Eligible for ISA?

I am currently working abroad on an international contract that ends in July. I am starting a different international job in September and am wondering whether I can open an ISA for the brief time I will be resident in the UK before I leave again? I do return frequently to the uk but am not currently a tax payer. Thanks

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  • masonic
    masonic Posts: 23,062
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    Your main hurdle will be the providers' own eligibility criteria and KYC checks, particularly address history. Using an institution where you already hold accounts will give you your best chance. Can't say I understand why you would want to open an ISA given your circumstances (or in general if you are referring to a cash ISA).
  • 03mkk
    03mkk Posts: 2 Newbie
    Thanks - I have maintained a ‘permenant adddress’ and have a UK bank account whilst away for the last 3 years. I am looking to have some kind of savings account rather than just a current account as I regularly send money home from abroad. If a cash ISA is not the best idea can I ask what other options there are? Thanks again!
  • masonic
    masonic Posts: 23,062
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    edited 31 March 2019 at 4:33PM
    Cash ISAs tend to pay lower rates than the equivalent normal savings accounts.

    If you have a permanent UK address and current account then the world is your oyster as far as savings accounts go, MSE article here: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

    Presumably this is money that you don't need to be able to access in the short term, so fixed rate accounts could be of value. You might find Raisin of particular interest as it allows you to save into multiple accounts within its marketplace without having to fill out a full application form each time, so could be used while you are away, and the accounts on offer have been competitive since it started up. Perhaps open up a Marcus account alongside.

    Edit: Pretty much all (if not all) of these accounts, ISA or otherwise, would require you to be UK resident when you open them. Although you state there's a brief time you'll be 'resident in the UK', I don't think you will qualify as being UK resident during that time.
  • Mr.Saver
    Mr.Saver Posts: 521
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    AFAIK, ISA is not tax exempted if you are a tax resident in another country. You will have to follow your residency country's tax rule and need to treat the ISA as a normal savings account. This means you may need to pay tax on the ISA interest as foreign income.
  • badger09
    badger09 Posts: 11,128
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    masonic wrote: »
    Cash ISAs tend to pay lower rates than the equivalent normal savings accounts.

    If you have a permanent UK address and current account then the world is your oyster as far as savings accounts go, MSE article here: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

    Presumably this is money that you don't need to be able to access in the short term, so fixed rate accounts could be of value. You might find Raisin of particular interest as it allows you to save into multiple accounts within its marketplace without having to fill out a full application form each time, so could be used while you are away, and the accounts on offer have been competitive since it started up. Perhaps open up a Marcus account alongside.

    Sadly, I don't think that is true. Most savings account providers require that you are UK resident for tax purposes, in order to open an account. Having a UK address does not meet this requirement.
  • masonic
    masonic Posts: 23,062
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    edited 31 March 2019 at 4:33PM
    badger09 wrote: »
    Sadly, I don't think that is true. Most savings account providers require that you are UK resident for tax purposes, in order to open an account. Having a UK address does not meet this requirement.
    Yes, it seems I've overlooked the UK residency requirement (or at least read something into the mention of being briefly 'resident in the UK' that probably isn't true). OP has pretty much zero chance of opening a UK savings account anywhere that would be worthwhile if only spending up to 2 months in the UK between jobs abroad.
  • badger09
    badger09 Posts: 11,128
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    OP take a look at the NS&I savings products. They're not market beating rates, but some of them are available to you as a non UK tax resident.

    https://www.nsandi.com/our-products
  • Michael1010
    Michael1010 Posts: 14 Forumite
    Currently in the same situation. You will have to do the statutory residency test and see how many 'ties' you have. I think owning a house in the UK + family ties + 30 days would maintain your status. I f you currently have an open ISA you may keep it untill it matures however you may not open another - but haven't actually heard of anyone being stopped from doing so. NS&I however do offer some okay alternatives though for those who no longer have residency
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