Not so nISA if you move abroad!

innovate

It's entirely down to TD Direct whether they want to offer accounts to residents of a given country or not. They might also change their policy over time. Nothing you can do about this, and nothing that the FOS can do about it.

What does not seem ok, though, is that they decide to close your ISA. they should be suggesting that you have the choice between a transfer to another provider, and having the account closed. Unless, of course, they know with some authority that no other ISA provider would offer you an account because the country you live in might be on an embargo list.

Mikeyorks

Nobby29 wrote: »

Many thanks Pip, I shall certainly check that option.

It's likely to be academic I'm afraid.

In theory - as you were told - you can retain your ISAs (cash or S&S) but not contribute further. In practice - you will discover there are problems after a while. You've lasted longer than most.

In theory - you can transfer your ISA holdings to a different provider. In practice - you will find it impossible. As soon as you can't tick the application box that says 'You are resident and ordinarily resident in the UK ....' then you're dead in the water.

Your only real option is, as others, to tell a little white lie and utilise the address of a UK based relative. But it can be an issue if you then need to Login from abroad to adjust your holdings.

gt94sss2

Nobby29 wrote: »

In regard to not mentioning the country, that was deliberate, but I understand the point. In regard to the money laundering point, why send me to the British Embassy causing me great cost and inconvenience and then a year later make me shut the whole thing down.

It would be interesting to know what country you live in as it may be that someone knows of an institution which may accept you as a customer. Somewhere in the Commonwealth I assume as you mention 'High Commissioner'.

I suspect that TD Direct probably asked you to prove your address etc. not necessarily go to the British Embassy.

However, as others have said you may have problems opening a new account.

As you are overseas do you benefit from the shares being in a ISA? What if you asked them to give you paper certificates and held them (outside an ISA) directly with the Registrars...

Regards
Sunil

atush

You benefit if you ever return to the UK that they retain their TF status. If not returning, then invest with someone else outside the wrapper.

Call HSBC expat services, see if they will help.

gt94sss2

atush wrote: »

You benefit if you ever return to the UK that they retain their TF status. If not returning, then invest with someone else outside the wrapper.

Agreed, hence the question. Its not clear if the OP plans to return to the UK.

Regards
Sunil

Nobby29

Many thanks for all comments. I have to say that Mike Yorks concerned me most. Overall, the bottom line is that I am not investing from this country. I have been open and honest with the tax authorities and T D Direct. I have to sleep at night.The 'authorities' can't have it both ways. Okay, so I can't invest new money. All money invested was earned in the UK and invested accordingly, and I can't make new investments, fair enough, but then if I struggle to transfer the ISA due to the fact that no one will take a non-resident from the UK that means that the UK tax authorities should advise everyone to cash in their ISAs the minute they move abroad. Why make them suffer later? Indeed beyond Mike's comments, certain legal advisers have suggested that you cannot transfer money because this would involve opening a new account which you are not allowed to do because you are not a UK resident. This is not simply Catch 22 it must surely be unfair and unreasonable. And given no money is being sent from this 'forbidden/dangerous/high-risk country (not!) I'm still slightly mystified. It seems more like it's my ball and my rules if I don't want others to play, then that's my prerogative. As for whether I will return to the UK, while we all like to think we shape our own destiny, I believe that these things are not always in our own hands. But I would certainly like to keep that option open.

innovate

Which other providers have you tried, and why did you not succeed to open a transfer account?

Nobby29

Interestingly, a financial adviser posted this online: "Unfortunately, if you're resident abroad you can't move your money. This is because, in order to transfer, you need to open a new ISA - and you can only open an ISA if you are ordinarily resident in the UK for tax purposes."

Thus it's a catch 22 if the company close down your ISA because you are not allowed to transfer as this would constitute opening a new account.

However, after speaking to HMRC, I have just sent an email to the actual gentlemen in HMG responsible for creating this whole ISA policy, so I will keep everyone posted accordingly. Many thanks for all the advice, support and comments.

Nobby29

Dear all,
This is the definitive response from HMG/HMRC...

The rules say that once you are regarded as non UK resident (unless Crown Employee etc) you can no longer subscribe to an ISA. However, a non UK resident can transfer an existing ISA between ISA managers. You are not opening a new ISA you are simply transferring the management of an existing ISA. You cannot add new money to the ISA following the transfer so you need only provide the new ISA manager with a transfer authority instruction.

The problem you have encountered is that ISA managers can refuse to manage ISAs on behalf of non UK residents. You should therefore arrange to transfer your existing ISA to a new ISA manager by asking the new ISA manager to arrange the transfer for you. Again, you may hit an obstacle if your new manager of choice also doesn’t manage ISAs on behalf of non UK residents. This is a business decision on the manager’s behalf and he has the right to opt out. It’s a matter of finding an ISA manager willing to accept the transfer.


Perhaps, this is simply what many suggested already, but it's good to have the definitive answer nevertheless. The issue now is finding an ISA manager who is happy to take on a non-investing, non-UK resident. Still it's admin fees and money for them for very little work.


Thanks again to all for comments and advice.

Archi_Bald

That's exactly what I would have expected the HMRC to say because it tallies with their website and guide to ISA Managers.

If you are going for a transfer, please can you post back which provider(s) you approached and what their response was. Might be useful for someone else.