ISA for non UK residents/citizens

ISA for non UK residents/citizens

Searching for ISA for non UK residents/citizens? Individual Savings Accounts (ISAs) have always been a reliable cornerstone of investment for Brits. It offers a tax-efficient and accessible way of growing savings over the years. However, for those who have decided to live and work outside the UK, the implications of moving abroad with an ISA portfolio can be less than clear. This article will go into some of the complexities of ISAs for British expats, and explore some of the alternatives.

Can I take out an ISA whilst living abroad?

No, you will be unable to open an ISA account from abroad. If you had one before you left you can keep it open. However you will be unable to make contributions to it. Nor can you make any withdrawals without having to declare it as income in your new home country. Thus losing the tax-free benefits of the ISA. ISAs become problematic for expats because they get left in a no-man’s-land where they can neither be withdrawn from or invested into. 

Additionally, if you then open another investment account from your current country of residence, you’ll have one portfolio being managed by one provider in one jurisdiction, and your ISA managed by someone else in another. This is when things start to feel overly complicated. 

If you have an investment account with us at Harrison Brook and a UK ISA, consider a Novia Stocks and Shares ISA option. You could move your current UK-based ISA into one of our Novia Global ISAs. We could then run and manage your ISA alongside your investment account. All will be on the same platform.

If you ever move back to the UK, you can then look to top-up the ISA with contributions from your investment account (as you’ll be eligible to pay into it again) or simply move the ISA back into another UK-based ISA. Just to be clear: this is an option for UK expats that already have accumulated ISA benefits and plan on returning to the UK in the near-future or are considering keeping it in case they do. 

What about if I don’t plan to go back to the UK?

If you don’t plan to return to the UK then there are alternatives that would be more accessible to you. Whilst not as tax-efficient as an ISA, allow you to grow your savings in a reliable and safe way:

  • You could use a more locally-tax-efficient solution. For example, if you live in France you could take out an Assurance Vie policy. Geared towards long-term investors, this tax-efficient wrapper lets you hold multiple investments (8-years +). In return, you can benefit from letting your savings grow in a tax-free setting. You can enjoy unlimited protection of funds and significant reduction in tax after the initial 8-year period. 
  • You also have the option of a fixed-term annuity. This insurance contract provides the owner with regular income over a set term. This is a great option for investors who want to avoid market fluctuations and want stability and a consistent return without risking their initial investment. You have options of choosing a guaranteed annuity, or a fixed-index annuity which tracks indices like the S&P 500. 
  • Lastly, you can open a platform-based investment account. This flexible and globally-accessible solution allows the investor to grow their savings through a range of ETFs, bonds and mutual funds. This is the ideal choice for those who like to be in the driver’s-seat and have full control over their investments. 

ISA for non UK residents/citizens – What’s the next step?

Whether it concerns ISAs, fixed-term annuities or an Assurance Vie – our team of expats here at Harrison Brook can help you find a tailored solution that meets your requirements. 

Get in touch with us here to start your free initial consultation. 

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