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UK Bank Accounts / ISA and Working Abroad

UK Bank Accounts / ISA and Working Abroad

Old Feb 24th 2013, 8:25 pm
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Default UK Bank Accounts / ISA and Working Abroad

Hi all

I have searched the forum but would really appreciate some input

Assuming I am working full time abroad for a full tax year and have fulfilled current obligations to become not resident for uk tax purposes, what is the position regards retaining your UK bank accounts and ISA ? Is this deemed acceptable? Or a 'contributing factor'? Or will this be seen to indicate you should not be 'not resident' and increase your chance of attracting UK income tax?

Am I right to believe you cannot pay into an ISA if you are not resident? If so, can you retain the ISA but not pay into it? If you can retain it, will this continue to make the 3% interest on the balance at the time you left the UK for as long as you hold it while living abroad?

What about retaining your UK credit cards? Is this OK or not so acceptable in the eyes of HMRC in terms of 'not resident'?

Finally, if you fulfil the criteria for 'not resident' for UK income tax , what are the tax implications of sending money (income from overseas employment) back to my bank account for holding purposes or to take advantage of exchange rates? I have read some people open an offshore account but then I would still have to transfer the money back to the UK at some point in the future if I ever decide to return

Ideally I would like to hold onto my UK bank accounts and credit cards as I have had them many years with the same bank and will likely need to use them in the first few months of being abroad plus they are all online so easy to manage.

Thanks for reading
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Old Feb 25th 2013, 4:09 am
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Default Re: UK Bank Accounts / ISA and Working Abroad

This might not be of any use but im a non resident and still keep an isa at home. Havent put any money into it but its still sitting there. I cant see how they can stop me from having one

I also keep my UK account back home just in case. Its got a small amount of "get out of the shit" money incase for whatever reason my local banking gets frozen

I also bank offshore which gives me the best piece of mind as i feel thats the account im most in control of
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Old Feb 25th 2013, 6:54 am
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Default Re: UK Bank Accounts / ISA and Working Abroad

Originally Posted by Graduate QS
Hi all

I have searched the forum but would really appreciate some input

Assuming I am working full time abroad for a full tax year and have fulfilled current obligations to become not resident for uk tax purposes, what is the position regards retaining your UK bank accounts and ISA ? Is this deemed acceptable? Or a 'contributing factor'? Or will this be seen to indicate you should not be 'not resident' and increase your chance of attracting UK income tax?

Am I right to believe you cannot pay into an ISA if you are not resident? If so, can you retain the ISA but not pay into it? If you can retain it, will this continue to make the 3% interest on the balance at the time you left the UK for as long as you hold it while living abroad?

What about retaining your UK credit cards? Is this OK or not so acceptable in the eyes of HMRC in terms of 'not resident'?

Finally, if you fulfil the criteria for 'not resident' for UK income tax , what are the tax implications of sending money (income from overseas employment) back to my bank account for holding purposes or to take advantage of exchange rates? I have read some people open an offshore account but then I would still have to transfer the money back to the UK at some point in the future if I ever decide to return

Ideally I would like to hold onto my UK bank accounts and credit cards as I have had them many years with the same bank and will likely need to use them in the first few months of being abroad plus they are all online so easy to manage.

Thanks for reading
If you are UK non-resident you cannot make any further ISA contributions but may retain any existing plans.

You can remit overseas income to the UK and assuming you are UK non-resident for tax purposes there will be no income tax liablity.

You should keep a UK bank account open, especially of you plan to return. It's up to the bank to permit you to retain a credit card. These are not 'connecting factors".

(You'll find articles covering all these issues on my financial blog - link in my signature.)
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Old Feb 25th 2013, 7:14 am
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Default Re: UK Bank Accounts / ISA and Working Abroad

Thank you all very much for your help

Meow, I will check your blog, thanks
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Old Feb 25th 2013, 6:54 pm
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Default Re: UK Bank Accounts / ISA and Working Abroad

For the win, a new expat can open a UK SIPP and pay in £2,880 this tax year and for the next 5 tax years, and HMRC will top it up with £720 each year. Tied up until age 55, but you can't beat free money.
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