ISA contributions for UK employee living abroad

simfield

Hi there,

I am a UK employee, currently living in the UK, so definitely a resident and eligible for ISA contributions.

However, since my job is computer-based and I can work from anywhere in the world, as long as there is internet, I want to move abroad permanently.

My question is: Given the fact that my employer and employment is UK based (and I will be paying all applicable taxes as everybody else), can I still make ISA contributions despite the fact that I will be living abroad for most of the time (let's say 11 months)? Also, I am an EU national.

I feel like, I should be able to, but I am wondering if anyone has more input on that

Thanks

Alexland

You would need to be a UK resident for tax purposes:

https://www.gov.uk/tax-foreign-income/residence

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

Also if you become a resident of another country then they are unlikely to consider your existing ISA as tax free under their rules.

Alex

simfield

Thanks for the links and your advice Alexland,

I guess, what confuses me is the fact that I am paying taxes in the UK and I will continue doing so while living in other countries (so I should be able to benefit from ISA allowances). There should be an option for people who work remotely but may be there isn't.

antrobus

simfield wrote: »

Thanks for the links and your advice Alexland,

I guess, what confuses me is the fact that I am paying taxes in the UK and I will continue doing so while living in other countries (so I should be able to benefit from ISA allowances). There should be an option for people who work remotely but may be there isn't.

No. I believe that if you move abroad you will become a non-resident and no UK tax will be due.

This seems to confirm my belief.
https://www.accountingweb.co.uk/any-answers/working-for-a-uk-company-while-living-abroad

As always, you should take proper advice. At least speak to your company payroll.

Alexland

Yes even if you work for a UK employer they would eventually see you as an overseas worker and you would be subject to your local tax regime.