Saving in the UK as a non resident

tom37

I just sold my flat and have 80,000 to save. I have been resident in Ireland for 2 years. Now that STG has dropped so much against the € I will have to save for at least 6 months!!

Any of the high interest a/c's I looked at say you must be resident in the UK - does anyone know why and how to get around it ( I have an c/a with Abbey still)

Thanks Tom

Jonbvn

The best way to get around this is to save "offshore" in either Jersey or IOM. However, most of the offshore accounts require quite large opening balances (£5k+). Note that withholding tax will be deducted from your interest, as per EU directive.

seven-day-weekend

I am resident in Spain and have had no trouble opening savings accounts in the UK.

However, they were with banks with whom I already have a current account . I also still have a house in the UK, although these bank accounts are now registered to my Spanish address.

Be aware that some organistions will not register a foreign address, West Bromwich Building Society wanted my husband to close his account and would not register the Spanish address, so he told them to keep it registered to our UK one, where our son still lives. LTSB, Co-op and Staffordshire/Portman BS had no problem with it however.

So I would see what Abbey have to offer!

dunstonh

The new MiFID rules apply to banks as well as IFAs. Basically any financial services firms. It only applies to new business applications.

tom37

Thanks for that

What does witholding mean who does the tax go to ? Have you invested offshore ?

tom37

Thanks what are mifid rules ..is it to do with money laundering??

Jonbvn

tom37 wrote: »

Thanks for that

What does witholding mean who does the tax go to ? Have you invested offshore ?

I have worked as an expat, so yes I have saved offshore. All the big banks & BS are available in Jersey/IOM. The 15% withholding tax goes to the local tax authority. They retain 25% of the tax, and forward the remaining 75% to the EU member states.

More info here.

dunstonh

tom37 wrote: »

Thanks what are mifid rules ..is it to do with money laundering??

Its not to do with money laundering. Its to do with the offering of financial services and financial products to non residents.

To offer cross border services the firm has to opt into an increased regulatory regime and a more expensive process. Whilst the impact to larger firms isnt as much as smaller firms, some large firms have chosen to not offer their products to non-residents. Mainly those that didnt have much business in that area to begin with. The rules came into force 1st Nov 07.