Re: Maintaining UK bank accounts and Credit cards
 

Actually under English law (and Scottish, as far as I know), domicile is a unitary concept. You cannot hold a domicile in two jurisdictions simultaneously.

If you hold a lot of real estate in the UK then domicile may not matter - UK based assets may fall into the Inheritance Tax net anyway. And if you don't have much UK real property, then how are the Inland Revenue even going to know about your estate, let alone try to collect estate tax in another country. UK tax officials cannot demand that the authorities of another country or territory collect tax for them.

I would think that moving bank accounts to the Isle of Man would be a better option than taking them out of joint names.

Re: Maintaining UK bank accounts and Credit cards
 

Apologies for the mis-information - you are quite right. Having read the IR web explanation it seems that while domicile is unitary, the proof of domicile is more vague. Living somewhere doesn't prove domicile - you have to show that you have done so permanently by breaking ties with your domicile of origin (or its successor). I think my friend must have been concerned that maintaining bank and other accounts in the UK provided an argument that he planned to return and so hadn't given up domicile.

As to how the IR finds out - I don't know, are there reporting requirements on banks and/or solicitors acting as executors? How does the IR usually find out. Just because they can't enforce collection in the US doesn't make me that comfortable if it means an effective ban from the UK for my heirs.

Anyway, I've adequately demonstrated I don't know enough about this to provide advice - if anyone cares ask someone who is an expert in it.

Re: Maintaining UK bank accounts and Credit cards
 

Not in foreign jurisdictions. They might have to report to the local authorites, but the Inland Revenue cannot force foreign accountants and lawyer to report anything to them. Even on the offchance that such foreign accountant/lawyer knew anything about

Inheritance Tax is levied on the estate as far as I know, not the beneficiaries. It's an *estate* tax rather than a *capital acquisitions tax*. Some countries do have the latter tax, but that's not the way United Kingdom legislation works.

As you say - get professional advice if sums are important. But do discuss with such adviser the points noted above : how will Inland Revenue even know about a foreign estate, and even if they do find out, what effective right have they to collect tax in a foreign jurisdiction. It may be that the maximum effective Inheritance Tax liability of the estate is limited to the total of UK-located net assets, and in the case of bank accounts, these can be minimised by moving to the Isle of Man.

Also note - tax is one reason for arranging one's finances in a particular way, but not the *only* reason.

Re: Maintaining UK bank accounts and Credit cards
 

I assume you are all talking about current accounts. I have a few savings accounts in the UK, and some require you to be a UK resident which I doubt would send out statements to the US etc. I'd be interested in hearing if anyone does have savings accounts and have not had a problem with this.

cheers

Re: Maintaining UK bank accounts and Credit cards
 

I kept all my addresses in the UK but I dont see any reason why the savings accounts would be different. The VAST majority of current accounts require you to be resident in the UK at least when open the accounts

Re: Maintaining UK bank accounts and Credit cards
 

I keep open UK bank accounts with HSBC and Cahoot, Visa card, american express and a cash ISA. Both VISA and Amex are aware I am abroad, the HSBC, ISA and Cahoot don't.

Class 2 contributions ... not worth the bother and I read somewhere you can't make them anyway if you are a foreign resident. There were moves afoot to bring the minimum years for qualification to a UK pension to 35, and the Dept of Work and Pensions advised me before I left NOT to make a top up payment as I was 5 years short of a full pension, because it might well be a waste of money.

Re: Maintaining UK bank accounts and Credit cards
 

You can make contributions, but only if you've been a resident and working for 3 years previous before you moved abroad....but if your close to making a full pension then it might be a waste of time.

Re: Maintaining UK bank accounts and Credit cards
 

Yes especially if the new law comes into force

Re: Maintaining UK bank accounts and Credit cards
 

Most UK banks have no problem allowing a customer to keep accounts when moving out of the UK. That includes current accounts, savings accounts and credit cards.

Exceptions seem to be the "internet" banks like "Egg", "Smile" etc - people have reported hassles here. But not with High Street banks.

Some banks will de-activate an account that becomes "dormant" but that varies from one institution to another.

Re: Maintaining UK bank accounts and Credit cards
 

Same here, never had a problem. I get my statements sent to NY every month.

Re: Maintaining UK bank accounts and Credit cards
 

One thing I did have a problem with was putting my US hubby on my UK bank account, one that I have had most of my life (the account that is!:p )
After Sept 11 Lloyds/TSB changed the way they did business a little and would not allow a foreign national to have joint ownership of a current account. I faught tooth and nail to get them to waive this as I have been an account holder with them for ever but they would not budge.
The only thing they would do for us was put his name on the account allowing him to physically go into a branch and take money out with proof of ID, but he is not allowed to have any type of card in his name and he is not allowed to do any transactions over the phone etc.

Re: Maintaining UK bank accounts and Credit cards
 

I did that sucessfully with first direct ....
but it took a bit of underhand manourvering

Re: Maintaining UK bank accounts and Credit cards
 

That sounds extremely strange. Lots of "foreign nationals" living in the UK maintain bank accounts there. Do you mean a "foreign resident"?

Re: Maintaining UK bank accounts and Credit cards
 

An American citizen

Re: Maintaining UK bank accounts and Credit cards
 

In that case you should complain to Head Office (it may be an over-zealous branch officer) or alternatively find another bank. There is definitely no bar on a foreign citizen holding a UK bank account.

How do you think other immigrants to the UK manage? Or how the City of London manages to survive?

A last resort fall-back is to open an account at a bank branch in the Channel Islands and Isle of Man. They are used to dealing with people with overseas links.