Total beginner: Debt free, 80k cash savings, single... What next?!

DonM

Archi_Bald wrote: »

The UK isn't the only country in the world that encourages pension savings. It could be that the OP could contribute to a subsidised pension investment in their country of residence. Non-subsidies investments are of course open to everyone.

Yes, my mistake that I wasn't clear. A pension in his country may be an option (if one exists) however he gives a timeframe of 3-10 years so it is extremely doubtful if it will be appropriate. ISAs are out because he is not in the UK and pensions are (probably) out due to his timeframe.

TCA

jimjames wrote: »

I'm also assuming you can't get UK tax relief on pensions when you aren't paying any UK tax.

Contributions of up to £2,880 can be made for the first 5 years abroad and these would be grossed up to £3,600 by HMRC. No UK tax need be paid as far as I understand it. Not much time left for the OP on this though.

Similar to the link Archi supplied:

"This means that if an individual is a relevant UK individual but has no relevant UK earnings that are so chargeable, then relief from UK income tax is only available on contributions up to £3,600 in a tax year. Someone who meets the third of the above conditions for being a relevant UK individual will qualify for relief up to that level in each of the five tax years after ceasing to be UK resident. But they can only receive that relief if their registered pension scheme operates relief at source."

http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm13103020.htm

TheTracker

Are you having fun and enjoying your status? Ensure you are is my first advice. Travel, adventure, experience, learn.

Archi_Bald

TCA wrote: »

Contributions of up to £2,880 can be made for the first 5 years abroad and these would be grossed up to £3,600 by HMRC. No UK tax need be paid as far as I understand it. Not much time left for the OP on this though.

They'll probably find it difficult to find a provider who lets them open a new account. Similar to people finding it very difficult/impossible to transfer an existing ISA when abroad. Although transactions are allowed by HMRC, the providers find it easier to just stick to providing new accounts to people who aren't resident at the time.

Pincher

HSBC Premier account is quite useful for international workers.


£50k minimum to qualify, then you can open as many Premier accounts as you want in other countries. Transfer of funds are free between these linked accounts.


You can open an Invest Direct trading account, and keep shares and ETFs in it. HSBC managed funds have an annual fee, 0.17% upwards, but custody of shares is free.


Everything is in one place, so you can sell some shares, and transfer the money to your Hong Kong Premier account, as opposed to sell some shares with Hargreaves Lansdowne, wait for settlement, transfer to a UK bank, etc.


The Invest Direct Plus will put the money in a separate trading account, so you have to transfer it to your current account first, whereas the Invest Direct puts the money straight into your current account. Don't ask me why, Invest Direct is harder to qualify for.


Check HSBC operates in the countries you want, they are not as Omni-present as you think.


http://www.hsbc.com/


Click on Select country under Retail Banking, not Commercial Banking.

markmetcam

Hi all,

Firstly thank you to everyone and your helpful responses! I'm very grateful.

I'm a little clearer on the risk of leaving my cash where it is, is likely to be higher than placing it in a spread of investments as opposed to into one basket.

Moving forward, I'm going to:

-Invest in a BTL in the UK, leaving a buffer
-Begin drip-feeding into a portfolio of ETL investments via my HSBC Premier account, slowly using my buffer as I earn
-Contribute to a pension scheme again

I've been making use of my cash ISA, and will make inquiries into how easily my bank can tell if I'm a relevant UK citizen or not

Many thanks again! :beer:

TCA

Archi_Bald wrote: »

They'll probably find it difficult to find a provider who lets them open a new account. Similar to people finding it very difficult/impossible to transfer an existing ISA when abroad. Although transactions are allowed by HMRC, the providers find it easier to just stick to providing new accounts to people who aren't resident at the time.

The OP already has a pension so wouldn't need to open a new one. But I agree in that a lot of these things depends on where the provider thinks you're resident. Keeping a UK address (even that of a relative) helps.

markmetcam wrote: »

I've been making use of my cash ISA, and will make inquiries into how easily my bank can tell if I'm a relevant UK citizen or not

I doubt very much whether a bank will know if you've left the UK unless you tell them. When I lived abroad I didn't contribute to an ISA, but I did transfer one at the end of its fixed rate period, which I was entitled to do. I retained a UK address though, as I would think virtually impossible otherwise.

TCA

markmetcam wrote: »

Moving forward, I'm going to:

-Invest in a BTL in the UK, leaving a buffer

Presumably you'd need to rely on someone in the UK or pay an estate agent to take care of your investment property. It would be a big job for someone or alternatively an estate agent would take a decent chunk of your income. There are special HMRC rules for non-resident landlords, so that's worth checking out:

http://www.hmrc.gov.uk/international/nr-landlords.htm

Good luck.

Pincher

The letting agent is responsible for deducting basic rate tax when it's a non-resident landlord. You then have to file a tax return to get it back.


Amusingly, HSBC Premier account holders can qualify by having a BTL mortgage, instead of the £50k asset.