Transferring an ISA while living abroad

newsmonkey · 15 January 2010 at 9:00PM

I understand that once you stop being a UK tax resident, you're not allowed to add funds to an ISA. However you can keep existing ones open, untouched.

But can you make transfer? Is it theoretically possible to open a new ISA and transfer in a previous year's allowance? It's old ISA money (no new additions being made) -- but is it playing by the rules?

Or once you leave the country, are you stuck with the ISA provider you had when you left? (it was a Northern Rock 6% fixed, sadly now a 1.1% bog-standard cash ISA).

Anyone done it?

Aegis · 15 January 2010 at 9:08PM

I've just shifted two such ISAs for a client living overseas, so it's possible. However, some banks probably won't want overseas customers for security reasons, so you might have difficulty.

jamesd · 16 January 2010 at 5:13AM

UK law permits you to transfer to a new ISA. The HMRC sample transfer application forms (page 110) instruct you to strike out the declaration that you're UK resident if you don't intend to subscribe (pay in new contributions, not transferred money) during the current tax year.

gld73 · 18 January 2010 at 12:54AM

Thanks, that's useful - I've just discovered that my A&L ISA earned about 0.25% interest last year so want to change it, but was worried about the declaration on the transfer form regarding UK resident status. As I've just had a letter from HMRC saying I'm non-resident (12 months after I sent my P85!), I didn't want to do anything to screw that up! It's good to know that if I'm not adding any more money, I can still move it to a better rate.

Hopefully when I'm back next Christmas, I'll remember to check the rates, to save ending up with another pitiful excuse for interest..!

Transferring an ISA while living abroad

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