Leaving UK for 2 Years

[Progressive]

Leaving the UK for 2 years, probably not returning during that time. I have circa £30,000 sitting in various ISA's and savings accounts.

Is there anything recommended for somebody in my position or do I just leave it there? Additionally, do I need to inform my bank of my arrangements?

[Eric Mc]

If you are going to be out of the UK for an unbroken two years, it is definite that you will be a non UK tax resident for at least one complete tax year. Therefore, for that tax year, you will not be subject to UK tax. On that score, you should be able to notify your banks that you will not be a UK taxpayer for that particular tax year and accordingly they should stop deducting tax at source on any interest you receive.

Ther ISAs are not taxable anyway so they don't matter.

[The jiffle king]

I would set up a series of bank accounts with various institutions, even if they have nothing in them. Being abroad and trying to open an account is difficult and there are many restrictions. We made this mistake and are restricted in which banks will let us open accounts.

If you are planning to save any money where you are going to be living, then I would set up an account with UKforex or similar for transferring money back at way better than bank rates.

[e8_pack]

You may also be able to reclaim capital gains but not with all banks so check first. I know this because I can't with mine - nationwide.

[LC23]

You will be non tax resident of the UK provided you are going to work in full time employment abroad for a period which includes at least one UK tax year. You say you are unlikely to visit the UK during this time so you should not have to consider the 183 day and 91 day tests.

You will be non resident from the day after departure until the day before you return. The tax years of departure and arrival can be split as part years of tax residence by concession.

I don't believe you can contribute to an ISA whilst non UK tax resident so you do need to let your ISA provider/s know that you are going abroad. You can also request that your UK bank interest is paid gross (form R85). This does not mean it is not taxable as it is UK source. HMRC will still tax this income if it exceeds your personal allowance (I am assuming you are a UK national and therefore can still claim this as a non resident of the UK). In your years of departure and arrival you are more likely to exceed the personal allowance if you have other sources of UK income (eg, salary). If you are going to a country which has a double tax treaty with the UK then this may exclude the UK source bank interest from the charge to UK tax but it will then likely be taxable in the country you are going to.

If you wished to you can move your investments offshore and then the UK will have no taxing rights on it. Bear in mind that the country you move your investments to may withhold tax on it and the country you are moving to may have taxing rights on your investment income regardless of where it is.

[Cheib]

You need to take proper advice from an expert in this field...where you are going, when you leave during the year, what you are doing (i.e. as LC23 said whether or not you are in full time employment) makes a big difference.

[chris7676]

Can you actually continue to have an ISA while not being a UK tax resident?

[LC23]

chris7676 said:

Can you actually continue to have an ISA while not being a UK tax resident?

You can keep one which you already held and contributed to prior to becoming non UK tax resident but cannot make any further contributions whilst non resident.