Bank Accounts and Savings whilst abroad

gazzaaaa_2

I've had a bank and savings in the UK now for many years and I'm a UK citizen. However, I have now lived abroad for over 3 years now and I'm just about to sell my house and have a lot to save.

I'll have no home address in the UK but my mother inlaw has allowed me to use hers. Do banks/building societys allow you to live abroad and save in the UK, do they check your residency? Can I use either my address abroad or my mother in-laws address? I've seen terms and conditions saying "offer restricted to UK residents only". Is this always the case?

In addition I've seen the article stating that 35,000 should be the maximum in any one bank hence what would you recommend to be the best 3 savings account for me in my situation? Note that as I'm abroad I'm a non tax payer.

Many thanks

Gazzaa

Jonbvn

As a non-resident for tax purposes, you cannot open an ISA. Since you have a UK address with your MIL, you should be able to open most "normal" savings accounts.

I would recommend that you complete form R101 to get your interest paid gross. However, you may be liable for tax on this in your country of residence.

ATF101

Jonbvn wrote: »

I would recommend that you complete form R101 to get your interest paid gross. However, you may be liable for tax on this in your country of residence.

Do you know if this applies to temporary (3 years) USA residency.

Jonbvn

ATF101 wrote: »

Do you know if this applies to temporary (3 years) USA residency.

Generally, if you are out of the UK for a whole tax year then it should apply.

You're not David Beckham are you?:p

Cook_County

Unless you have a J-1 or F-1 visa, the United States charges tax on your worldwide income and gains as a resident. There may also be State taxes payable. You must annually file form TD F 90-22.1 with the US Treasury as well.

gazzaaaa_2

I'm getting all my interest paid gross and pay all the applicable taxes in my country of residence in relation to these savings. And I'm aware that if I earn more than 5,435 pounds interest in 2007/2008 tax year I'll have to pay tax on any interest above the tax allowance on the interst in these UK banks. What I need to know is which are the 4 best savings accounts in the UK which allow non residents to pay into.

I'm thinking of going for First Direct Everyday e-saver account (5.13% gross) (perhaps placing 300pounds a month into their regular saver account (8% gross). Second choice is the Coventry Building Societies Net Save Instant III (5.15% gross). Both allow instant access. I need a couple more accounts to spread out the money into less than 35,000 amounts.

I've also found Bradford and Bingleys International eIncome account that pays (5.8% gross) for Non UK residents such as myself and Nationwide International Base Rate Tracker Premium account (6.3% gross - for the first year). But the downfall of these accounts are that there'll be much less protection if any - as this risk has got to be incredibaly low I'll take it.

Any other suggestions ideally they should be web based for ease of access and perferable monthly interest (I just prefer it that way).

Regards

Gazzaa.

Jonbvn

gazzaaaa wrote: »

I'm getting all my interest paid gross and pay all the applicable taxes in my country of residence in relation to these savings. And I'm aware that if I earn more than 5,435 pounds interest in 2007/2008 tax year I'll have to pay tax on any interest above the tax allowance on the interst in these UK banks. What I need to know is which are the 4 best savings accounts in the UK which allow non residents to pay into.

If you are a non-resident for the UK then you do not have to pay any tax there. The limit you have quoted does not apply??

If you do not have a UK address, then you may find that most of the banks/BS will not allow you to open an account.

However, you can consider saving offshore. A&L are currently offering 6.51% on their esaver offshore, which I believe is a market leading rate.
http://www.alil.co.im/default.aspx?bhcp=1

gazzaaaa_2

I'm pretty sure that even though I'm a non resident I still have to pay tax on anything I earn in the UK, which includes interest from banks.

Jonbvn

gazzaaaa wrote: »

I'm pretty sure that even though I'm a non resident I still have to pay tax on anything I earn in the UK, which includes interest from banks.

Sorry but that is not true. I was an expat for many years. I believe what you are thinking about is if you are a non-resident landlord.

You need to fill in form R105 from HMRC.

Individuals who are not ordinarily resident may register with their building society, bank or other deposit taker to receive interest without the deduction of tax by completing form R105.
http://www.hmrc.gov.uk/individuals/fgcat-nonresidentlandlords.shtml

http://www.hmrc.gov.uk/forms/r105.pdf

gazzaaaa_2

I agree that I don't have to pay tax on my savings. However when you have so much to save as in my case the savings interest exceeds the allowance and unfortunately I'd have to pay 20% tax on any amount over the allowance.