What happens to a Lifetime ISA whilst abroad?

I am a UK resident, currently interested in investing in either a Lifetime ISA or a Help to Buy ISA. I'm a little apprehensive though as I don't really understand how the Lifetime ISA will be treated if I move abroad say for 2 years for a postdoctoral position, but with the intent to return to the UK. Would the Lifetime ISA be closed and contributions by the government lost? If this is the case what are other options for someone whose work may require them to move abroad, with the intent of returning? This is additionally important to me because I am still not able to contribute to a workplace pension (any advice on this will also be appreciated). It seems I have pretty poor options for saving.

Comments

  • eskbanker
    eskbanker Posts: 30,225
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    As per https://www.gov.uk/individual-savings-accounts/if-you-move-abroad-or-die, you can keep an ISA open when abroad but can't pay into it while non-resident.

    I doubt anyone can advise on not being able to contribute to a workplace pension unless you give more information as to why you can't!
  • dunstonh
    dunstonh Posts: 115,904
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    In addition to the above, the ISA tax wrapper is UK specific. If you become resident for tax purposes in another country, then they wont recognise the tax free status of the ISA. It will be subject to local taxation and any tax treaties between that country and the UK.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • If you move abroad you'll be able to keep the ISA, but you won't be able to make contributions and you might have to pay local tax on any gains and dividends. Your best option is to look at saving locally and make sure you understand the local tax laws and the tax treaty in place with the UK.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • EdSwippet
    EdSwippet Posts: 1,581
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    If you move abroad you'll be able to keep the ISA ...
    Not guaranteed when 'abroad' is the US. From YouInvest Terms & Conditions (other platforms may have similar restrictions):
    11. Additional ISA, Lifetime ISA and Junior ISA terms
    ...
    11.2 You must inform Us immediately if you become a USA citizen or a USA resident for tax purposes. We may close Your ISA and Lifetime ISA if You inform Us that You have become a USA citizen or a USA resident for tax purposes and We may close a Junior ISA for a Child, if You inform Us that the Child has become a USA citizen or a USA resident for tax purposes.
  • Actually you can move abroad and still invest in an ISA if you live in a British territory or has a BFPO address.
  • AlanP_2
    AlanP_2 Posts: 3,248
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    eskbanker wrote: »

    I doubt anyone can advise on not being able to contribute to a workplace pension unless you give more information as to why you can't!

    It sounds to me as if the OP is currently doing a PhD so no employer.

    My son is in a similar position and gets paid a Stipend as opposed to a salary.
  • eskbanker
    eskbanker Posts: 30,225
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    AlanP wrote: »
    eskbanker wrote: »
    I doubt anyone can advise on not being able to contribute to a workplace pension unless you give more information as to why you can't!
    It sounds to me as if the OP is currently doing a PhD so no employer.
    Plausible, although she was asking about "options for someone whose work may require them to move abroad", but that could all be hypothetical I suppose - unless OP returns to clarify we'll never know!
  • AlanP_2
    AlanP_2 Posts: 3,248
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    I think that if doing a Postdoc you do become an employee, at least as far as HMRC are concerned anyway.

    As you say clarification from OP.
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