Leaving the UK and dont know WHO to save with..

Robert_Sprason

Hi All
I am new to the forum so please excuse my ignorance if I have posted this in the wrong section, but I figured its about savings so..well here goes:
I have just started working for a company who have placed me in South Korea. I am a UK expat now (or will be when the forms are completed etc) and so will be removed from paying UK income tax. I am not allowed to have ISA's (due to being an ex-pat), but I am allowed UK savings accounts. I am looking to put away around 2,000 pounds a month (maybe a bit more) into some kind of savings account. I also have 3,600 pounds of ISA to transfer into something else plus around 4,000 pounds in my UK bank account at the moment. So I am looking to do something with 7,600 pounds. The only problem is I really don’t know what account to put it in and at the moment it seems a minefield. I am 22 and this is my first full time job since finishing university last summer; I have never been very good with savings so I figured now I have a proper income I need to sort myself out. So, all suggestions very welcome.
Kind regards

Robert

moana

You will only have to pay UK tax if the interest on the 7600 is greater than your personal allowance.
As this is unlikely why not keep the money in the account you now use.
It will be safe there.

Or you could register with Fidelity and look at some of the UT's they supply and then invest in a non ISA UT.
In fact now that you are earning it would be well worth looking at the Fidelity site where you can learn a lot very easily, this will stand you in good stead for the next 40 years or so.
Fidelity have many UTs including those provided by Fund Supermarket and you can keep all your investments under one folder. You can also do your switching and buying and selling online.

When you get to Korea you might also like to look around for investment mediums in Korea, I'm sure there will be many.

This link shows you what is available in Singapore Malaysia and Hong Kong at the moment, in fact there are a few others similar to this. You could use this sort of portal if you wish in Korea, if you can find one there.

Great idea to now get up to speed in investing.
Now is the time considering both your age and the way the markets are at the moment.

Baldur

Robert_Sprason wrote: »

I am not allowed to have ISA's (due to being an ex-pat)......

Incorrect, you are permitted to retain any ISAs that you open(ed) before leaving the UK but you cannot continue to subscribe to them - 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

nico26

I would basically open a couple of accounts with HSBC or Citi bank who have branches in South Korea and the UK to get you underway.One for saving and an everyday account.The problem you have is whether you are going to to really like it there and be there long term like 5 to 10 years. You will have enough ajusting to do to start with without worrying about investing savings in portfolios etc.
It is a very different lifestyle and culture from uk,so before going to make rash decisions with your savings and tying them up there I would tread carefully to begin with.
I would also leave some in uk . I would take what I needed and leave the rest if you intend to return at some point.Saves a lot of problems . After you have settled in then get some advice. Are you getting paid in local currency or dollars?

wombat42_2

For all their faults, Nationwide are good as they are almost unique in not charging for foreign withdrawals.

mrposhman

Baldur wrote: »

Incorrect, you are permitted to retain any ISAs that you open(ed) before leaving the UK but you cannot continue to subscribe to them - http://www.hmrc.gov.uk/leaflets/isa-factsheet.htm:

That is correct and being as I'm in the same situation (not going to korea though) I just checked with hmrc and whilst you are still resident you can take out the full ISA limit even if you won't be a resident throughout the year for tax purposes, so if you are still a UK resident at the moment, you can take out your full £3600 cash limit or full £7200 S&S limit now before you leave.

I'll certainly be taking advantage of this before I leave.

Cook_County

mrposhman wrote: »

That is correct and being as I'm in the same situation (not going to korea though) I just checked with hmrc and whilst you are still resident you can take out the full ISA limit even if you won't be a resident throughout the year for tax purposes, so if you are still a UK resident at the moment, you can take out your full £3600 cash limit or full £7200 S&S limit now before you leave.

I'll certainly be taking advantage of this before I leave.

Your other posts say you are moving to Australia which sounds great!

You will of course have to declare interest dividends and capital gains wrapped in a UK ISA on your Australian tax returns so they may not be perfect in your situation.

mrposhman

Cook_County wrote: »

Your other posts say you are moving to Australia which sounds great!

You will of course have to declare interest dividends and capital gains wrapped in a UK ISA on your Australian tax returns so they may not be perfect in your situation.

Yep thats right, australia is where I'm going, good memory.

I'm not sure what I'll be doing after the 2 initial years so it depends on whether I cash anything in thats in my ISA within 2 years, if not then I may cash them in whilst resident in the UK so hopefully will miss the CGT limits in Australia. I will have to hold for a year anyway, otherwise I have to pay income tax on the whole amount but if I hold for a year then I get a 50% reduction in taxable gains.

We'll see how it goes, it may work out well, it may not but if I wasn't in the ISA then capital gains would be payable on everything anyway so at least its a possible insurance policy.

khana

This looks like a good option for your requirements.

http://www.abbeyinternational.com/MOS.asp

Jake'sGran

wombat42 wrote: »

For all their faults, Nationwide are good as they are almost unique in not charging for foreign withdrawals.

They have changed the rules but I have not checked with regard to cash withdrawals as I have never withdrawn cash abroad. I have just received a new booklet from them. In the past I used to pay my hotel bills in Spain with my Nationwide card but now there would be no advantage in doing that.

jem16

Jake'sGran wrote: »

In the past I used to pay my hotel bills in Spain with my Nationwide card but now there would be no advantage in doing that.

Why not? Spain is still free, as is most of Europe.

http://www.nationwide.co.uk/current_account/foreigntransactions.htm