Moving abroad - savings rates and tax

MacPingu1986

OP -  The UK personal allowance should only relevant if you *also* plan to remain tax resident in the UK after moving to the new country. Are you? This dual residency would only usually arise if you're still spending a substantial amount of time in the UK each year post your move date.

If you're not tax resident in the UK then your bank account interest won't be taxed in the UK, it'll be taxed according to the tax laws of the jurisdiction you're now tax resident in. ISAs only have tax exempt status in the UK so any ISA income will usually have to be declared and relevant income/capital taxes paid.

juw8e7

PRAISETHESUN said:

juw8e7 said:

juw8e7 said:

Thanks. So, will a British non-resident still receive the standard personal tax allowance of £12,570 or not?

Any recommendations for good tax advisors qualified in this field would be greatly appreciated!

The gov.uk website seems useless in terms of getting a clear answer on this. Even after filling out pages and pages of questionnaires etc.
This outfit seem to say yes on the matter but its very unclear and I am getting mixed info. regarding this.
https://www.litrg.org.uk/tax-nic/income-tax/tax-allowances

That specific question might be better placed on the tax board.

Based on my experience with navigating tax treaties however, you usually only get a personal allowance if you're a resident of that country for tax purposes. I would assume that any personal allowance would be granted in the foreign country, but not in the UK if you're classed as non-resident. You should be able to claim tax relief on the UK tax you pay to HMRC in the foreign country however, so you won't end up getting taxed twice.

I will do that. Thanks.
It does state that if youre a British national then you will still get PSA. But, still seeking clarity on that.

juw8e7

eskbanker said:

juw8e7 said:

Ive had enough and Im planning on moving abroad this year.

You still haven't said where you're planning to move to, but why do you seem so keen to keep savings in the UK if you're not going to be living here anymore?

eskbanker said:

juw8e7 said:

Ive had enough and Im planning on moving abroad this year.

You still haven't said where you're planning to move to, but why do you seem so keen to keep savings in the UK if you're not going to be living here anymore?

Singapore or Japan.
Insurance!

juw8e7

MacPingu1986 said:

OP -  The UK personal allowance should only relevant if you *also* plan to remain tax resident in the UK after moving to the new country. Are you? This dual residency would only usually arise if you're still spending a substantial amount of time in the UK each year post your move date.

If you're not tax resident in the UK then your bank account interest won't be taxed in the UK, it'll be taxed according to the tax laws of the jurisdiction you're now tax resident in. ISAs only have tax exempt status in the UK so any ISA income will usually have to be declared and relevant income/capital taxes paid.

It states that even if youre non resident BUT are a British national then you still receive the PSA. 

friolento

juw8e7 said:

MacPingu1986 said:

OP -  The UK personal allowance should only relevant if you *also* plan to remain tax resident in the UK after moving to the new country. Are you? This dual residency would only usually arise if you're still spending a substantial amount of time in the UK each year post your move date.

If you're not tax resident in the UK then your bank account interest won't be taxed in the UK, it'll be taxed according to the tax laws of the jurisdiction you're now tax resident in. ISAs only have tax exempt status in the UK so any ISA income will usually have to be declared and relevant income/capital taxes paid.

It states that even if youre non resident BUT are a British national then you still receive the PSA. 

If you are not resident in the UK for tax purposes, none of the UK income tax allowances will apply to you. For the avoidance of doubt, income tax allowances include the PSA as well as ISA interest.

As has already been stated, any UK interest will be paid without UK income tax deduction, and you will be subject to the tax legislation in your country of residence.

juw8e7

friolento said:

juw8e7 said:

MacPingu1986 said:

OP -  The UK personal allowance should only relevant if you *also* plan to remain tax resident in the UK after moving to the new country. Are you? This dual residency would only usually arise if you're still spending a substantial amount of time in the UK each year post your move date.

If you're not tax resident in the UK then your bank account interest won't be taxed in the UK, it'll be taxed according to the tax laws of the jurisdiction you're now tax resident in. ISAs only have tax exempt status in the UK so any ISA income will usually have to be declared and relevant income/capital taxes paid.

It states that even if youre non resident BUT are a British national then you still receive the PSA. 

If you are not resident in the UK for tax purposes, none of the UK income tax allowances will apply to you. For the avoidance of doubt, income tax allowances include the PSA as well as ISA interest.

As has already been stated, any UK interest will be paid without UK income tax deduction, and you will be subject to the tax legislation in your country of residence.

friolento said:

juw8e7 said:

MacPingu1986 said:

OP -  The UK personal allowance should only relevant if you *also* plan to remain tax resident in the UK after moving to the new country. Are you? This dual residency would only usually arise if you're still spending a substantial amount of time in the UK each year post your move date.

If you're not tax resident in the UK then your bank account interest won't be taxed in the UK, it'll be taxed according to the tax laws of the jurisdiction you're now tax resident in. ISAs only have tax exempt status in the UK so any ISA income will usually have to be declared and relevant income/capital taxes paid.

It states that even if youre non resident BUT are a British national then you still receive the PSA. 

If you are not resident in the UK for tax purposes, none of the UK income tax allowances will apply to you. For the avoidance of doubt, income tax allowances include the PSA as well as ISA interest.

As has already been stated, any UK interest will be paid without UK income tax deduction, and you will be subject to the tax legislation in your country of residence.

Strange how they state otherwise on their site.
Anyway, so for the time being just stick it in the highest rate account or S&P and worry about it when I need to?

juw8e7

friolento said:

juw8e7 said:

MacPingu1986 said:

OP -  The UK personal allowance should only relevant if you *also* plan to remain tax resident in the UK after moving to the new country. Are you? This dual residency would only usually arise if you're still spending a substantial amount of time in the UK each year post your move date.

If you're not tax resident in the UK then your bank account interest won't be taxed in the UK, it'll be taxed according to the tax laws of the jurisdiction you're now tax resident in. ISAs only have tax exempt status in the UK so any ISA income will usually have to be declared and relevant income/capital taxes paid.

It states that even if youre non resident BUT are a British national then you still receive the PSA. 

If you are not resident in the UK for tax purposes, none of the UK income tax allowances will apply to you. For the avoidance of doubt, income tax allowances include the PSA as well as ISA interest.

As has already been stated, any UK interest will be paid without UK income tax deduction, and you will be subject to the tax legislation in your country of residence.

So I will become a non resident after over 182 of leaving the UK or whatever it is and from there on in I will just declare any UK savings interest when filing a tax return there, correct?

DullGreyGuy

Given you haven't even decided where you are going yet no one can advise how the tax regime of your future country of residency works for overseas income/interest. You'd probably be better off looking at immigrant focused forums in the potential target countries and asking them. 

Increasingly banks are not comfortable having overseas customers as whilst the banking group may have a license to operate in say Japan the Bank UK Ltd that is your personal bank doesn't and as such could be breaking local licencing legislation by providing services to a Japanese resident without a Japanese banking licence. 

As a consequence many who go abroad (refuse to call them "ex-pats" when we dont use the same term for those that come here) neglect to tell their bank and find some way for post to still be delivered to a UK address. This can lead to inevitable problems. Before 2016 a family member did this but was accepting of the 20% tax being incorrectly taken -v- their perceived benefit of retain a UK bank account... have lost touch since then when interest reverted to being paid gross.