Tax on Portman windfall

Scott21_2

Hi All,

I own a Portman ISA and as such I'm inline for a windfall payment from the recent Nationwide merger. My question relates to the tax on this windfall. At the moment I'm resident abroad and wanted to know if this makes me exempt from this payment? The woman I spoke to from Portman wasn't sure and actually thought that I wasn't allowed to keep an ISA whilst living outside the country. From my research, I think this is incorrect - I can hold one whilst living abroad, I just can't add to it.

Any help gratefully received.

Thanks in advance,

Scott

tom188

where do you live and how do they treat foreign income?

Scott21_2

I live and pay tax in Switzerland.

dzug

You are liable to tax on income arising in the UK in the same way as a UK resident. You may be able to sign the R85 form to say you have insufficient UK income to be liable.

You may also be liable to Swiss tax but there could be a double taxation agreement to mitigate this.

tom188

the payout will be outside the isa wrapper i believe, so taxed accordingly.

nb the correct form is R105 rather than R85.

Scott21_2

OK - thanks a lot for your help.

Scott