Saving options for uk - Non Resident

Jamrock

Hi All,

Would like a bit of advice please.

I am currently a non resident living and working in the Middle East, Saudi Arabia. I know I can’t open an ISA but if anyone could tell me what saving options I do have would be grateful. I would like to start saving around £300 – £700 per month with a view to rising and adding yearly bonuses.

Thanks

Jamrock

Michael_Corleone

Do you hold any current or savings accounts with any UK banks? Most of their savings accounts will be available to you and you could apply to take the interest gross - although some banks won't even do this. It can be a long drawn out process to apply to new banks from overseas (and usually lead to a dead end).

I have been trawling the net for other deals with the impending reduction of the LTSB Vantage rates, but I'm not finding anything worth going for. Good luck and let me know if you find something ...

Cook_County

According to your previous posts you own a property here in the UK. On what basis do you think you are non-UK resident for UK tax purposes?

Loughton_Monkey

Cook_County wrote: »

According to your previous posts you own a property here in the UK. On what basis do you think you are non-UK resident for UK tax purposes?

Nothing worng with that.

For 6 years, I was not resident for tax purposes. But was able to rent out my UK properties quite happily. Didn't pay a penny tax on rent either.

To be non resident for tax purposes, you only need to be away for a certain period, in employement, in another country.

Loughton_Monkey

Jamrock wrote: »

Hi All,

Would like a bit of advice please.

I am currently a non resident living and working in the Middle East, Saudi Arabia. I know I can’t open an ISA but if anyone could tell me what saving options I do have would be grateful. I would like to start saving around £300 – £700 per month with a view to rising and adding yearly bonuses.

Thanks

Jamrock

If you already have UK savings accounts, you can pump as much money as you like into them. If you are non-resident, just send them an R85 for interest to be paid tax free.

If you don't have such an account, then you will not be able to open one. That's why you have to use offshore accounts, which are designed exactly for people like you.

rockitup

LM

It's an R43 Form to claim back tax paid on interest on saving accounts if the account holder is a Non-Resident, R85 Form is for UK Residents whose income from savings, employment etc comes to less than the personal allowance for the relevant tax year.

Also a few banks allow use of an R105 form to get interest paid gross for Non-residents.

Cook_County

Loughton_Monkey wrote: »

Nothing worng with that.

For 6 years, I was not resident for tax purposes. But was able to rent out my UK properties quite happily. Didn't pay a penny tax on rent either.

To be non resident for tax purposes, you only need to be away for a certain period, in employement, in another country.

I am afraid that is not what the courts say about breaking UK residence. You need to settle somewhere else, be in full time employment abroad and that full time employment must itself include a complete UK tax year.

My previous comment was I agree unclear.

Loughton_Monkey

Cook_County wrote: »

I am afraid that is not what the courts say about breaking UK residence. You need to settle somewhere else, be in full time employment abroad and that full time employment must itself include a complete UK tax year.

My previous comment was I agree unclear.

I understand about the full time employment, but that (by assumption) applies to the OP. Upon taking up employment for 12 months or more abroad, you apply to become non resident for tax purposes.

The first time I did this, it was in USA for exactly 12 months (plus a week actually). Tax free status applied completely on my earnings for that 12 months - which were not a tax year, but July to July.

More recently (2000) I worked abroad for 6 years. I rented out both properties, and simply applied for "Non Resident Landlords Scheme" which allowed me to receive rent free of automatic tax deduction. My mortgage payments, agent fees etc. allowed me to show zero or minimal income - thus completely avoiding any tax.

So unless things have changed since 2006 when I came back, I stick by my statement of "To be non resident for tax purposes, you only need to be away for a certain period, in employement, in another country". the 'certain period' - to clarify - is 12 months.

The OP is working abroad. He claims to be 'non resident' and thus I assume that he simply applied and got non-resident for tax purposes status, as he is entitled to providing he is away for 12 months or more.

Jonbvn

Cook_County wrote: »

According to your previous posts you own a property here in the UK. On what basis do you think you are non-UK resident for UK tax purposes?

Given that the OP is in full-time employment overseas, owning a UK property is unlikely to have any bearing on his tax-status.

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

Dave101t

so now we are agreed he isnt cheating any tax systems, put the money into any uk savings accounts you already have open, or give to a relative to use their isa allowance, or use offshore accounts.

Jonbvn

Dave101t wrote: »

...or give to a relative to use their isa allowance

That is not allowed.

If the OP has a UK address, he should have the option to open a savings account with any bank/BS, except for ISA's.

When I was worked as an expat under similar circumstances, I never had a problem opening accounts.