Newcastle BS wants to close my ISA account

KingL

Possibly. Most UK banks don't allow you to open any kind of account unless you have a UK address, tho'.

ed: Also, in my experience, their cast-in-stone procedures always require you to complete an ISA declaration (stating that you are resident and ordinarily resident), even if it's only a transfer.

ed2: and, thinking about it, opening a new ISA for the purposes of transferring is technically opening a new ISA. Sure, it isn't subscribing to a new ISA, but it is opening one, which is the wording used in the faq.

Still I'd be happy to be proved wrong


.

turbobob

From a product providers point of view an ISA transfer in is certainly a new account, but I suspect from a HMRC rules point of view it is not a new ISA. Hopefully someone in the know can confirm one way or the other

MoneySavingNovice

KingL wrote: »

Actually ISA rules allow you to keep existing ISAs open while overseas, just not to open new ones.

cloud_dog wrote: »

KingL, thanks for that. Do you know how long it is allowed for?

LemonTree wrote: »

There is no time limit!

As a previous e-pat (also in Germany) I can confirm that this is correct.

Regarding Newcastle 'demanding' that you close the account, I would make a complaint, they are within their rights to close the account, but it is not reasonable that they won't transfer the ISA to another provider. In my experience I found the Halifax the most helpful in opening accounts while being an ex-pat

Hope you enjoy living in Germany as much as I did.

LemonTree_3

noh wrote: »

http://www.newcastle.co.uk/legal

Under the heading "Terms and conditions of Website use"

Thank you! I've found this

The Society controls and maintains this website from England and the material and information contained in this website is directed solely at people who are resident or ordinarily resident in the UK. The products and services described on this website are only available to UK mainland residents. The material and information on the website may not satisfy the laws or regulations of any other jurisdiction and it is your responsibility to observe these restrictions. The material or information should not be distributed or accessed by any person in any such jurisdiction. You accept that your use of this website and any material or information on the website is subject to English law and if any dispute arises from your use of this website or material or information contained on it that such dispute will be heard in the English courts.

Still, it sounds silly - why are EU citizens outside the UK not allowed to access to their accounts?!

Do you think I would be successful when I write to Financial Ombudsman Service? (Of course after talking to Newcastle BS first).

dunstonh

Still, it sounds silly - why are EU citizens outside the UK not allowed to access to their accounts?!

Possibly linked to EEA state pass-porting rules on financial services or due to increased fraud potential and money laundering.

Why do you even need internet access? You cant pay into it. Its not a current account. So, it wont have the level of transactions.

Do you think I would be successful when I write to Financial Ombudsman Service? (Of course after talking to Newcastle BS first).

I doubt it. The FOS will not rule on commercial decisions as long as its not discrimination. If a company chooses not to offer services to non uk residents, then it is a commercial decision. Its not a mistake or error.

Re ISAs continuing if you go abroad. yes they can as has already been mentioned. However, the country you are now resident in for tax purposes may not recognise the tax free status of ISAs and you may need to declare the interest to be taxed in that country.

rockitup

LemonTree wrote: »

Thank you! I've found this

Still, it sounds silly - why are EU citizens outside the UK not allowed to access to their accounts?!

Do you think I would be successful when I write to Financial Ombudsman Service? (Of course after talking to Newcastle BS first).

It's a shame that you have told Newcastle Building Society already. I have had problems like this back in late 2008 with another financial institution when I was travelling on a RTW trip. I expect they worked out that I was signing on to my internet banking from a lot of countries excluding the UK!

I manged to persuade them that I was returning to the UK and gave a relatives address (like a lot of other people have done). Now I am living abroad I have a VPN (Virtual Private Network) set up which costs me £5 each month and gives me an IP address based in the UK and works fine for the internet banking and also watching BBC iPlayer and ITV Player too.

I know it is bending the rules but I ain't leaving my Sterling dosh in an Offshore Account on IOM or CI.

Mikeyorks

LemonTree wrote: »

Does anyone have a good idea here?!

The HMRC guidance to ISA managers is clear (and the quoted FAQ clearly hasn't read the guidance). And qualifies that you can keep your ISA - but you can't add to it. The guidance does not prevent you transferring the ISA (the guidance says nothing about 'opening' an ISA ...... it only discusses funding) ......... but ISA providers will, as they simply baulk at abroad addresses.

Newcastle are being myopic (most financial onlines have a caveat that they are only intended to be accessed from the UK) .... but they're probably doing you a favour. As the ISA interest will degrade and there's nothing you can do about it. So keeping it in a short term cash ISA (as opposed to a long term fix) isn't a good idea.

Move the money (transfer it if it's more than this years subscription) to a S&S ISA with Hargreaves Lansdowne. They will support your abroad address (look at the 2nd tab and put 'Germany' into the right hand side drop down) and you will be able to manipulate the Funds for best effect ..... even if you can't add further cash :-

http://www.h-l.co.uk/investment-services/vantage-service/moving-overseas