Intro
Are you a UK citizen or resident? Are you looking for an investment with low risk? Do you want to grow your wealth in a tax-efficient way? If the answer to all these questions is yes, an ISA (Individual Savings Account) is a perfect choice. An ISA is a great tool to grow your savings and investments tax-free, and any UK resident is eligible for these accounts.
But let's see what happens if you decide to move out of the UK.
THE ESSENCE:
- You can keep your ISA and still get the UK tax relief on the money parked in it.
- However, you can’t contribute money to the accounts, but you can pay again if you return.
- Withdrawals are allowed on the same conditions as living in the UK.
What happens to my ISA if I move abroad?
In a nutshell, while workers can live abroad, their ISAs will stay in the UK.
If you have an ISA and take a job overseas, you can’t contribute to your ISA after the tax year that you moved in. However, the great news is that you can still keep your accounts, and your savings and investments stay free from taxes. You can pay again into your accounts if you move back to the UK.
You can withdraw from your ISA account while being abroad with the same conditions as if you were residing in the UK.
What are the benefits of ISA?
ISAs are tax-free investment accounts in the United Kingdom. You can choose the type of ISA that best suits your savings and investment goals. ISAs are accessible products that allow you to withdraw your money when you need it. You can have multiple accounts at the same time but the maximum allowance is £20,000 for these accounts in a tax year.
Let's recap the differences between the account types!
| Type of ISA | What is it? | Age | Main features |
|---|---|---|---|
| Cash ISA | Savings account | 16+ | £20,000 annual allowance. Tax-free interest. |
| Lifetime ISA | House deposit and/or retirement savings account | 18-39 | £4,000 annual allowance with 25% top-up. Tax-free interest. |
| Junior ISA | Savings account | Under 18 | £9,000 annual allowance. Tax-free interest. |
| Stocks and Shares ISA | Investment account | 18+ | £20,000 annual allowance. Tax-free gains, dividends, and interest. |
| Innovative Finance ISA | P2P lending investment | 18+ | £20,000 annual allowance. P2P lending and tax-free interest. |
Read more about everything you need to know about ISAs.
Which is the best ISA broker?
We at BrokerChooser want to help you make sense of a complicated financial world by doing the research for you. Our skilled team put together a unique methodology that allows us to review brokers and collect the best brokers to open an ISA account.
Being financially independent and conscious is very important, so congratulations on beginning your journey! We collected all data you need to know about the best investment providers in the United Kingdom.
If you need any help or have any suggestions, head over to the BrokerChooser community page!
Further reading
- Everything you wanted to know about ISAs
- What is an ISA: an in-depth guide to tax-advantaged savings for UK residents
- How much can you put in an ISA?
- How many ISAs can I have?
- What is a Lifetime ISA and how best to use it?
- How to open a Lifetime ISA
- What is a cash ISA?
- What is a Junior ISA?
- What is a flexible ISA?
- What is an Innovative Finance ISA?
- How to transfer your ISA?
- How does an ISA work?
- Which is the better investment: pension or ISA?
- Is ISA only for UK citizens?
- What is the safest ISA?
- Does an ISA beat inflation?
- Interest on cash ISA: much do they pay?
- IBKR offers global access with local benefits for ISA holders
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.
