Not paying tax in the UK savings

Acunningham658

I’m about to move over seas for a few years with work. I am aware because I will not be paying tax here in the uk and that I will not get the same benefits on interest rates. However if I was to open an instant savers account would I still be effected with a lower interest rate because I won’t be in the uk. I have been advised to keep all my uk accounts and all my accounts currently have the address of my parents which is in the uk?

steampowered

You could still pay in to your existing accounts while you are abroad. The only thing you can't pay into is ISAs.

To be honest the interest rate on most instant savings accounts is so low it's not worth bothering with. Natwest pay 0.2% on balances up to £25k !

It is certainly worth keeping a current account in the UK, to avoid faffing around when you get back, and to make it easy to deal with any bills etc. you need to pay in the UK.

Remember to use a transfer service to switch currencies. Do not use your bank to change large amounts of one currency into another, the banks will offer you a very poor exchange rate as well as adding fees.

eskbanker

Acunningham658 wrote: »

I’m about to move over seas for a few years with work. I am aware because I will not be paying tax here in the uk and that I will not get the same benefits on interest rates. However if I was to open an instant savers account would I still be effected with a lower interest rate because I won’t be in the uk.

Not sure exactly what you mean about "not get the same benefits on interest rates" - are you referring to ISAs being UK-only, or the UK personal savings allowance, or maybe that wherever you're going pays worse interest in local accounts?

I can't see how a new savings account helps any of these so perhaps you could clarify what you have in mind?

Bear in mind that, dependent on where you're going, your tax liabilities there may well include paying local taxes on your global income, including anything earned in the UK during that time, such as interest.

Acunningham658 wrote: »

I have been advised to keep all my uk accounts and all my accounts currently have the address of my parents which is in the uk?

Some Ts & Cs may insist on you notifying the provider that you're changing address, i.e. you'd be obliged to disclose that you're abroad, although nominating a UK correspondence address (without falsely claiming you actually live there) may be acceptable. Do you plan to use any of your UK accounts while overseas? Obviously if you do then it'll be clear from the usage pattern that you're no longer in the UK....