Moving abroad: keeping ISAs and premium bonds as an expat
Most people can keep ISAs and Premium Bonds after moving abroad, but you normally cannot pay into a UK ISA while non‑resident (except for Crown service). The new country may tax ISA returns or Premium Bond prizes, so check local rules and notify providers.
Moving abroad: keeping ISAs and premium bonds as an expat
Most savers can keep the ISA tax wrapper after leaving the UK. A non‑resident normally loses the right to subscribe to UK ISAs. The Statutory Residence Test decides the exit date for UK tax.
Keeping and subscribing to ISAs
A saver keeps the ISA wrapper on leaving the UK. The saver cannot subscribe while non‑resident, except for Crown service. This rule covers Cash ISAs, Stocks & Shares ISAs and Lifetime ISAs.
Many providers block subscriptions from non‑UK bank accounts. Since the UK left the EU, EU states treat UK wrappers less predictably. Several EU tax offices issued new guidance and now apply domestic rules.
The most common error at this point is assuming EU treatment stayed the same. Check the destination country rules before deciding to keep or close accounts.
Premium bonds: tax treatment and practicalities
NS&I prizes are tax‑free under UK law. Many countries treat prizes as taxable income, so local reporting is often required. The saver must declare prizes under the Common Reporting Standard and follow local tax law.
NS&I will not withhold foreign tax on prizes. NS&I often needs a UK bank account to pay large prizes. Updating nomination and contact details reduces the chance of missed prizes.
Keeping your ISA after you move
The ISA keeps UK tax treatment even when the holder becomes non‑resident. The practical value depends on whether the destination recognises UK tax treatment. If the destination taxes returns, the ISA wrapper can lose value.
Statutory residence test and timing
The Statutory Residence Test decides UK tax residence and the exit date. The exit date affects the last UK tax year and self‑assessment returns. Keep proof of the move for four years in case HMRC queries it.
Transfers, closures and provider
Some providers close ISA accounts if you lose a UK address. Some providers also close accounts if there is no UK bank account. Ask the provider for written confirmation about account status.
The Financial Conduct Authority expects firms to state clear terms for overseas customers. Get any confirmation in writing and keep a copy for records.
Junior ISAs and lifetime ISAs
Junior ISAs remain open if the child still meets eligibility rules. Contribution rules change when parents become non‑resident. Lifetime ISAs cannot be subscribed to by non‑residents.
Check nomination and access rules before the move to avoid surprises.
Country-by-country rules and examples
Tax treatment differs by destination and changes the keep/sell decision. The fiscal impact hinges on whether the destination taxes worldwide income or uses remittance rules. The UK has double taxation agreements with more than 130 countries, and those DTAs can affect outcomes.
Spain and France example
Spain taxes worldwide income for tax residents and often treats prizes as income. France often taxes prizes and requires local declaration. A saver should check local law and any DTA clause.
United States and Australia example
The United States taxes worldwide income of US tax residents and citizens. NS&I prizes are reportable to the IRS by US persons. Australia treats prizes as assessable income for residents.
DTAs can change final tax but rarely remove initial reporting duties.
How to read the country matrix
Look for three headings: local tax on savings, prize treatment, and administrative hurdles. The matrix below lists five common destinations and practical notes.
| Country |
ISA contributions |
Premium Bond prizes |
Practical hurdles |
| Spain |
No, cannot subscribe once non‑resident |
Taxable as income; report on annual return |
May need local tax ID; UK bank helpful |
| France |
No, subscriptions barred for non‑residents |
Often taxable; requires declaration |
Bank paperwork and CRS reporting |
| United States |
No, subscription not allowed for non‑UK residents |
Taxable worldwide income; IRS reporting |
Complex reporting, seek US tax advice |
| Australia |
No, subscriptions usually blocked |
Taxable as assessable income |
Local tax return and CRS disclosure |
| Germany |
No, cannot add funds while non‑resident |
Prizes may be taxable; check local rules |
Bank transfer and ID checks likely |
The annual UK ISA allowance for the 2024/25 tax year is £20,000. The Common Reporting Standard, introduced over a decade ago, now covers over 100 jurisdictions. Check the relevant Double Taxation Agreement; the UK has DTAs with more than 130 countries.
A useful country summary should state whether subscriptions are allowed for residents. It should also show if ISA income and gains are taxed locally and at what rates. It must include how Premium Bond prizes are treated and any DTA relief.
For example, Spain treats residents' worldwide savings as taxable and often taxes NS&I prizes at savings bands. A commonly used lower savings band is 19 percent for modest amounts, so a £1,000 NS&I prize may attract Spanish tax even though it is UK‑tax free. The UK‑Spain DTA does not automatically exempt such prizes, but it can affect relief in some cases.
