Claiming tax back - keep ISA/HTB?

vouch0r

Hi all,

i will be very soon emigrating for a minimum of 12 months so as its half way through a tax year would like to claim my tax back but just worried if i do this manually there may problems with me keeping my HTB ISA, LISA etc? would i still get tax free status on my savings too?

thanks!

eskbanker

As per https://www.gov.uk/individual-savings-accounts/if-you-move-abroad-or-die:

If you open an Individual Savings Account (ISA) in the UK and then move abroad, you can’t put money into it after the tax year that you move (unless you’re a Crown employee working overseas or their spouse or civil partner).

You must tell your ISA provider as soon as you stop being a UK resident.

However, you can keep your ISA open and you’ll still get UK tax relief on money and investments held in it.

You can pay into your ISA again if you return and become a UK resident (subject to the annual ISA allowance).

However, I don't know what you mean by "claiming tax back", what tax are you referring to and what gives you the impression that you can claim it back if you emigrate halfway through a tax year (or at any other time)?

vouch0r

Hi,

Was looking to claim overpaid tax back, so money that's been paid as tax but over the threshold and dues as i am leaving half way through a tax year? So threshold is 11k income during that tax year for example 12k.. Tax paid 5000, tax actually owed 200. Taxes refund due.

So if I do continue paying into the htb what's the risk of that? As I'm looking to get a ftb mortgage when I get back...

eskbanker

vouch0r wrote: »

So if I do continue paying into the htb what's the risk of that?

You don't - as per the ISA rules quoted earlier you can only pay into an ISA up to the end of the tax year in which you leave. You can't have your cake and eat it too - if you're declaring to HMRC that you're emigrating (and reclaiming some income tax accordingly), you can hardly try to claim to them that you're still tax-resident in the UK for ISA purposes!