non resident to avail of tax free status, hence why I will double check with Barclays next week.

JAJ

In general, including but not limited to,:

1. It is very difficult for a non-U.K. resident to open a new bank account in the United Kingdom. There's no law against it, however most banks simply don't want the business. Unless amounts are large. There may be exceptions.

2. At the same time, those who have an existing account can usally keep it when leaving the U.K. Most banks will not force closure of the account simply because the customer is no longer U.K. resident. However, there may be exceptions. It may also depend on customer track record, how the account is operated, etc.

3. Anecdotally, there is a greater risk of forced closure from an "online" bank or a building society, rather than one of the major banks,

4. ISAs, etc, you can't make any new contributions once non-U.K. resident but the bank does not have to force closure of the account. NOTE. Your ISA is not necessarily "tax free" once you are resident in another country.

5. Even if you keep your account, your bank may not be willing to pay interest gross. Most don't accept the R105 form any longer, some may still accept an R85. http://www.hmrc.gov.uk/incometax/tax-free-interest.htm
If tax is deducted and you have no U.K. tax liability you may have to reclaim from HMRC, or (subject to tax treaty etc.) claim a credit on your foreign income tax return.

6. You should expect to have to declare any income as taxable in your new country of residence (unless that country only taxes local income, not many like that). You may also have to report the accounts to foreign tax authorities.

Perhaps consider: opening some new accounts with different banks before you leave the United Kingdom. Just in case you do encounter a forced closure situation.

Mitzyboy

You need a tax advisor, not Barclays
They wont necessarily know what the tax laws in Italy are. In Spain for instance you have to do a complete asset declaration when resident there, and the fines for not declaring are terrible.
You usually have to de register for tax in the Uk to achieve zero tax status there, and they will probably want to see evidence that you are paying tax elsewhere. There is a double taxation treaty between the UK and Italy, which ensures you dont end up paying twice

modicasa

Nationwide simply asks you if you have an overseas address they can use....

PSG2014

How does one change residency from Italian back to UK ? Do you have to cancel residency in Italy first (how is that done ?!) and then take residency in the UK (how is that done?)

I've never thought about the return journey ?!

Mitzyboy

You're a UK citizen. Done properly, yes you should cancel your residency in Italy. It doesn't effect what happens in the UK though, so you simply go back to the UK, register with your local doctor, inform the tax authorities etc etc. If you are taking an Italian registered car back to the UK, you should register it as exported in Italy, so that you can produce the relevant documents to DVLA to re register on Brit plates

I did all this (from Spain) a while back

PSG2014

Good to hear this Mitzyboy..........

I assumed it would be a bit more of a challenge !

Thanks,

P

Mitzyboy

The challenge bit will be cancelling your residency in Italy, I'd guess

Lorna at Vicenza

First - go to the ufficio anagrafe in your comune and tell them you're moving back to the UK and ask them to take you off the register.

Don't forget to go to the treasury office as well and make sure you cancel rubbish tax bills and other kinds like the house taxes etc.

Tell Enel and or whoever you use for your gas and electricity.

Unless of course you are keeping a house here?