Opening an account from abroad

Vicky_Jones

I am currently living abroad but would like to chase the rates (currently using FirstSave and ex-Kaupthing now ING) and open a new savings account. I liked the look of the AA account but on applying it has a notice saying not to apply if you are outside the UK. I can provide a UK address and my bank and credit cards are still registered to a UK address so do you think I should give it a go? Are there strict regulations about opening a UK savings account from abroad? Advice would be appreciated - thanks!

eeja

Vicky_Jones wrote: »

I am currently living abroad but would like to chase the rates (currently using FirstSave and ex-Kaupthing now ING) and open a new savings account. I liked the look of the AA account but on applying it has a notice saying not to apply if you are outside the UK. I can provide a UK address and my bank and credit cards are still registered to a UK address so do you think I should give it a go? Are there strict regulations about opening a UK savings account from abroad? Advice would be appreciated - thanks!

Where are you living ? If you are a non resident probably a crazy idea UNLESS you place the funds offshore ie IOM & Channel Isles as you say you are a non UK resident therefore non UK taxable.

KingL

Many (?? if not all??) UK based accounts are only available to you if you are currently Resident in the UK. HMRC has specific definitions about the duration of your absence(s) and the different categories of Residency, e.g.

• Residence
  
  Residence in the UK is normally measured in terms of physical presence during a tax year. An individual is generally considered UK resident if present in the UK for 183 days or more. This can be a single continuous period, or spread over a number of visits during the tax year. However, by Inland Revenue concession a tax year can be split in certain circumstances (e.g. upon leaving the UK permanently, or arriving to live in the UK permanently), so that an individual is resident in the UK for part of a tax year and non-resident for the rest.
• Ordinary residence
  
  Ordinary residence generally requires habitual residence in the UK. Someone can be resident without being ordinarily resident, and vice versa. An individual who comes to the UK regularly will be treated as ordinarily resident if for example visits average 91 days or more a year over four or more tax years. The date from which the individual is treated as ordinarily resident depends upon that person's intentions from the outset. For instance, if there is an intention to visit the UK regularly for at least four tax years, he may be treated as ordinarily resident from the time of arrival in the UK.

from http://www.taxationweb.co.uk/1-minute-guides/property-tax/residence-and-domicile.html
You must be Resident (as defined above, also google for wider definitions) to open an ISA account. Opening an ISA whilst not UK Resident is illegal.

I'm not sure whether opening other types of account as a non-resident is illegal as such, but for many accounts it will expressly break the Terms and Conditions. At least one bank I have an account with explicitly say that making an internet transaction on your account from overseas while just on holiday breaks the TnCs and they have told me that if actual fraud occured on that account later on, your protection could be invalidated because of your earlier transgression. Your existing accounts may say the same, let alone opening new ones.


At a practical level, many banks will post application forms to your UK address and expect you to respond to them. Many will ask for a recent utility bill addressed to you at the UK address. You would at least need to be able to provide info/respond to these.

Not sure whether there are laws blanket-banning the opening of regular/fixed term accounts as a non-resident, maybe someone more knowledgable can comment on this.

There are a few threads from about a week ago on international banks if you want to hunt around for those.

miserable_ol_so_n_so

Take a look at Close Brothers website. Theyre covered by UK scheme, seem to be well versed in dealing with British Expats, also have currency accounts etc.You can also try https://www.halifax-international, located in the Isle of Man, not covered by UK protection, but happy to take your deposit as a non uk resident.

Aegis

eeja wrote: »

Where are you living ? If you are a non resident probably a crazy idea UNLESS you place the funds offshore ie IOM & Channel Isles as you say you are a non UK resident therefore non UK taxable.

Surely they could request an R105 form to declare the non-resident status and receive the interest tax free?

eeja

Aegis wrote: »

Surely they could request an R105 form to declare the non-resident status and receive the interest tax free?

You are taxable on ALL income that arises in the UK FULL STOP. That applies even to those who have never been to the UK are non resident or not ordinarily resident.
Of course if you have a personal allowance then you can claim the tax back if the income is under the amount of your personal allowance

Aegis

eeja wrote: »

You are taxable on ALL income that arises in the UK FULL STOP. That applies even to those who have never been to the UK are non resident or not ordinarily resident.
Of course if you have a personal allowance then you can claim the tax back if the income is under the amount of your personal allowance

Errr, no. I fill in R105 forms all the time for customers. It allows non-ordinarily residents to claim their interest tax free if they are spending less time in the UK than the minimum threshold for income tax to apply, and essentially works on the assumption that they fall under another country's tax jurisdiction.

The form is here: http://www.hmrc.gov.uk/forms/r105.pdf

miserable_ol_so_n_so

All above is tax liability.....none of this precludes someone living abroad opening an account in uk.....its only some institutions dont want to know if u r not resident in uk.......clearly if close bros are happy to allow you.......it must be legal and above board........

eeja

KingL wrote: »

Many (?? if not all??) UK based accounts are only available to you if you are currently Resident in the UK.

Not sure whether there are laws blanket-banning the opening of regular/fixed term accounts as a non-resident, maybe someone more knowledgable can comment on this.

There are a few threads from about a week ago on international banks if you want to hunt around for those.

REPLY

Nationwide like many UK institutions, insurance Co's etc etc have a published rule that their accounts are for UK residents only .
Do you want me to let you into a well known secret ?
NationWide B.S has tens or even hundreds of thousands of non resident expat a/c holders all around the world .
Why is N/W so popular with expats ? Because their debit card is the best thing since sliced bread ! Use it in ATM'S around the world and you get the interbank exchange rate and are not charged a penny for usage . No expat should be without them . Many use these cards are used not only to draw their UK pensions but to pay their daily grocery bills !

gozomark

Why is N/W so popular with expats ? Because their debit card is the best thing since sliced bread ! Use it in ATM'S around the world and you get the interbank exchange rate and are not charged a penny for usage . No expat should be without them .

but how does an expat get one ??

MoneySavingNovice

When I lived in Germany - I did not have too much trouble opening and closing accounts in the UK.

Bank of Scotalnd plc (i.e. Halifax Birmingham Midshires, AA etc) were very happy to open accounts for me. One thing that I found - from personnel experience - is that you should ring the Customer Services Team, or speak to them directly rather than trying to do this over the internet. Most of the internet sites can't cope with a address outside the UK.

A couple of companies such as Northern Rock would not open an account for non UK residents, and also you should not try and open an ISA or add to an existing ISA while non resident, you will most likley be fined by the Inland Revenue.

Finally you should complete the R105 form. Make sure that complete this one and NOT the R85, that way you won't be taxed at source on your interest. However if you earn UK earnings over you Personnal Allowance you will need to complete a Tax Return. Also you may have a tax liability in the country you are resident on this interest.