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ISA's and tax declarations

ISA's and tax declarations

Old Aug 25th 2015, 9:14 am
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Default ISA's and tax declarations

In another thread Fred James said:

Originally Posted by Fred James
...
If you had more than €50000 in total in a foreign account or accounts on 31st December 2014 you should have declared it before the end of March this year.

As I said earlier, if you were a resident at the time of the gift, then gift tax could be due but cash gifts are rarely declared but legally they are subject to gift tax. The fact that it is tax free in the UK is irrelevant.
My question is do you have to declare money tied up in a UK ISA? It's sitting there tax free in the UK so do you have to declare it (and therefore be taxed on it) in Spain?

Last edited by Dizzydee; Aug 25th 2015 at 9:15 am. Reason: I can't spell "Fred".
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Old Aug 25th 2015, 9:24 am
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Default Re: ISA's and tax declarations

UK ISAs are not tax free in Spain and the interest must be declared on your Spanish tax declaration and it will be taxed..

If they exceed €50k they must also be declared on the Form 720 asset declaration.
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Old Aug 25th 2015, 9:34 am
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Default Re: ISA's and tax declarations

So you declare the annual interest but not the sum locked in the ISA itself? (assuming the sum is less than 50K)
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Old Aug 25th 2015, 6:04 pm
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Default Re: ISA's and tax declarations

Originally Posted by Dizzydee
So you declare the annual interest but not the sum locked in the ISA itself? (assuming the sum is less than 50K)
To clarify;

You MUST declare all income - including interest (which is income after all) for tax purposes in Spain.

You must declare all assets exceeding 50,000€ in each asset class on form 720.
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Old Aug 25th 2015, 7:57 pm
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Default Re: ISA's and tax declarations

That didn't quite clarify sorry.

You don't declare sums in ISA less than 50K (though you would of course declare the annual interest on those ISAs). So having 52k in ISAs would see you declare just 2k?

And if you had 251K in savings accounts you would only declare 201k.

Last edited by Dizzydee; Aug 25th 2015 at 7:58 pm. Reason: Got my 'clarify' and 'declare' muddled.
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Old Aug 25th 2015, 8:36 pm
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Default Re: ISA's and tax declarations

Originally Posted by Dizzydee
That didn't quite clarify sorry.

You don't declare sums in ISA less than 50K (though you would of course declare the annual interest on those ISAs). So having 52k in ISAs would see you declare just 2k?

And if you had 251K in savings accounts you would only declare 201k.
No you would declare the entire amount on the assets declaration. If any assets in each of the 3 categories of savings, investments or property add up to 50 k euros, you declare them. Remember the exchange rate, which can tip you over the limit
Loads of info on this online, try Blevins Franks website
On the tax return you would declare all interest
Plus you must declare all interest on investments,winnings, lump sums.
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Old Aug 28th 2015, 1:04 am
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Default Re: ISA's and tax declarations

Can't understand this
I checked up with UK government. they said
" If you are not UK resident then you are not allowed by law to have a UK ISA."
Friend of mine got residency and immediately her bank cancelled ISA and put it into an ordinary savings account.
Anyone who is resident in Spain and holding a UK ISA is breaking the law.
Well that is what they told me.
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Old Aug 28th 2015, 1:07 am
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Default Re: ISA's and tax declarations

Originally Posted by teuchterpete
Can't understand this
I checked up with UK government. they said
" If you are not UK resident then you are not allowed by law to have a UK ISA."
Friend of mine got residency and immediately her bank cancelled ISA and put it into an ordinary savings account.
Anyone who is resident in Spain and holding a UK ISA is breaking the law.
Well that is what they told me.
Pete
You are allowed to keep your ISA if a resident in Spain, but you cannot add to it.
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Old Aug 28th 2015, 1:29 am
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Default Re: ISA's and tax declarations

Originally Posted by Neptuno
You are allowed to keep your ISA if a resident in Spain, but you cannot add to it.
That would explain a lot. They did not tell me that.
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Old Aug 28th 2015, 1:52 am
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Default Re: ISA's and tax declarations

That's what I have found in various information resources. You can keep existing ISAs but you cannot add funds to them or open new ISAs.

Can't see why they would close one and move it to a savings account
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Old Aug 28th 2015, 3:59 am
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Default Re: ISA's and tax declarations

Originally Posted by Neptuno
You are allowed to keep your ISA if a resident in Spain, but you cannot add to it.
Yes that is how I understand and was told that by my bank. Reason being you were UK resident when you paid the money in so entitled, once resident elsewhere no longer UK resident so not entitled to any further ISA allowance. I am still part time so still not Spanish resident , however should I become so as my pensions apart from state pension are Government pensions I will always be a UK tax payer but not entitled to any tax free perk. I know like all things in life fairness doesn't come into it. Reality these days often for cash ISA,s there is little gain from holding them you may get a better rate after tax from a savings account or bond.
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