HTB ISA eligability if I'm a 'non resident alien in the US

thejinx6

Hi,

I'm very interested in opening a help to buy ISA and qualify in all aspects to do so (1st time buyer etc etc). One problem is, I'm currently working in the USA for 2 years on a non immigrant visa (J1) and don't know if that makes me ineligible to open one. I am in the US temporarily (ie only 2-3 years) and will be returning home after that when I would be looking to buy a house at some point. Does anyone know if I qualify to open an ISA or HTB ISA with my 'non immigrant alien' status in the US?

Its as clear as mud when I google it but I think it would be ok but thought I would check first before getting myself into trouble!

Any advice would be helpful!

Thanks!

TCA

ISAs are for UK residents only:

https://www.gov.uk/individual-savings-accounts/overview

dunstonh

Even if you could have an ISA (or already had one), it woudlnt be any use to you as the US taxation system doesnt recognise ISAs as tax free.

thejinx6

Thanks for the responses guys - appreciate it. I understand that ISAs are for UK residents only but I was told that I am not counted as a US resident so thought I may still qualify as a UK resident but judging by your responses, it looks like its not something I am eliglible for.

I do not pay any US tax because of my non immigrant alien status which again suggested to me that I may be eligible for an ISA.

Never mind,

Was worth asking - thanks for your help.

Archi_Bald

HMRC can tell you whether you are classed as a UK resident http://tools.hmrc.gov.uk/rift/screen/SRT+-+Combined/en-GB/summary?user=guest

MARTYM8`

Where are you resident for tax purposes. That is HSBC's definition.

http://www.hsbc.co.uk/1/2/savings-accounts/help-to-buy-isa

thejinx6

Hmmm I tried the HMRC tax residence checker and it seems to be down for me but it looks like that will be a good way to tell.

As far as I am concerned, I am a UK resident for tax purposes as I dont pay US tax - that is my opinion tho rather than being officially told and indeed where my confusion lies...

All very good comments - appreciate this, thanks

atush

if you are not a UK resident/taxpayer, then no isa for you. Period.

If you intend to return, save your money in cash or investments under US tax laws and transfer to an isa on your return.

Rich2808

Yes and don't buy a field while in the US with a barn in it as owning land containing a building you could live in rules you out on the small print even if you have never actually owned a house or flat!

themanfromamarillo

Assuming your J1 was issued when you were a UK resident then by not paying tax in the US you are invoking the UK-US tax treaty. I'm guessing the best bet would be to look in there to see what the treaty says about your tax residence status.

bowlhead99

My 2 cents: presuming you don't want to pay UK taxes on your worldwide income then you would not want to be classed as a resident of the UK.

The fact that under the tax treaty mentioned above, you might not be paying US taxes because (for example) you're just a visitor who is there to carry out public-interest research, does not mean that the UK would ignore the fact that you have a bunch of overseas earned income (and maybe savings income etc) which probably exceeds the standard £10,600 income tax allowance that everyone here gets.

So, you would probably be best to avoid filling out a form to declare to HMRC that you are in fact a UK resident this tax year, in an effort get your hands on the HTB bonus some years down the line?

Obviously if you barely have any income in the US and are living on a shoestring then you might not mind paying UK tax on all your income because it would be below your annual allowance. You can see if you meet the UK statutory residence tests here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/458559/RDR3_govuk_hyperlink__updated_078500.pdf