Paying tax on savings while living abroad?

trollette

Hi,

I'm wondering what my position is regarding the above.

Basically, I've been living abroad for the last 5 years in Europe since I finished University . I'm wanting to put some money that's in my current account into a savings account in Britain, but I'm unsure whether I need to pay tax on it?

I pay tax in the country that I'm working in and have savings accounts there too, but I don't think there's any point moving my "British" money over there as I would lose a lot through the exchange rate I think.

Can anyone advise me on what I need to do? I've read a few things on the site, but I'm more confused than ever!

Thanks very much for any help!

AndyinLondon_2

You need to find a bank that will allow you to register as a non-resident. Then complete a form R105 which allows the bank to pay your interest gross. There are certain rules about who can complete an R105, which include not spending more than a certain number of nights per year in the UK. See www dot hmrc dot gov dot uk/cnr/r_and_d.htm

Not all banks accept R105s.

Depending on the amount, you may wish to consider an offshore bank based in the Channel Islands or Isle of Man.

TCA

Just to add to the above, if you're a British citizen, even though non-resident, you're still entitled to your personal allowance.

Opening UK accounts without a UK address isn't easy mind you.

trollette

Thanks for the replies. Managed to open it yesterday and the bank accepted the form above!

Daelim

Glad you got sorted OP!

I'm looking for a bit of advice myself actually. I live in Korea and I don't pay taxes in the UK - only in Korea.

I have a Natwest select account which I am using to transfer money home each month and it is starting to get quite substantial. My other half and I are looking to save for 4 years with a view to buying a house outright at the end of that period.

Am i allowed to open an ISA? From what I've read the answer is no but an above replies mentions otherwise?! Also, can I open other savings accounts in the UK aswell?

Biggles

No, you can't open an ISA, or even subscribe further to an existing one.

Trollette, I'd be interested to know which bank allowed you to open an account, as this would be useful to someone I know. Did you use existing ID (ie your old UK address) for verification?

Daelim

Biggles wrote: »

No, you can't open an ISA, or even subscribe further to an existing one.

Trollette, I'd be interested to know which bank allowed you to open an account, as this would be useful to someone I know. Did you use existing ID (ie your old UK address) for verification?

Okay, so no ISA for me for the time being! How about other forms of savings accounts? Pension?