mattw89

Might be a very daft question this.

But currently I live with parents, moving to the states in a few weeks. I don't receive any post from my banks, deal with it all electronically.

I wondered if it is best keeping my address on file with the banks as the UK address of my parents. Or if I should change it to my apartment in Seattle.

The reason I ask is i wasn't sure if it would alter anything in terms of my ISA contributions as a non-resident/any of my account benefits/or just anything i'm not sure of and could regret at a later date.

It might just be pure speculation but figured it was better to ask and be safe then not and regret.

It just sparked a thought after being told if I am opening a new ISA do it now because once I change address to the USA you cannot open an ISA as a non-resident (assuming regular contributions are fine though...)

sir_eccles

Some banks get upset when you give them an overseas address, it may be easier to leave it as your parents address. Don't forget the one important thing they will mail to you, a new bank card every few years.

I would double check the small print on the ISA, my understanding is that you can't open a new one and you can't make contributions.

There may also be tax implications on your US return if the aggregate balance is over $10k.

dunroving

Ditto - if you have a UK address you can use, then use it. Some banks these days will close your account if you are not a UK resident (seems ridiculous, as many people who move overseas still have financial business to deal with in the UK).

Also, ISA information is correct - you can keep, maintain, switch existing ISAs if you are overseas, but you can't open a new one or make new contributions to an existing ISA. You might be able to get away with opening a new one if the Inland Revenue doesn't know you are overseas, but you'd be breaking the law to do so.

Orangepants

I left my accounts/CC at my parents address and gave Mum power of attorney to write checks and transfer between accounts to a certain limit. I also contribute to an ISA yearly but have never specifically asked if this was allowed - now I know it is! Thanks dunroving.

nun

......and more on the ISA. Any interest and gains will be taxable by the IRS once you become a US tax payer.

It's also important to know how your ISA money is invested. If it's a stocks and shares ISA you will have complicated US tax forms to file as it will come under Passive Foreign Investment Company (PFIC) rules.

If you have more than $10k in your accounts in the UK you will have to declare them to the US Treasury on an FBAR form. This is a pain, and failure to do it has some serious fines attached.

If you plan to be in the US for a few years my advice would be to cash in your ISA and move the money to the US. Also make sure you apply to pay voluntary NI payments while you're abroad. If you are working for a US employer you probably qualify to pay Class 2 which are very inexpensive.

http://www.direct.gov.uk/en/MoneyTax...ngup/DG_190066

nun

You cannot contribute to an ISA if you are not resident in the UK for tax purposes. So it sounds as if you are making
illegal contributions. Also gains and interest on your ISA may well be taxable if you live outside the UK. If you are US tax resident they are definitely taxable by the IRS.

http://www.shelteroffshore.com/index..._living_abroad

mattw89

The original plan was for me to take all my accounts, cash in the ISA and everything, and move it over with me to the USA, approx 20k$.

However when reading through the forum I found the difficulties or cost in transferring money to and from.

I have a couple of direct debits that I want to keep paying out. One is an F&C investment trust, it's a long term investment i wanted to start and so if i was to cash it in I will lose alot of money because it hasn't had enough time to reap the dividend as it is higher risk. I wanted my monthly contribution to continue (its only about 80$ a month but its an idea I had about just a small bit every month and forget about it, and I've had for 5 years already now and never miss that money).

Of course the other major thing is student loans. Which I'll be paying about 200 pound every month, owing a total of 20000 pounds.

Therefore I thought it might have been best for me to keep a UK account and keep all my money there so it can just be used for direct debit payments and I'll do another lump sum transfer once it depreciates to 0.

(also would be handy for ordering presents in UK etc.)

Unless anyone else has other suggestions on the best practice for me. I just want to avoid XE and paypal charges as much as possible.

I may just move my ISA then directly in to a savings account if I am going to have start doing all these forms and what not.

Orangepants

OOps - I have been living in the Caymans for 14 years so never gave much thought to tax! Just recently moved to the US so for 2011 tax year I'll have to get things cleared up with a tax adviser. Paying no tax is so much better! Thanks for the link.

nun

If you have regular payments to make it's probably best to keep the UK account. Make sure you know how much you have in the UK so you can file FBARs if it ever goes above $10k. The investment trust sounds as if it will cause a few complications with US tax so I'd research that fully.

As you'll be loosing any tax advantage of the ISA when you come to US it makes sense to cash it in and have the cash available to invest or spend during your move

rallybug

Post Office international transfers cost nothing to send bank to bank If the bank at the other end charges, send the Post Office a copy of your statement and they'll refund the charges to you.

mattw89

I've heard about this, in fact so much so I created an account last year I have the details somewhere. Have you had much dealing with this, it'd be nice to know because it's something that I don't see many people talk about on the forum in threads or seem a popular choice.

My understanding from what you say is that I could just have a standing order set up to the post office say of 100 pound from my US bank, then transfer that to my UK bank, which can then pay the SLC DD of 100 pound (first direct). Costing me nothing more than 100 pound.

Even if it can't be setup automated, I could at least just do it myself manually each month.

But if this is all correct, many of my problems are solved immediately and I don't need to leave 10k in my UK account...on all the threads i researched on this matter though it always ended up recommending paypal or xe.com which incurs charges.

That's what confused me and made me dismiss the post office thing :/

meauxna

matt, aren't you only coming over on a temporary visa? Maybe you should leave the long term stuff in the UK?

tonrob

If you're transferring money look at total cost (including exchange rate) rather than making your sole goal to avoid any fixed-rate fees. For non-urgent transfers I've bought a bankers draft from xe and had them mail it directly to my UK bank branch - this has been very cost effective.

Also it might be handy if we name which banks have a problem with providing a non-UK address. I'm with HSBC in the UK and they've been absolutely fine with my US address.

Bob

The address, ask the bank...some are ok, some aren't. HSBC are fine, Barclays are not.

Transfer the money, xe.com etc are probably the best bet to reducing costs and getting best rates.

Jerseygirl

I'm with the Nat West and Halifax...I changed my address 15 years ago and have never had a problem. Everything is sent to my US address including new cards.