Working abroad "temporarily", saving in UK...?

Claracbo

(Apologies if there's a thread on this already - I did a search but didn't see anything.)

I'm currently living in Australia where I've been for 2.5 years. I'm on a 4 year working visa and although I'm resident in Australia for tax purposes, I'm not yet a permanent resident. I don't have any immediate plans to return home.

I have maintained my UK bank account for practical purposes - with just a few hundred pounds. But recently I came into some money and I'd like to store it somewhere that pays a decent rate of interest.

I'm not sure of my longterm plans vis a vis staying abroad or returning to the UK so I don't really want to lose money transferring the money over here only to lose it again if I return to the UK.

Does anyone have any advice regarding whether I can open a new savings account in the UK? I'm still eligible to vote in the UK (if that makes any difference?)

Thanks in advance for any advice.

Clare

ozzage

If you do it with the same bank I can't see why it wouldn't work. Otherwise you'll need to provide proof of address and that might be tricky!

withnell

You can hold current ISAs, but aren't allowed to open anymore while living abroad. I'm not sure about the tax treatment, that all depends on what reciprocal arangements are, how many days you're in each country etc!

JoeCrystal

That is a thought, can you 'pay' into your current Cash ISA while aboard?

EdInvestor

As a non resident you won't be able to open new accounts in the UK, though you could open an offshore sterling account in the Channel Islands/Isle of Man, where most UK banks have a presence.You can aslo continue to pay into any UK bank accounts you already have.

Baldur

JoeCrystal wrote: »

That is a thought, can you 'pay' into your current Cash ISA while aboard?

No you can't subscribe (pay new money into) to an ISA if you are not resident and ordinarily resident in the UK for tax purposes - 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.

Claracbo

Thanks to everyone for their replies.

My current UK bank account pays a paltry interest rate so I was hoping to tuck the money away somewhere more productive but it looks like I'll be leaving it where it is for now... :-)

Thanks for your suggestions.

Clare