Lifetime ISA withdrawal when non-resident over 60

mugston

As I understand, if I hold a LISA and cease to be a UK resident, I cannot continue to add to it, but can leave it where it is.

If I leave it where it is until I am 60 and then withdraw, are there any penalties on the UK side?

For example, if one were a tax resident in a country with no CGT at the time of withdrawing (and they are over 60), would they be subject to any taxation or fees?

Thanks.

masonic

It would make no difference from the perspective of the UK whether or not you were resident at the time of withdrawal. Hard to comment on how an unnamed third country might treat it.

Hoenir

mugston said:

For example, if one were a tax resident in a country with no CGT at the time of withdrawing (and they are over 60), would they be subject to any taxation or fees?

Might be taxed as income. The probability is that the gain is unlikely to be tax free.

poseidon1

mugston said:

As I understand, if I hold a LISA and cease to be a UK resident, I cannot continue to add to it, but can leave it where it is.

If I leave it where it is until I am 60 and then withdraw, are there any penalties on the UK side?

For example, if one were a tax resident in a country with no CGT at the time of withdrawing (and they are over 60), would they be subject to any taxation or fees?

Thanks.

As far as am aware no other countries outside the UK ( including Ireland!) recognise the tax free status of UK ISAs, so once one becomes non uk tax resident, there is the potential for annual income tax and cgt on the underlying movements within the isa as far as your new foreign country of residence is concerned. 

 In other words the isa is treated no differently from a taxable general investment account in those circumstances.