Moving abroad (currently using AJBell)

masonic

MoneySavingHope said:

@Bostonerimus1 not sure what you mean? I will either keep my funds in AJBell or move them to another UK based platform that supports LISA and will allow me to add money to the wallet, to be sure I'll be able to pay the maintenance fee. It doesn't need to be "recognised" by the country I'm moving in. I'll just leave my money there.

Boston's point is that your investment returns could be taxed in Italy. Their marginal rate of tax of dividends is quite high as I understand it. I don't know if they treat capital gains on a disposal basis like the UK or growth basis like the US. Or whether your UK domiciled assets would be in scope while you are resident there. But you should understand the tax consequences given Italy won't recognise the UK LISA as a tax exempt account.

MoneySavingHope

oh I see now. Thanks I'll look into it.

Bostonerimus1

masonic said:

MoneySavingHope said:

@Bostonerimus1 not sure what you mean? I will either keep my funds in AJBell or move them to another UK based platform that supports LISA and will allow me to add money to the wallet, to be sure I'll be able to pay the maintenance fee. It doesn't need to be "recognised" by the country I'm moving in. I'll just leave my money there.

Boston's point is that your investment returns could be taxed in Italy. Their marginal rate of tax of dividends is quite high as I understand it. I don't know if they treat capital gains on a disposal basis like the UK or growth basis like the US. Or whether your UK domiciled assets would be in scope while you are resident there. But you should understand the tax consequences given Italy won't recognise the UK LISA as a tax exempt account.

Exactly. ISAs and LISAs don't exist as far as Italy is concerned and if they tax worldwide assets your LISA won't be tax free anymore. So you'll have to find out if/how Italy will tax your LISA and anything else you leave in the UK. Pensions should be ok as they are well covered in the usual Tax Treaty rubric. Also look into continuing UK NI when you move as that can be a big long term benefit especially if you can pay Class 2 NI.

MoneySavingHope

Thanks @Bostonerimus1 yes I've already looked into paying NIC and I will definitely keep doing it every year, but if I didn't know that would have been a great heads up, thanks.

MoneySavingHope

Do you guys think it might be worth to put some more money into my LISA now (and so take advantage of the 35% bump for the last time) and then "lock" all the money until I'm 60, or should I already find another platform that I can use from Italy and start investing there rigthaway?

MoneySavingHope

* sorry I meant 25%

masonic

I would probably favour having control of the capital. Choosing investments that must survive for 20-30 years without the possibility of changing them is not something I'd willingly commit to.

Bostonerimus1

MoneySavingHope said:

Do you guys think it might be worth to put some more money into my LISA now (and so take advantage of the 35% bump for the last time) and then "lock" all the money until I'm 60, or should I already find another platform that I can use from Italy and start investing there rigthaway?

Until you go to Italy I'd concentrate on UK pensions/SIPPs as they will continue to grow free of tax from UK and Italy until you start to make withdrawals. I would also look at investing opportunities in Italy rather than trying to continue cross border investing.

MoneySavingHope

Yes I will definitely wait until I move to Italy to find another investment platform.
If the LISA didn't have the 25% penalty on early withdrawals I would have taken all of the money and reinvested them in Italy, but I guess at this point it's quite a good chunk of money they would take from me, so I guess I would rather wait.

Bostonerimus1

MoneySavingHope said:

Yes I will definitely wait until I move to Italy to find another investment platform.
If the LISA didn't have the 25% penalty on early withdrawals I would have taken all of the money and reinvested them in Italy, but I guess at this point it's quite a good chunk of money they would take from me, so I guess I would rather wait.

You'll just have to declare your foreign dividends and gains to Italy...who knows they might not tax it, I don't know, but it's something you should find out.