Not so nISA if you move abroad!

Nobby29

It's a NO from HSBC, don't meet the criteria - weird how the money stays in the UK, but the resident doesn't and thus it doesn't comply with their regulations. Anyway pointless applying logic. So it's Catch22. Tried to complain to HMRC, but no response. If you move abroad be prepared to have your ISAs stopped guys. Supposedly you can have a SIPP if you've lived in the UK during the last 5 years, but again one of the first questions is are you a UK resident? Think James Hay can do something for you here though.

Stanley_St

We live in a country where a high proportion of its citizens live abroad, and some come back to live here. It is unfair for them to be penalised in this way.

I hope that this can be put right, but meantime this is a useful cautionary tale for those of us still here. Perhaps another argument for having more than one ISA provider, so that there is somewhere to move to when one wants to close down an account.

atush

The thing is, to move your ISA to a major bank who is around the world before you go. Like HSBC (who would have taken the transfer when you were still resident).


Your problem was, in leaving it where you did.


Go on and make a formal complaint to HMRC, don't know how far you'll get but it'll give you something to do.

Nobby29

HSBC's final call:

I am sorry that we are unable to assist you with opening an account at
this time.

The bank is not legally obliged to give a reason for this other than
that we have taken a commercial decision. Our internal policies are
confidential and we are not permitted to disclose any further
information.

HMRC, please note the word OPENING, despite me stating to HSBC time and again that this was a TRANSFER iaw your instructions for financial institutions, for them it's an opening and that it was I meant earlier by a fudge, as for ascertaining that TD Direct or anyone for that matter would change its policy after 4 years in my current location, what happens if HSBC change its policy and cancel all expats ISAs or NATWEST or anyone? 'Even though it's your ball, it's my game and my rules and if I don't want to let you play, I shan't!' As Stanley St says, a cautionary tale indeed.

JasonPr

Nobby29 wrote: »

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.

Nobbdy29, how do you manage to get such detailed responses from HMRC? Or is the quoted text your transcript of a phone conversation with HMRC?

joerugby

We've lived abroad in the past. You couldn't always get today's Daily Express. Living abroad is like that. We got used to it.

atush

Joe, so have I.


but your response is pointless.

brasso

I'm not sure why one or two people have got a bee in their bonnets about the OP, who I feel sorry for. He/she isn't being unreasonable in what they are trying to do or intemperate in what they've said. It seems galling that they are having the account forcibly closed. Regardless of where the OP is residing, why would an existing ISA with existing holdings matter to the manager/platform?

It interests me because i also live and work outside the UK at present and also have an ISA. I've always known that I can't add to it while resident overseas but it concerns me that the platform I use might just decide that they don't want my account anymore. More worrying is the apparent Catch 22 whereby HMRC are saying the ISA can be transferred within the rules, yet other managers are saying they don't agree that it's a transfer.

Even though no new funds would be added while I'm away, I'm puzzled that they wouldn't want to house the investments for a recurring platform fee, as well as charging commission every time I wanted to buy or sell a holding. On top of that they could charge a fee for the transfer. All in all, could be quite a nice little earner for them without really having to do or pay anything to maintain the account.

I hope the OP gets this sorted.

joerugby

atush wrote: »

Joe, so have I.


but your response is pointless.

I was simply pointing out, from my own experience, that sometimes you don't get the same service from UK-based companies when you go to live abroad. And that often there is very little you can do about it, it's just something you have to put up with.

I tried to say this in a lighthearted manner and did not wish to offend anyone - just trying to help!

innovate

brasso, there are plenty of people who live abroad and who have zero problems with their existing ISAs which they left behind when they left.


Just because one person, who feels they are too important to even say which country they live in, has a problem doesn't mean all expats now need to be worried.

If a firm close down an account from which they make regular money, they have a reason for it. One reason could be that the profit from the account is so insignificant, or even negative, that it makes no business sense to continue to provide the account. Another reason could be that they have decided not to do business with residents of a given country, for ethical or legal reasons. Or for any reason they fancy - it's their business and they can decide where they transact. A third reason is that they have reason to believe that the account holder is involved in money laundering or other criminal activity. If that is the case, it would be illegal for them to continue to offer the account holder any facilities.