Low cost fund accounts which allow dealing when resident abroad

HardCoreProgrammer

It is possible that I will need to move abroad for a period of time. I understand that I cannot add to ISA or pension while not resident in UK.

However, I would like to be able to continue to manage my accounts.

I queried with 3 different providers and they all have different policies:
Hargreaves Lansdown - cannot add new money into account, but can continue to buy/sell funds and shares using existing money
Fidelity - cannot add new money into account, can only sell funds and not buy
AEGON - cannot add new money into account, sell or buy

Does anyone know of a provider which allows me to continue trading, and charges a lower fee than Hargreaves Lansdown please?

A more rhetorical question: I wonder why the difference in policy between different providers? When I trade online with Fidelity, I have to check a box saying that I am doing so on my own volition and not under advice e.g. from IFA.

TCA

You're correct about ISAs. In respect of pensions, there used to be a rule that you could pay into a UK pension whilst abroad for up to 5 years and still get tax relief on up to £3,600 gross contribution. Worth checking out if that's still the case and I'm pretty sure you can pay in more (subject to the usual restrictions) but just don't get the tax relief.

Regarding the use of UK platforms whilst abroad, if you're paying in cash from a UK bank account, I doubt they'd bother. Not a recommendation but I believe if you're only "temporarily" abroad for a couple of years before returning to the UK, then I seem to recall you don't lose your UK residence status. Again, worth checking.

HardCoreProgrammer

Apologies for the late reply.

>> In respect of pensions, there used to be a rule that you could pay into a UK pension whilst abroad for up to 5 years and still get tax relief on up to £3,600 gross contribution.
I think this tax relief is still there (e.g. https://www.aegon.co.uk/support/faq/pension-technical/pension-contributions-for-customers-who-move-overseas-faq.html: If a customer doesn!!!8217;t have relevant UK earnings on moving abroad (i.e. they!!!8217;re being paid and taxed overseas), then they will only be able to receive tax relief on personal contributions of up to £3,600 gross pa for five full tax years following the tax year in which the person moves abroad.).
It is only interested what the "tax relief" would be, if I am not being taxed in the UK.

>> Regarding the use of UK platforms whilst abroad, if you're paying in cash from a UK bank account, I doubt they'd bother.
I am afraid that they do bother. As in my original post, Fidelity will only allow you to sell funds, not buy. Hargreaves Lansdown will allow you to add money (but not to ISA for obvious reasons) only if resident in EU countries - if you are abroad, you can buy and sell funds, but once taken out of the account you cannot add it back in.


In any case, I found that with AEGON, it is possible to buy and sell funds when abroad, so I will transfer my SIPP and ISA from Fidelity to AEGON if I have to leave the UK (but I will have to pay a higher platform fee). For my existing investments in Hargreaves Lansdown, I might just leave them where they are because I do receive good discounts ("loyalty bonus" on the funds which I hold).

grey_gym_sock

HardCoreProgrammer wrote: »

If a customer doesn!!!8217;t have relevant UK earnings on moving abroad (i.e. they!!!8217;re being paid and taxed overseas), then they will only be able to receive tax relief on personal contributions of up to £3,600 gross pa for five full tax years following the tax year in which the person moves abroad.).
It is only interested what the "tax relief" would be, if I am not being taxed in the UK.

20% ... i.e. you pay £2,880 directly into the pension, and the provider claims £720 from HMRC, which is also added into the pension. it doesn't matter that you're not paying any income tax.

max11

HardCoreProgrammer wrote: »

It is possible that I will need to move abroad for a period of time. I understand that I cannot add to ISA or pension while not resident in UK.

However, I would like to be able to continue to manage my accounts.

I queried with 3 different providers and they all have different policies:
Hargreaves Lansdown - cannot add new money into account, but can continue to buy/sell funds and shares using existing money
Fidelity - cannot add new money into account, can only sell funds and not buy
AEGON - cannot add new money into account, sell or buy

Does anyone know of a provider which allows me to continue trading, and charges a lower fee than Hargreaves Lansdown please?

A more rhetorical question: I wonder why the differences in policies between different providers? When I trade online with Fidelity, I have to check a box saying that I am doing so on my own volition and not under advice e.g. from IFA.

I was going to ask the same question. Why those difference in Policies?
I have found that II allow to operate normally on your S&S ISA too (except contributing further to it obviously), and I would like to transfer to them now, but I feel the stock indexes are too bumpy at the moment and I may lose on some recovery in the next few weeks, while the transfer happens

dunstonh

I was going to ask the same question. Why those difference in Policies?

Systems and controls along with internal compliance to cover regulatory risks as they perceive them.

I have found that II allow to operate normally on your S&S ISA too (except contributing further to it obviously), and I would like to transfer to them now, but I feel the stock indexes are too bumpy at the moment and I may lose on some recovery in the next few weeks, while the transfer happens

Although most countries do not recognise the ISA wrapper as being tax free. So, subject to tax treaties, you would be treated as holding foreign investments and taxed accordingly in your country of residence. So, ISA may not be the best option

max11

dunstonh wrote: »

Systems and controls along with internal compliance to cover regulatory risks as they perceive them.

I understand, thank you

HardCoreProgrammer

Apologies for reinstating an old thread, but I have recently been asking around and thought the information may be of reference to others:

All platforms do not allow adding new funds once address changed to abroad:

AEGON - can continue to switch or buy on existing funds
AJ Bell - will make a decision re: whether to allow the account to continue; if no then need to close or transfer, if yes can continue to switch or buy on existing funds
Fidelity - can only sell, buy or switch not allowed
Halifax - can only sell, buy or switch not allowed
Hargreaves Lansdown - can continue to switch or buy on existing funds
Intelligent Investor - can continue to switch or buy on existing funds, will be extra 3.99 charge per month
Vanguard - can only sell, buy or switch not allowed