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26th
Oct 2020
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What Happens to My ISA If I Move Abroad?

What Happens to My ISA If I Move Abroad?

If you’re one of the lucky ones hopping on a plane to up sticks to sunnier lands than the UK (for a long-term or permanent move), then you need to think about what to do with your ISAs. Since ISAs are legislated by the Government and are designed for UK citizens to save and invest, moving abroad can complicate matters. Luckily, we’ve got all you need to know. 

What is an ISA?

An ISA (Individual Savings Account) is a government legislated type of saving or investment which allows you to put money into a tax-efficient way of saving.

An ISA allows an individual to put approximately £20,000 into any ISA account each tax year. This money is then kept in a tax free wrapper – essentially, this means that any returns generated either by interest or from investment, are not subject to capital gains tax or income tax.

There are a variety of different kinds of ISAs, including but not limited to Cash ISAsInvestment ISAsLifetime ISAs, and Junior ISAs.

 I’m moving abroad – what do I need to know about my ISAs?

ISAs are intended to be used by residents of the United Kingdom. That means that if you are planning to move abroad, then there will be changes to the way you are able to use your ISAs.

You will still be able to hold your ISA accounts, and they will still accrue interest tax-free.

However, you cannot put any money into your ISA after the tax year that you move, or open any more ISAs during the period you are living aboard. This means you are sacrificing your £20,000 allowance for the tax year that you move abroad. 

There are exceptions to this rule – those who are Crown employees who are working overseas (and the spouses/civil partners of these individuals) are exempt.

You must also let your ISA provider know when you have moved abroad and ceased being a UK resident.

You can also still transfer your ISA to another provider should you be unhappy with the current deal you have.

Can I never put money into my ISA again if I move abroad?

Not necessarily.

You can put money into an ISA again if you’ve lived abroad – you just need to move back to the UK in order to do so. 

Once you once again become a UK resident, you will be able to open as many new ISAs as you wish – within the regulations, of course. 

This applies to all ISA accounts - Cash ISAs, LISAs, JISAs, Investment ISAs etc. 

You can read more about all of these ISA accounts here. 

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK, plus shares, investment trusts and exchange-traded funds. There’s also expert guidance to help with your investment decisions, which includes a selection of tools and insights from Fidelity’s experts. Capital at risk. Tax and ISA rules apply.
  • Invest From: £25 through regular savings or £1,000 lump sum

Why we like it: Fidelity has lots of investment options, plus an extensive range of guidance tools to help you decide what to invest in. Their award-winning ISA is easy to start and offers great value, their a typical service fee of just 0.35%. Other ongoing charges apply. On top of that, everything is backed by Fidelity’s 50 years of investment experience.

Important: The value of investments can go down as well as up so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Tax treatment depends on individual circumstances and all tax rules may change in the future.

Stocks & Shares ISA

from Interactive Investor

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Access 40,000+ UK, US and international shares on 17 global exchanges. Choose from over 3,000 funds or select a ready made portfolio. Investment trusts, ETFs, Bonds & Gilts. Option to invest in 6 low cost funds selected by experts to get you started. Capital at risk. Tax & ISA rules apply
  • Invest From: £25 a month or any lump sum

Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Strong ethical investment proposition with more than 140 investment options. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from Hargreaves Lansdown

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Choose from over 2,500 funds, shares, investment trusts and more to build your portfolio. UK and overseas shares. Corporate and government bonds. Exchange Traded Funds (ETFs). Ready-made portfolios to suit your goals and attitude to risk from £1,000. Expert research to help make your decisions. Investment trusts and much more. Capital at risk.Tax & ISA rules apply
  • Invest From: £25 pm or from £100 lump sum

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Junior ISAs

Junior Stocks & Shares ISA

from Nutmeg

  • Investment Options: Invest in one of four expertly designed portfolios depending on your investment style

Why we like it: Open with a lump sum from £100 to £9,000 in the 2021/22 tax year. After initial investment top up any time with no minimum. Simple, transparent - Invest in one of a range of four expertly designed portfolios depending on your investment style. All four Nutmeg investment styles are built by experts and use exchange traded funds to diversify across stocks, bonds, industries, even countries. Choose the one that works for you. No exit fees and you’re free to make adjustments. You can see where your Junior ISA is invested and how it’s performing. Withdrawals possible from age 18. You can also transfer an existing Junior ISA or Child Trust Fund. If you need any help, financial advisers and customer support will answer any questions you have

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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