Porth

Ahead of returning to Spain in February and organizing our finances here in the UK we would wish to place funds in ISAS here and where whilst the interest rte is nominal it is at least tax free.

Once resident in Spain obviously we cannot set up ISAS.

Is the interest please taxable in Spain? If so what is the point when Madrid can take whatever your marginal tax rate is from the interest?

best wishes.

Fred James

UK ISAs are taxable in Spain if you are tax resident in Spain.

missile

There is no point for a non UK tax payer.

You could easily better the best ISA rate with one of the interest paying current accounts available from several UK banks.

Porth

Good morning missile. At the moment with fixed rate Isas such as The Coventry Building Society there is nothing between that and High Street lenders such as dare (absolutely dare) say Santander which has a horrific reputation here in the UK. It is obtaining customer base and indeed capital injections by higher than others interest rates. When it gets some liquidity the rates drop.

Having lived in France for more years than I care to remember the problem for High Street Lenders simply one of HMRC and its onerous rules as to non resident UK guys. They deduct tax at source. I am still awaiting repayments dating back three years ago from the revenue.

Imagine then moving funds off shore to Jersey Guernsey or the Isle of Man.

It is not a huge amount of money and whilst not our only source of income you would have to try to make it work for you

missile

Hi Porth,

There are better options than 3% at Santander. One could get 5% at TSB and 4% at LLoyds to name but two.

I believe the best rate currently available for an ISA from Coventry BS is 2.6%?

cricketman

You can't open a UK current account if you are non-resident in the UK

You can lie if you like but that would be fraud

Fredbargate

Would you care to provide links?

missile

......... just go to the bank websites

Fredbargate

I have but cannot find those rates except a one year monthly saver Lloyds which drops dramatically after the first year
TSB 2% or less unless an ISA or Junior Saver

Porth

Missile I too would love to find these rates. With the BoE suggesting that current rates will remain where they are until next summer you are not getting the rates you suggest for your money.

missile

Well ........ I certainly get 5% on my TSB Classic Plus current accounts.

For those too lazy to look for themselves, here are the links >
Current accounts with TSB - TSB Bank
http://www.lloydsbank.com/current-ac...lub-lloyds.asp
http://www.santander.co.uk/uk/curren...urrent-account

Fredbargate

On balances up to £2000

Porth

Dear Missile I posted on the basis of taxation - this has developed into 'too lazy' not impressed young man.

A current problem with respect sat behind a screen and do not think before pressing a button.

Thanks for your input and I will now ring TSB and if as you say 5% then fine and thanks if not please be prepared.

Also this account is underpinned by a UK or Spanish address?

cricketman

That's up to 83p per month Fred, no laughing matter

Seriously though, are you all UK resident or are you all lying? There are hardly any UK accounts that you can apply for if you are resident in Spain

Fredbargate

I believe it is no secret that I am not a resident of Spain or the UK.

However I do get 5% intersest on some of my accounts which give me an income to live comfortably on, I also have other investments earning a range of interests.