Investing in UK funds from abroad.

interestedalex
interestedalex Posts: 13 Forumite
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in Savings & investments
I am due to return to the UK in just under 2 years. In the meantime I was hoping to invest substantial savings currently sitting in a UK current account earning 0% interest.

I heard that it might be possible for a UK resident relative to invest my funds on my behalf until I return as a UK resident.
Does anyone know if this is possible or if it involves costs/accountant/lawyer?

Many thanks!

Comments

  • eskbanker
    eskbanker Posts: 30,939 Forumite
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    I'd have thought that it's only possible if you loan your money to a relative who's willing to then (a) do the investing in their own name and (b) accept that they're personally liable for taxation on dividends and capital gains during the period prior to the return of the money (even if you reimburse them then), so yes, I'd say that any such arrangement should be properly formalised via a written agreement.
  • interestedalex
    interestedalex Posts: 13 Forumite
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    Thank you for your reply.
    What you say makes sense in terms of investing the cash. I wonder if there's a way of them setting up an account on iweb or HL and then transferring it to me when I return. The other option would be to cash out pay me back (minus costs) and then for me to reinvest under a new account. I guess I'm trying to balance the costs of arranging all of this against the lost opportunity for growth over the time period.
  • Voyager2002
    Voyager2002 Posts: 15,279 Forumite
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    What kind of invest?


    If you mean shares and bonds, check out Internaxx. Based in Luxemburg, they are an investment platform that specialise in providing this kind of service to expatriates.


    Otherwise, (if you mean savings accounts and the kinds of bonds that banks offer) you could ask your relative to visit the appropriate bank and simply ask how they could help.
  • londoninvestor
    londoninvestor Posts: 1,350 Forumite
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    Voyager2002 wrote: »
    If you mean shares and bonds, check out Internaxx. Based in Luxemburg, they are an investment platform that specialise in providing this kind of service to expatriates.

    And "shares" includes ETFs there - which might be an easier way to achieve the goals that you were hoping to use UK funds for.
  • interestedalex
    interestedalex Posts: 13 Forumite
    First Anniversary First Post
    Voyager2002 wrote: »
    What kind of invest?


    If you mean shares and bonds, check out Internaxx. Based in Luxemburg, they are an investment platform that specialise in providing this kind of service to expatriates.


    Otherwise, (if you mean savings accounts and the kinds of bonds that banks offer) you could ask your relative to visit the appropriate bank and simply ask how they could help.

    I was referring to bonds and shares, I will check out Internaxx. Thank you very much for the advice.
  • interestedalex
    interestedalex Posts: 13 Forumite
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    londoninvestor wrote: »
    And "shares" includes ETFs there - which might be an easier way to achieve the goals that you were hoping to use UK funds for.

    I actually had to look up what ETFs are and I think they would certainly interest me. I had previously been looking at some of the Vanguard and Dimensional funds, I am right in thinking they would be classed as ETFs?
  • londoninvestor
    londoninvestor Posts: 1,350 Forumite
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    interestedalex wrote: »
    I actually had to look up what ETFs are and I think they would certainly interest me. I had previously been looking at some of the Vanguard and Dimensional funds, I am right in thinking they would be classed as ETFs?

    Vanguard have a range both of ETFs, and of more traditional "funds" (strictly speaking, ICVCs, OEICs and Unit Trusts)

    Often they make basically the same product available in ETF and non-ETF form. In your particular situation, their Irish-domiciled ETFs may make sense, as you'll be able to trade them both now and on your return.

    (Note, Internaxx also offer Vanguard US ETFs, but as things stand now, you couldn't invest further in them when you come back to the UK, because Vanguard haven't filed the necessary European regulatory paperwork. It could be Vanguard do so, or Brexit changes that, but no guarantees.)

    Dimensional don't offer ETFs, only "funds". They have Irish-domiciled funds which would be fine when you're back in the UK, but may be harder to access now - possibly it depends exactly where you're living.
  • interestedalex
    interestedalex Posts: 13 Forumite
    First Anniversary First Post
    londoninvestor wrote: »
    Vanguard have a range both of ETFs, and of more traditional "funds" (strictly speaking, ICVCs, OEICs and Unit Trusts)

    Often they make basically the same product available in ETF and non-ETF form. In your particular situation, their Irish-domiciled ETFs may make sense, as you'll be able to trade them both now and on your return.

    (Note, Internaxx also offer Vanguard US ETFs, but as things stand now, you couldn't invest further in them when you come back to the UK, because Vanguard haven't filed the necessary European regulatory paperwork. It could be Vanguard do so, or Brexit changes that, but no guarantees.)

    Dimensional don't offer ETFs, only "funds". They have Irish-domiciled funds which would be fine when you're back in the UK, but may be harder to access now - possibly it depends exactly where you're living.

    Wow, thank you for the advice and the extra information. I am based in Belgium right now. Clearly I need help from someone who understands the current possibilities whilst I'm here, as well as a strategy for transitioning back to the UK both in terms of jurisdiction as well as fiscal considerations.
    The difficulty I have faced is that I haven't yet found an IFA who can, A) span these two areas, and B) Not just try and get me to invest as much as possible into a fund asap. Someone recommended deVere, but they didn't feel right and after researching a bit more, I felt more sure they weren't the right fit.
    If anyone has any recommendations, I'd be very interested.
  • londoninvestor
    londoninvestor Posts: 1,350 Forumite
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    interestedalex wrote: »
    Wow, thank you for the advice and the extra information. I am based in Belgium right now.

    Cool, so dealing with a Luxembourg broker and/or buying an Irish-based fund shouldn't be a problem.

    I know less about any other subtleties, like Belgian tax, I'm afraid.
  • interestedalex
    interestedalex Posts: 13 Forumite
    First Anniversary First Post
    londoninvestor wrote: »
    Cool, so dealing with a Luxembourg broker and/or buying an Irish-based fund shouldn't be a problem.

    I know less about any other subtleties, like Belgian tax, I'm afraid.

    Yes, that certainly an attractive option.
    I'm on a special temporary resident scheme for the first 5 years whereby I only have to pay tax on Belgium based income and investments. So, I imagine I'd have to deal with tax considerations when I become a UK resident.
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