icesave ISA conundrum

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I maxed out my cash ISA contribution for this tax year some time before I left the UK in an Icesave ISA.

Right now, for the forseeable future, i am living and working overseas in North America where I believe I shall be taxed on all worldwide income.

Obviously were i still in the UK i would, once I got my cash back from Icesave, I would have opened a new ISA elsewhere and transferred these funds into it rather than letting this cash sit in my current account.

As I am not there now, I am wondering where I stand - is it pointless and impossible for a non-resident to open an ISA?

In these early days of my research for another solution, I found that so many offshore savings products with any half-decent interest rates have many conditions and penalties when cash is withdrawn. Yet, savings account in the UK assume UK residency, asking employer info etc.

I am looking for instant access or a short-notice account and wondering what my options are in this situation.

Any ideas? Just take an offshore product with paltry interest and minimum withdrawal penalties, or are there other answers out there?

Ta.

Replies

  • BaldurBaldur Forumite
    6.6K Posts
    I maxed out my cash ISA contribution for this tax year some time before I left the UK in an Icesave ISA.

    Right now, for the forseeable future, i am living and working overseas in North America where I believe I shall be taxed on all worldwide income.

    Obviously were i still in the UK i would, once I got my cash back from Icesave, I would have opened a new ISA elsewhere and transferred these funds into it rather than letting this cash sit in my current account.

    As I am not there now, I am wondering where I stand - is it pointless and impossible for a non-resident to open an ISA?
    As far as your Cash ISA is concerned, suggest that you check the transfer situation with the HMRC ISA helpline - see http://www.hmrc.gov.uk/leaflets/isa-factsheet.htm
    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.
  • thanks for the number and link. will check it out this week.
  • AirlieBirdAirlieBird Forumite
    1K Posts
    ✭✭✭
    You can move your money round as you please while you are abroad, you just can't put any further money into it. When you transfer just remember that you cross out the lines "I apply to subscribe..." and "I am resident and ordinarily resident... " on the form.

    If the ISA manager is using the new suggested ISA application form that doubles up as a transfer form it should give you the opportunity to delete these lines anyway.

    Edit: Here's an example of the form. Notice in the declarations it tells you on the 1st, 3rd and 4th bullets to delete if you will not be subscribing to this ISA.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
  • MilarkyMilarky Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts Photogenic
    ✭✭✭✭
    AirlieBird wrote: »
    If the ISA manager is using the new suggested ISA application form that doubles up as a transfer form it should give you the opportunity to delete these lines anyway.
    They aren't 'suggested' so much as practically mandated by HMRC for the sheepish ISA manager to put their name at the top. I've applied for an ISA transfer this week and I had to complete

    An 'investment application' form
    A 'cash ISA application' form and
    A 'cash ISA transfer-in form' and
    a signature card - despite having an ordinary account (and therefore a signature) with these people already

    It's getting stupid now - each form above asks for esentially the same information - with slightly different wording - a make-work dream

    Name x 3
    Address x 3
    Other account x 2
    NI number x 3
    Other provider's details (name. account number address) x 2
    amount to transfer x 2 (plus amount to invest x 1)
    date of birth x 3
    email x 3
    phone number x 3

    The HMRC is responsible for this spooking of ISA providers into all adopting extra forms instead of having the confidence to deal with the investor like a person. Instead the HMRC appears to be empire-building. (It's not like any of this can be pinned on intereference from the 'common market' either - it's an entirely made in Britain farrago)
    .....under construction....
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