Abroad - best place for money

simply_red

I am going abroad for a couple of years, maybe for good. Where is the best place to save money from a house sale? I'm aware of good accounts here, but many require you to be residing in UK and take 20% tax.

occamsrazor

Keep your existing UK accounts. Open any new ones that seem attractive to you BEFORE you leave the UK, as opening UK accounts afterwards will be near to impossible. Once opened as a UK resident, with most (or at least some) you'll be able to keep them once you become non-resident. Once you leave the country register to receive gross interest with no tax due to your non-residency.

simply_red

One bank stated i could keep the account as along as i had a uk address, the other said i was unable to keep it open if no longer a resident. Thought i may have to get an international account. Does anyone know much about these?

KingL

Not a bank, but online trading site Selftrade (then Comdirect) did an exercise a few years back where they sent out something to your postal address and you had to sign and send it back. This was specifically to prove that you were (still) resident in the UK, they said it was something imposed on them in order to comply with money laundering regulations.


Someone* I applied for an online savings account with recently had a warning message on the online account that the account must not be operated from outside the UK. It specifically said you could not access its internet account from overseas (even if you were just away on holiday) and that they had software in place to prevent you from doing so. None of this was mentioned in any of the marketing/application blurb, so it's worth asking about this upfront before you go through the hassle of opening account(s).

Don't know much about international accounts. HSBC have one. I think it's relatively expensive to operate and has lots of whizzy financial features that you will never use




* I forget who this was. I thought it was Birmingham Midshires, but I can't find it on their site now and I just called them and they say it is not the case. Must've been someone else.

simply_red

Thanks. will check on that when opening. Your right it is B. Midshires that do not permit online services from overseas. I'm with them and have to close it before I go. Will check out international accounts. Anyone know a good one?

runciblespoon

Some 'International' accounts are for people who've just arrived in the UK from Poland/China/etc and have no credit history. They're expensive and to be avoided unless you have absolutely no choice.

If you just want savings accounts what you might make use of are offshore accounts. These are accounts based in tax havens, which are usually small islands/countries where they expect most of their customers to reside abroad. They're usually quite happy dealing with you if you live anywhere in the world (with a few exceptions, eg parts of Africa). Examples close to home are Guernsey, Jersey and the Isle of Man.

Offshore accounts aren't necessarily tax free - but roughly you shouldn't end up paying more tax than you would in an onshore account (it may require the filling in of tax returns etc to achieve this). In most offshore places you get reduced or no depositor protection. Exceptions are Irish banks' offshore branches (as of yesterday, to be confirmed) and Northern Rock Guernsey.

Offshore account search:
http://www.moneyfacts.co.uk/offshore/default.aspx

Most Irish banks are also used to dealing with non-residents if you want an onshore account in Ireland, though most of their accounts are denominated in Euro. You don't pay DIRT (interest tax) on these accounts (but if you live in the UK must declare this to HMRC, so maybe the same rules apply where you will end up living)

simply_red

Thanks I will look into that. Someone mentioned that I may be able to fill out a tax form to be excempt if I am not receiving any income in the UK, and this would enable me to leave the money in UK savings acounts.
Does anyone know if this is the case?