ISAs have always been a thorny issue for UK expats living abroad. But now Infinity can offer a great investment solution to align this element of your financial planning with the rest of your portfolio. Jordan Donald, our man in Kuala Lumpur, explains all.
ISAs and UK expatriates
ISAs have always been tricky for British expatriates moving abroad to live and work in Asia to manage. Once you are no longer resident in the UK, an ISA effectively goes into hibernation – you have the right to keep it open and will still benefit from UK tax relief but you can no longer put money into it.
Historically, this has meant that when expatriates have become residents in Asia, ISAs have typically been left in isolation, treated separately from other savings and pensions. This has been a source of huge frustration for many of our British clients. While the majority of their investments are managed by an Asia-based advisor, the ISA is managed by someone else entirely (or worse again no-one and the money just sits there), overcomplicating their financial planning.
A new solution for expats with UK ISAs
Infinity is pleased to announce that it can now offer our British expatriate clients HMRC-approved solutions to this issue.
Of course, our clients must still adhere to international tax regulations and HMRC residency regulations with regard to opening or topping up an ISA. We work with several providers who can facilitate the transfer of an existing ISA to a Stocks and Shares ISA, thus allowing the same advisor to look after you and your ISA while you live and work in Asia.
For any British expatriates who have invested in ISAs and might return to the UK. It means that your trusted advisor can now look after your ISA along with all your other investments. The ISA will retain tax deferral in the UK and may help avoid a double tax or dividend distribution tax analysis. You’ll also retain all the potential future benefits of the ISA if and when you decide to return to the UK.
How to transfer your UK ISA
Before you do anything, we advise you to chat through the possibilities of transferring your ISA with your Infinity advisor to see if it aligns with your financial plan and future objectives. A Stocks and Shares ISA is a medium to long-term UK tax-efficient investment which will enable you to build your nest egg and consolidate it with the other investments. You’ll have easy access to your savings at any time, should you need to make an emergency withdrawal.
So, if you are looking to align your ISA with the rest of your portfolio, contact your Infinity financial adviser right away and discuss how you can make a transfer.
If you aren’t already an Infinity client, we’d love to hear from you too. Contact us today to take advantage of this new product and benefit from our range of solutions to meet all your financial planning needs.
Financial Consultant
I work as a Financial Planner with expat clients to meet their financial planning needs and goals, with a focus on adequately protecting expats & their families, and helping people to grow their savings over the long term. I strongly believe in building meaningful and lasting relationships with clients to ensure the best client outcomes are achieved.
