ISAS explained to a foreigner

Bjornki

Hi,

I'm Belgian but UK resident and this system doesn't exist in Belgium so I have a few questions.

I'm currently with Barclays. Are they a good bank to start your ISA?

Will I receive the full interest if I start an ISA just before the end of the tax year?

Let's say that I'm leaving this country in 6 Months. Will I be able to continue saving in ISA?

Or can I take out the money?

Thanks

Bjorn

grumbler

Bjornki wrote:

I'm currently with Barclays. Are they a good bank to start your ISA?

No. They have good rate only for £18000+ balances. Starting rates are just 4.2%-4.3%: Variable Rate ISA (Mini Cash)

Will I receive the full interest if I start an ISA just before the end of the tax year?

As for all other types of saving accounts interst is calculated on daily basis.

Let's say that I'm leaving this country in 6 Months. Will I be able to continue saving in ISA?

HMRC Factsheet :

Moving abroad
You can only open an ISA if you are resident and ordinarily resident in the UK for tax purposes. 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 open an ISA and then move abroad, you are no longer classed as a UK resident. So you cannot put money into the ISA.

You can still keep your ISA open and you will still be entitled to the tax benefits on investments held in the ISA. If you become UK resident and ordinarily resident, you can start putting money in again.

Or can I take out the money?

Yes, you can. Some ISAs can have restrictions though - as other types of saving accounts.

alared

Might be wrong here, but I think you need to be a UK citizen with a N.I. number to qualify for an ISA.

Cook_County

Firstly there is no requirement to a UK citizen to have an ISA (this would be illegle under EU law). A NI number is required but a Belgian working in the UK may well have one.

Secondly ISAs are only available to those who are ordinarily resident. If you are not ordinarily resident then the account cannot be opened.

Third, the ISA can remain open after leaving the UK. The interest would of course be taxable in Belgium if you are going back there and the UK bank accounts would need to be reported.

Fourth, and most important, having an ISA is probably not the right answer at all given that you are presumably non-UK domiciled so can pay no tax at all on interest without limits just by holding the money offshore.