Non UK Resident - Can I have an ISA?

shandyf · 24 September 2008 at 8:42AM

Hi
I emigrated earlier this year but still work for a UK company paying income tax to the UK every quarter.
I spoke to my bank the other day and they told me I couldn't apply for an ISA because I was no longer UK resident. I argued about my tax position but they wouldn't back down.

Who is correct?

Thanks

Shands

Jonbvn · 24 September 2008 at 8:57AM

Your bank is correct.

You should be able to claim the UK tax you are paying back.

shandyf · 24 September 2008 at 9:15AM

Thanks for your response jonbvm.....
Unfortunately my position is a bit more complicated. I'm a director of a UK limited company but my trading address is abroad. The HMRC have advised that I must make a tax return every year and the tax I pay in my foreign country will be offset against the tax I pay to the UK.
So, by all accounts, I am still seen as a UK resident for all except my NI contributions.
Would this change your view?

Thanks again!

Baldur · 24 September 2008 at 9:21AM

shandyf wrote: »

Thanks for your response jonbvm.....
Unfortunately my position is a bit more complicated. I'm a director of a UK limited company but my trading address is abroad. The HMRC have advised that I must make a tax return every year and the tax I pay in my foreign country will be offset against the tax I pay to the UK.
So, by all accounts, I am still seen as a UK resident for all except my NI contributions.
Would this change your view?

See HMRC information HERE:

Moving abroad You can only subscribe to an ISA if you are resident and ordinarily resident in the UK for tax purposes. Overseas residents are not eligible to apply for an ISA. If you are unsure about this, call our Centre for Non-Residents on
0845 070 0040 (UK) or

44 151 210 2222 (from abroad).

If you cease to be a UK resident while you already have an ISA open, you will no longer be able to put money into it. However, you will still be able to keep your ISA open and you will still be entitled to the tax benefits on investments held in the ISA. If you then return to be UK resident and ordinarily resident, you can start putting money in again.

robnoblewarren · 24 September 2008 at 10:36AM

shandyf wrote: »

I'm a director of a UK limited company but my trading address is abroad. The HMRC have advised that I must make a tax return every year and the tax I pay in my foreign country will be offset against the tax I pay to the UK. So, by all accounts, I am still seen as a UK resident for all except my NI contributions.

I'm agreeing with the above posts that you need to be resident and ordinarily resident in the UK in order to take out an ISA.
I'm not sure if you've figured it yet, but even if you could get into an ISA, you'd come a cropper figuring out what local tax you have to pay on the income and gains within the (UK) ISA. USA clients in the UK often hit this problem.
But you can get into a pension. And that will probably work in your local tax jurisdiction, too. More details are at http://www.fee-only.net/sample/samplepage.asp?article=1251
We had a client working in Belgium and also earning money from a UK company, for UK duties (as opposed to duties in other countries - which you can arrange to be not taxed in the UK).

Non UK Resident - Can I have an ISA?

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free