Expat Offshore Stirling Accounts - Tax

[sleeky]

I will be emigrating to Hungary later this year and am trying to understand the options for my current UK savings. It seems if I want to retain these in Stirling I'll need offshore accounts (only 50k protection so will need multiples) in the channel Islands, I won't be able to have UK based accounts as I will be non-resident. The part I am confused about is where should I be paying tax on the interest?

From what I can gather, I'll need to declare any interest in Hungary and then pay the rate for this (15%), but I won't be liable for tax in the UK as I am non-resident and there will be no UK income?

Am I getting this correct or have I got it all wrong?

[Kirkmoly]

I don’t understand why you will not be able to have UK based accounts. I have been non-resident for UK tax in several countries and no UK bank has ever asked me to close an account. I always just gave them my new address.

In terms of tax, if you are not resident for uk tax purposes then no tax will be due in the UK on interest paid in the UK. Just be careful that UK institutions don’t withhold because HMRC, bizarrely, don’t let you claim it back.

[jonsp]

Has your UK bank(s) told you that you'd need to close your UK account?

[sleeky]

I've not asked yet, but the below for Barclays seems to suggest it would be:

https://www.barclays.co.uk/important-information/l...

[Michael_B]

I’ve not lived (or paid tax) in the UK since 1999, and still retain a Barclays current account. However, they are unable to send a paper statement to my home address overseas (can be required by certain UK institutions before paying out funds), and the phone app doesn’t work on non-UK mobile phones.

So I also have a sterling account in Switzerland, for the few (sometimes substantial) transactions I execute that aren’t in CHF or EUR.

Also no other UK bank would open a new account for me without a UK address, so I am stuck with Barclays, as there a few DD for life insurance policies and private pensions that I want to maintain for another 3-5 years.

[sleeky]

I just asked Barclays via the chat in the app if they can confirm which accounts would be closed, the reply was only when I change my address can they tell me! Not much use. I guess I will just have to see closer to the time.

[jonsp]

sleeky said:

I've not asked yet, but the below for Barclays seems to suggest it would be:

https://www.barclays.co.uk/important-information/l...

That certainly seems to be the case - st.

As soon as you give them your new address they'll close your account, have to assume your other bank(s) will be the same. Seems there's an exception for Crown employees but presumably that's not you?

Are you keeping on your UK property so maybe you wouldn't need to change your address?

[Quattromaster]

My mother is a Spainish resident, has been for 16 yrs.

Still has UK bank accounts, premium bonds , and uses a UK accountant for her tax affairs, as this is where she earns income (rentals).

[eyebeebe]

I've been out of the UK since 2009 and have had no issues to date keeping my HSBC account open. That said, my partner was forced to close her TSB account last year. I think it depends on the bank. I don't have any meaningful amount of money at HSBC.

[sleeky]

It does seem to be a bit of a crap-shoot!

I am tempted to open a large number of decent paying savings accounts (I already have a few) and then see which ones stay open when I change the address.

The ideal situation is I can keep the money within UK banks, then I get my personal allowance (UK citizen) and as the UK & Hungary have a double taxation treaty i'll owe no Tax in Hungary on the interest. Money in the channel islands, etc. will be liable for Taxation in Hungary.

Current account I am less worried about, Santander have free offshore ones that you can use for DD's etc.

[bongtom]

Michael_B said:

I’ve not lived (or paid tax) in the UK since 1999, and still retain a Barclays current account. However, they are unable to send a paper statement to my home address overseas (can be required by certain UK institutions before paying out funds), and the phone app doesn’t work on non-UK mobile phones.

That sucks. I use my Natwest app all the time overseas on a non UK phone and number.

[The Moose]

With Apple's App Store, you can change the country to UK to download and sign into the app and then change it back to your new country once done.

I haven't lived in the UK for the thick end of a decade and have a number of accounts with multiple banks (and yes, they know I don't like in the UK).

They use my non-UK cell phone number for OTP etc.

[JoeRRS]

I have been out of the UK since 2008 and have used HSBC for all my accounts UK based since, I do have a UK home but aslong as I tell them what country I am living in and give them my local mobile number its been perfectly fine. The only problem I did have was that I had to go through a broker to get a mortgage with them but again it worked out better in my favor.

[Michael_B]

bongtom said:

That sucks. I use my Natwest app all the time overseas on a non UK phone and number.

Not with the Barclays app :-(
But as I said earlier, I ended up using a more competent and efficient (if more expensive) solution via a GBP account at UBS Geneva alongside my existing CHF and EUR contracts.

[Michael_B]

The Moose said:

With Apple's App Store, you can change the country to UK to download and sign into the app and then change it back to your new country once done.

I haven't lived in the UK for the thick end of a decade and have a number of accounts with multiple banks (and yes, they know I don't like in the UK).

They use my non-UK cell phone number for OTP etc.

AFAICS Barclays require a UK phone number to register for the app. This was confirmed to me by their customer disservice telephone unhelpline a couple of years ago, and recent attempts would indicate that nothing has changed. The first of these steps does not accept a Swiss mobile number, so I cannot complete the process.

[bongtom]

But it is pretty simple to get a UK mobile, yes?

[sleeky]

Another little thing I have learnt, you can still have an ISA but cannot contribute to it after the current tax year, so I will open and max one out before I leave:

https://www.gov.uk/individual-savings-accounts/if-...

[Michael_B]

bongtom said:

But it is pretty simple to get a UK mobile, yes?

As a non-resident, I have no idea. I would have no other use for one except for this application, as I rarely go there since my folks passed away a decade ago. I still have UK citizenship, but generally use my Swiss passport for travel and business.

I have had one mobile phone (same Swiss number) since 1999, which I also use when at my French house 2-3 days/week. For my French bank account, the Crédit Mutuel app works fine.

I am also a director (though not that powerfully built) of a company based in Monza, and the banking app for its Intesa Sanpaolo business account also works without a hitch on a non-Italian mobile phone.

It appears to be just Barclays that can’t get with the programme, and unfortunately I cannot open a UK account elsewhere. But for the legacy DDs for a couple of life assurance/pension policies that Mrs B insists on maintaining, I would have closed the fscking thing years ago

[trunnie]

. Are you sure that the advice on the Double Taxation Treaty is correct? Article 11 (1) could be interpreted that interest earned in the UK by a Hungarian resident is only taxed in Hungary. If that is the case, then a Hungarian tax free equivalent of an ISA would make logical sense.

[GT03ROB]

bongtom said:

Michael_B said:

I’ve not lived (or paid tax) in the UK since 1999, and still retain a Barclays current account. However, they are unable to send a paper statement to my home address overseas (can be required by certain UK institutions before paying out funds), and the phone app doesn’t work on non-UK mobile phones.

That sucks. I use my Natwest app all the time overseas on a non UK phone and number.

Same here & my number is even Russian!