daveoggy

Can I send money back to the uk for investment in a cash isa whilst in the states on an L1B?

I mean physically of course I can but legally and tax wise where would I stand?

henryh

I believe you are not allowed to contribute to an ISA while not "resident and ordinarily resident" in the UK. However, you can keep an existing ISA. (UK law)

If you have an existing ISA, you are supposed to report it on your US tax return and pay tax on the interest. (US law)

chrisandjulie

How much tax do you pay on it? Thats ridiculous all my past savings in my ISA and inheritance money taxed from the moment i fill out my tax return?! Even if i dont intend to take the money to the states?

henryh

You're not taxed on the balance of the account, just on the interest that it earned that year. The percentage depends on your tax bracket.

daveoggy

Sounds like it's a headache not worth having then. Are there similar tax free saving products in the US that I'd be eligible for?

I have a pension scheme in the US (which the UK company doesn't have!) and I'm pretty sure that is tax exempt, anything else I can stick money into?

Ozzidoc

IRA Roth