Managing ISAs from abroad

easlyn

I've recently moved abroad - I had an existing ISA with Alliance & Leicester. They now want to close my account since I am no longer resident in UK however according to HMRC - I can keep my ISA - just cant deposit in. Does anyone know if any other banks would let me transfer the ISA over?

Jonbvn

Since you are already overseas, I think you will have trouble opening a new ISA to transfer to. When I worked as an expat I always found it best to get my ducks in a row before I left the UK.

Primrose

Presumably this is a cash ISA? I don't know whether other banks would accept a transfer in. My impression was that if you went to work abroad you could keep existing ISAs but not add to them or take out additional ones for the duration of your sojourn abroad, but perhaps somebody on here will be able to clarify that.

The other possibility, if retention is an legal option, might be for you to convert it to a equity ISA with broker like Hargreaves Lansdown. They will provide you with 6 monthly statements and you have the option to switch your holding to any other funds if your tactics change.

Mikeyorks

Primrose wrote: »

My impression was that if you went to work abroad you could keep existing ISAs but not add to them or take out additional ones for the duration of your sojourn abroad, but perhaps somebody on here will be able to clarify that.
.

That is the situation .... (from HMRC) :-

If you start an ISA in the UK and then go abroad, you cannot continue putting money into the ISA (unless you are a Crown employee working overseas or the spouse or civil partner of a Crown employee working overseas). However, you can keep your ISA and you will still get tax relief on investments held in the ISA. When you return, you can start putting money in again (subject to the normal annual limits).

....... and therefore (at least in theory) you can transfer the ISA. But most people have found that providers are unwilling to accept a transfer with an abroad address. The same will likely apply to attempting to transfer it to an S&S ISA.
However - A&L should not be attempting to close the original and HMRC should be able to influence that, if it's the reason A&L are giving. It's likely being done from the ignorance they're renowned for.