ISAs, investments and moving abroad

MoneyPete_2

Hi all,

I am thinking of leaving the UK in about a year's time and would like to clarify some things about my Stock ISA/ Investment accounts.

From what I gathered:

- I will be able to keep my ISA account but won't be able to contribute to it anymore after I leave.
- Any capital gain after I leave will be taxed in the country where I move to, so the ISA will not provide any tax shelter any more.

Is that correct? Do EU countries tax you on an unrealized capital gain or only on realized CG?

If my understanding is correct than it doesn't make too much sense for me to keep my ISA, or at least to keep contributing to it now, does it? (Since I'll lose the tax shelter shortly.)

If you are taxed only on realized capital gain, would that make sense to transfer my ISAs to my ordinary investment account, move to a place like Monte Carlo or Dubai (in theory! ) and then realize all my capital gains on that account?

Thanks a lot!
MoneyPete

Jonbvn

You are correct about the UK rules for ISA holders moving abroad.

Regarding the tax status of the ISA in your new country of residence it really depends on which country. Generally speaking most EU countries and the US will not recognise the tax-free status.

Cook_County

I agree 100% with Jonbvn - just to add that in some countries (eg Australia & the US) some kinds of investments wrapped in ISAs are taxed at higher rates than regular capital gains.