Can'you open General Investment Account if you pay tax outside UK?

amittal6

Hi, I am planning to open Vanguard General Invesmtent account. I stumbled upon a condition stating that if you pay tax outside UK, then you can't!

My question is for all practical purposes we pay taxes & resident in UK and if we have some investments outside for which you pay minimum tax in other country, why you can't open general inv account here in UK? Is that somewhere clearly defined?  I heard it is more of US related thing but not for other countries.

Is it vanguard related constraint or other general inv account providers like HL or II also do not allow? Appreicate your help if someone could advise me.

[Deleted User]

From Vanguard (from their T&C) 
Your Account may be restricted if your residency or tax status change.
This means that you may not be able to make new investments, and that we will only provide administrative and record-keeping services in return for the applicable Charges.
For your Pension Account this may continue until you become eligible to take Benefits from the Scheme. For an ISA or a General Account only, we may alternatively sell your Vanguard Funds and close your Account if you cease to be a UK resident.
I guess the real question is - where are you Tax Resident? The UK? If so then I don't see this being a problem
Of course some people will pay tax outside the UK (Spanish property rentals) but they are not Tax resident in Spain.

amittal6

Deleted_User said:

From Vanguard (from their T&C) 
Your Account may be restricted if your residency or tax status change.
This means that you may not be able to make new investments, and that we will only provide administrative and record-keeping services in return for the applicable Charges.
For your Pension Account this may continue until you become eligible to take Benefits from the Scheme. For an ISA or a General Account only, we may alternatively sell your Vanguard Funds and close your Account if you cease to be a UK resident.
I guess the real question is - where are you Tax Resident? The UK? If so then I don't see this being a problem
Of course some people will pay tax outside the UK (Spanish property rentals) but they are not Tax resident in Spain.

Appreciate your response. That's the exact what I was looking for.

Yes I am tax resident of UK and have some investments outside in India for some deposits there. Therefore it seems as long as I am in UK, paying taxes here primarily, I can hold these GIA and ISAs. But if moved out, I need to close them. Am I interpreting right?

[Deleted User]

amittal6 said:

Deleted_User said:

From Vanguard (from their T&C) 
Your Account may be restricted if your residency or tax status change.
This means that you may not be able to make new investments, and that we will only provide administrative and record-keeping services in return for the applicable Charges.
For your Pension Account this may continue until you become eligible to take Benefits from the Scheme. For an ISA or a General Account only, we may alternatively sell your Vanguard Funds and close your Account if you cease to be a UK resident.
I guess the real question is - where are you Tax Resident? The UK? If so then I don't see this being a problem
Of course some people will pay tax outside the UK (Spanish property rentals) but they are not Tax resident in Spain.

Appreciate your response. That's the exact what I was looking for.

Yes I am tax resident of UK and have some investments outside in India for some deposits there. Therefore it seems as long as I am in UK, paying taxes here primarily, I can hold these GIA and ISAs. But if moved out, I need to close them. Am I interpreting right?

Yes - but if you move and become tax resident in the EEA (thats all I know about) - then you can continue with other Providers but not Vanguard if you want to trade. (I have asked AJ Bell, ii and HL and all say yes)

amittal6

Thanks for your response. I wrote to Vanguard and clarified. They confirmed back that if I am paying taxes outside of UK, then I can’t open the GIA. 

Hence unfortunately I need to close vanguard account. 

Is there any recommendation a good alternative for GIA?