Overseas UK citizen - NISA
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slw256
Posts: 2 Newbie
Hi folks,
I'm a UK citizen currently working overseas and not paying UK tax on my income. I have been working overseas for at least a full UK tax year, I am in the UK for less than 90 days p.a. and I am not required to pay local tax in my place of work.
However, I also have two UK pensions on which I do pay UK tax. My question is: can I purchase a UK NISA?
If it is relevant - my place of domicile is the UK as I intent to return and live in the UK in the foreseeable future.
Thanks in advance.
I'm a UK citizen currently working overseas and not paying UK tax on my income. I have been working overseas for at least a full UK tax year, I am in the UK for less than 90 days p.a. and I am not required to pay local tax in my place of work.
However, I also have two UK pensions on which I do pay UK tax. My question is: can I purchase a UK NISA?
If it is relevant - my place of domicile is the UK as I intent to return and live in the UK in the foreseeable future.
Thanks in advance.
0
Comments
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can I purchase a UK NISA?
No.
To be eligible to purchase an ISA/NISA you must either be a UK resident or non resident crown employee and you must be liable for UK income tax.0 -
Thanks Shaun, but what is the definition of a UK resident?
Is it someone who is permanently resident in the UK without any days absence (holidays?), or are there a number of permitted days out of the UK?
I find this very confusing and can't find an answer on the HMRC website.0 -
Presumably, given you are not paying UK tax on your salary, this is because you left the UK indefinitely to take up employment (no fixed return date), are out of the country for over a full UK tax year, are keeping the days 'back home' to below the threshold which would have caused you to keep your UK residence (you mentioned below 90 days in your first post), etc.
That would have been the basis on which you lost your residency and avoided paying tax on your income from overseas job, salary, investments etc.
The HMRC statutory residence test is here http://www.hmrc.gov.uk/international/rdr3.pdf
If you would prefer to be UK resident I am sure they would be happy to have you, and you can go back to paying UK tax on your worldwide income from all sources rather than just paying tax on your UK pension income. As a proper UK resident taxpayer you could then put some of your money in tax-efficient accounts. If you are not a UK resident taxpayer, they consider you do not need access to their tax-efficient accounts.0 -
Thanks Shaun, but what is the definition of a UK resident?
Is it someone who is permanently resident in the UK without any days absence (holidays?), or are there a number of permitted days out of the UK?
I find this very confusing and can't find an answer on the HMRC website.
It's whether you're resident under the statutory residence tests.
I am out the UK for around half the year, but am still resident (bit not domiciled) in the UK.
If you google the SRT's, you should be Abe to work out from that.💙💛 💔0
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