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not ordinarily resident in UK 4 tax purposes + ISA
spanna_2
Posts: 2 Newbie
::)Hi
This is a fairly technical question . I didn't spend more than ninety days in the UK last tax year and plan to return in August 2005, so for last and this tax year I am classed as not ordinarily resident in the UK.
As I am not paying tax, does this mean I can't start an ISA. ??? Had I started one before I left, would I have been able to make a contribution into it ??? I am planning a 3 week holiday to the Uk around Christmas, could I start one up then ???
I have some savings that I am trying to make grow! so any advice as to what I can do as I am abroad would be much appreciated!
thanks ;D
This is a fairly technical question . I didn't spend more than ninety days in the UK last tax year and plan to return in August 2005, so for last and this tax year I am classed as not ordinarily resident in the UK.
As I am not paying tax, does this mean I can't start an ISA. ??? Had I started one before I left, would I have been able to make a contribution into it ??? I am planning a 3 week holiday to the Uk around Christmas, could I start one up then ???
I have some savings that I am trying to make grow! so any advice as to what I can do as I am abroad would be much appreciated!
thanks ;D
0
Comments
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I believe you are only eligible for an ISA if you are a UK resident in that tax year. As you going to have been abroad for more than one complete tax year and have spent less than 91 days in the country then I don't think you qualify for this year's ISA allowance. Sorry
2012 money saving challenge:
Saved: £16,222
Target: £12,0000 -
I don't know the answer to your question, but I do know there is a difference between "resident" and "ordinarily resident." You can be "resident" but not "ordinarily resident." I don't know what constitutes the difference.
You mentioned "ordinarily resident" while "bonecold1" said "resident". So I would not assume without further information that the answer applies to you, though my guess would be it does.I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
I wouldn't class this as definitive but I think
To be resident in the UK for a tax year you have to be present in the UK for 183 days or more in a tax year.
To be ordinarily resident you have to make substantial annual visits to the UK of 91 days or more for four or more consecutive years (including that tax year)
As you are neither resident or ordinarily resident I don't think you qualify. Maybe worth a try though.2012 money saving challenge:
Saved: £16,222
Target: £12,0000 -
why don't you apply for the ISA.
wORST THAT CAN HAPPEN IS THAT YOU'LL HAVE TO PAY TAX ON THE INTERESt.0 -
you have to resident and ordinarily resident. I did a quick read of an ISA T&C to confirm that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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;DThank you DD for checking that out for me. I'm actually in Japan at the moment, and although the Japanese yen is very strong - there seems to be no high interest saving accounts available here! aswell as the mountain of paperwork it would involve!
Thanks again0 -
Why don't you just open a regular savings account, since you aren't paying tax? Cahoot pays 5.5%, which is more than any ISAs at the moment -- and almost certainly more than you could get anywhere in Japan, with their nil base rate right now.I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0
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