Saving from abroad but one day returning.

bmouthboyo

Hello guys,

I will be moving abroad for at least the next 3 years and will be looking to save about £1000 a month. £700 of this will be paid in GBP and the rest exchanged from Thai TBH.

I am not sure what the best thing to do with this money is investment wise. I have no mortgage, debts etc. Not sure I can add to an ISA from abroad so not sure what's next best thing. Offshore account, ISA in parents name?

Thanks in advanced.

innovate

You cannot save into an ISA if you are not resident for tax purposes.

There are several other threads talking about savings for expats.

xylophone

If you pass money to your parents and it is deposited in their name(s) whether in ISAs or any other accounts, the money becomes theirs and if they choose to gift it back to you on your return, there may be IHT implications. http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

If you already have an ISA see http://www.hmrc.gov.uk/isa/faqs.htm#14

Presumably you will be keeping your UK bank account so can remit money to it - this might be worth a browse

http://www.expatmoneychannel.com/content/banking-uk-expats http://www.halifax.co.uk/savings/help-guidance/important-information/
http://www.investmentinternational.com/faqs/general/faqs.html
You might try NatWest Stockbrokers or similar to discuss investing in stocks and shares?

You will need to clarify your tax position with HMRC http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm
http://www.hmrc.gov.uk/manuals/saimmanual/saim1170.htm

Dragonista

I can recommend an IFA in Thailand should you need advice as I have family there (though bear in mind Thailand isn't regulated). He will (probably) suggest saving in Sterling as Thai Baht is an unstable currency.

You cannot (or shouldn't) use an ISA if you're overseas but saving offshore will give you the same or better tax free benefits.

https://www.ppi-advisory.com

bmouthboyo

Blimey really think it's worth getting IFA? Must cost a fortune. We don't have any prior savings as this is the first time since University we have been able to really.

Regarding the TBH fluctuating I also would feel safer getting it to GBP than sat in a Thai account, despite the recent strengthening against the pound. Does anyone know how frequently is sensible to send back to the UK? Every £1000 off? Monthly?. I am aware there are charges and wanted to minimise this, get the best exchange rate etc.

So much to get done!

Dragonista

Yes I do. And the IFAs still take their income as a percentage of your investment here, should you invest, so there's no upfront fee.

The reason I think you should look into an IFA is because the tax implications are different. You can end up breaking the law through ignorance.

FWIW I save less than you plan on and I still took advice from two IFAs before making a decision.

For the £720 I wanted to send back to the UK it as cheaper for me to take it in sterling. But there are some good people like Moneycorp who can move it, I think they charge £5 for up to £5k (not 100% on that). International bank transfers are expensive!