To cash in ISA or not?

SimoneT

Hi all,

We currently have ISA's with Nationwide, one is a Maxi the other a Mini; both have been performing not too badly (i.e. we have made money over the past 8 years). However, with a possible recession looming we are thinking of cashing these in as we are emmigrating to Canada sometime next year and don't want to loose our money.

Question is: Is it wise to cash these in now given the economic climat and if so what to do with the cash (high interest account?).

Any advise greatly appreciated.

Thanks,
Simone

Oblivion

Hi Simone

According to the HMRC rules on ISAs, you are not obliged to close them when you move abroad ...

"Moving abroad
You can only subscribe to an ISA if you are resident and ordinarily resident in the UK for tax purposes. Overseas residents are not eligible to apply for an ISA. If you are unsure about this, call our Centre for Non-Residents on

• 0845 070 0040 (UK) or
• 44 151 210 2222 (from abroad).

If you cease to be a UK resident while you already have an ISA open, you will no longer be able to put money into it. However, you will still be able to keep your ISA open and you will still be entitled to the tax benefits on investments held in the ISA. If you then return to be UK resident and ordinarily resident, you can start putting money in again. "

So your first decision is whether to close them at all and lose those tax-free vessels, and that will depend on the likelihood of you ever returning to the UK. If you do decide to cash them in, then there are plenty of instant access savings accounts around with the on-line ones usually offering the best rates.

Dave.

SimoneT

Thanks Dave. We are intending to close them completely as we have absoultely no intention of ever coming back the UK:). My question was basically to do with the increasing possibility of a recession and should we cash them in now rather than in 8 months time when we move?

dunstonh

The tax free status of the ISA only applies to UK residents. Whilst the UK wont tax the ISA, you may find that Canada will.

SimoneT

Thanks dunstonh, another reason to cash it in, apart from the fact that we will be using the money to furnish our new house over there

Oblivion

SimoneT wrote: »

Thanks Dave. We are intending to close them completely as we have absoultely no intention of ever coming back the UK:). My question was basically to do with the increasing possibility of a recession and should we cash them in now rather than in 8 months time when we move?

I'm sorry but I deliberately avoided that bit of your OP because the batteries in my crystal ball have run out :rolleyes:

It will take a braver man than me to predict just where this troubled economy will be in 8 months time, but perhaps someone out there will take a punt?

Dave.