Living abroad with money in the U.K

BigMouthStrikesAgain

Hi,

I need some advice! I haven’t got a clue what to do with some money I have back home.

I’m currently living in New Zealand, potentially moving back to Europe in a few years time, but not the U.K.
I have £40,000 in an account that I’m getting next to no interest on & I want to move it and get some returns. What options do I have?
I’m being told I can’t open any new U.K. accounts but I can invest in premium bonds.
I don’t want to get charged to move it to NZ only to be charged if and when I move again in the next 3-5 years.

Help!

bluefukurou

Being unable to open a new UK bank account can be a real pain for expats wishing to stash their cash. However, there is the option of NS&I, which I only recently discovered myself and it pays much better rates than the terrible UK current accounts. There’s even a moneysavingexpert article that mentions what you can do with £40k:

https://www.nsandi.com/guaranteed-income-bonds

https://www.nsandi.com/guaranteed-growth-bonds

https://www.moneysavingexpert.com/news/banking/2018/06/nsi-slashes-savings-limit-on-bonds-to-just-10000

thg

I'm sure you can open UK accounts. I'm in the same position - but in Australia - I've just opened a few ISAs. I've opened saving accounts with the bank I have a current account with. I've even organised a personal loan.

Some institutions ask for identity verification (passport, driving licence etc) but that's manageable. Have you tried opening some accounts?

Asghar

thg wrote: »

I'm sure you can open UK accounts. I'm in the same position - but in Australia - I've just opened a few ISAs. I've opened saving accounts with the bank I have a current account with. I've even organised a personal loan.

Some institutions ask for identity verification (passport, driving licence etc) but that's manageable. Have you tried opening some accounts?

Whilst living abroad, you cannot open an ISA account or contribute new money to an existing ISA (unless you pay in whilst in the same tax year that you move abroad).

It is against the rules and totally illegal as you are not tax resident in the UK.


May even be considered fraud.

EdGasketTheSecond

That's correct; ISA's cannot be opened by non-UK residents. In practice most other accounts cannot be opened either as being UK resident is a requirement. However you do seem to be able to buy NS&I non-ISA products who don't seem to care about residency.

ColdIron

thg wrote: »

I'm sure you can open UK accounts. I'm in the same position - but in Australia - I've just opened a few ISAs

So you made a fraudulent declaration that you were resident in the UK? Probably not a course of action for everybody

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

Asghar

EdGasketTheSecond wrote: »

However you do seem to be able to buy NS&I non-ISA products who don't seem to care about residency.

Non-ISA means you are subject to UK tax so it does not matter so much and brings in money.

An ISA is a Tax Free savings vehicle where you can save/invest up to £20k per year and is a perk only available to UK residents.
If you have an ISA open before you move then you can leave it open but not pay in any more money outside of the tax year that you started to live abroad.

It must be fraud to open a new ISA whilst living abroad, you would have to lie about your residency status.

thg

ColdIron wrote: »

So you made a fraudulent declaration that you were resident in the UK? Probably not a course of action for everybody

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

I'm resident in the UK for tax purposes, per your link. Assumed the OP was too, clearly erroneously.

Asghar

thg wrote: »

I'm resident in the UK for tax purposes, per your link. Assumed the OP was too, clearly erroneously.

Resident in the UK for tax purposes means actually physically living in the UK, not Australia as you state.

How can you assume the OP was too when they have stated that they are currently living in New Zealand, you stated that you are in the same position but in Australia.

alewin

thg wrote: »

Some institutions ask for identity verification (passport, driving licence etc) but that's manageable. Have you tried opening some accounts?

Your sentence clearly implies that you were not in the UK when you opened the accounts.

Therefore a clear fraudulent action and depriving the Government and UK Tax payer of tax on the interest received and/or Capital Gains Tax on future gains.

Are the IP addresses logged on this forum.

TBC15

I may be wrong but I'm sure expats are exempt from CGT on shares/funds.