The IRS does not recognise ISAs as tax‑advantaged, so dividends and capital gains inside a Stocks & Shares ISA are reportable and taxable to a US person. NS&I prizes are reportable as income under US rules.
Notify NS&I and ISA providers
Notifying each provider avoids missed payments and account closure. Providers need residency and contact details to pay prizes or dividends. Record all communications and ask for written confirmation.
Step-by-step checklist to notify
Write to NS&I and each ISA provider with the new address and tax residency status. Give the effective date and include proof such as passport copy or local tax ID. Ask the provider to confirm the account will stay open and how payments are handled.
Documents and evidence commonly requested
Providers usually ask for the new address, ID and banking details for payments. NS&I may ask for a UK bank account for prize payment or explain cheque handling. Update nomination and contact preferences while still in the UK.
Timelines and what to expect
Allow up to six weeks for providers to process residency updates. Keep a record of the date the provider received the notice and any reference number. If a provider plans closure, request reasons in writing and ask about transfer options.
This advice does not apply if tax residence remains in the UK. For example, temporary moves may keep UK tax residence under the Statutory Residence Test. It also does not apply if the goal is higher returns from non‑UK investments, where offshore or local products may suit better.
For personalised cross‑border tax advice, consult a UK tax adviser or a local tax specialist familiar with the destination country. If sums are large, get professional help early.
Decision matrix: keep, transfer or sell
Decide using three axes: destination tax rules, investment horizon and the need for a UK bank account. These axes show whether the ISA wrapper remains valuable abroad. A short horizon and high foreign tax often point to selling.
Personas and suggested actions
A short‑term expat (under two years) should usually keep accounts open and maintain UK banking. A long‑term non‑resident often sells taxable UK products or moves funds to local tax‑efficient wrappers. A returning expat can keep assets but must keep records to reuse ISA allowances where allowed.
Numerical example
A saver wins a £1,000 Premium Bond prize. UK tax equals £0. Spain taxes the prize at 19 percent in this example, so local tax due is £190 and net after tax is £810.
The saver must report the £1,000 to Spanish tax authorities and pay the £190.
Comparative table of options
| Product |
Keep |
Sell/Transfer |
Best for |
| Cash ISA |
Yes if local tax treats interest favourably |
Sell if local tax negates UK wrapper |
Short‑term savers needing liquidity |
| Stocks & Shares ISA |
Keep if DTA protects capital gains |
Transfer to taxable account if necessary |
Long‑term investors with DTA cover |
| Premium Bonds |
Keep for chance of tax‑free UK prizes |
Sell if destination heavily taxes prizes |
Those who value capital security and prize potential |
| Offshore bonds |
N/A: often acquired via adviser |
Consider for tax‑deferral needs |
Expats seeking deferral and planning flexibility |
Alternatives for UK expats
Offshore bonds and local tax‑favoured accounts can suit long‑term non‑residents better than UK products. The choice depends on costs, reporting and how local rules tax gains on disposal. Cross‑border products add complexity under CRS reporting.
Offshore bonds and international
Offshore bonds offer tax deferral and flexibility but attract set‑up charges. Gains may be taxable on surrender under local law or when funds are remitted. Weigh adviser fees against likely tax benefit.
The most common oversight is ignoring ongoing reporting costs. Ongoing CRS and local returns can add real costs and time.
Local tax‑favoured accounts
Some countries offer local wrappers that match tax aims better than UK products. Compare effective tax rates and ease of access. DTAs and remittance rules can influence net benefit.
Complex residence or high balances need a tax adviser with cross‑border experience. A qualified adviser will model net outcomes and check DTAs. The complexity of CRS and local reporting usually justifies professional help.
Example case: A UK saver moved to Spain, kept Premium Bonds and later won £5,000. The prize is tax‑free in the UK but Spain treated the prize as taxable income, producing a bill of around £950 (approx 19 percent). The saver filed a Spanish tax return and paid the tax because NS&I did not withhold any amount.
Frequently asked questions
Can I keep my ISA after becoming non‑resident?
Yes you can usually keep an existing ISA but you cannot subscribe while non‑resident. The ISA keeps its UK tax status but no new UK subscriptions are allowed. Check provider terms for account access and possible closures.
What happens to Premium Bonds when you emigrate?
Premium Bonds remain in place and stay eligible for draws after emigration. NS&I will not deduct foreign tax, so winners must report prizes in their country of residence. A UK bank account speeds prize payment.
Can I buy new Premium Bonds if I live abroad?
Buying new Premium Bonds from outside the UK is often restricted and depends on NS&I terms. NS&I typically requires a UK bank account or UK address for purchases. Check current NS&I guidance before attempting a purchase.
Do I need to tell HMRC when I move abroad?
If tax residence changes, the saver may need to inform HMRC and complete self‑assessment for the exit year. The Statutory Residence Test decides residency for tax. Keep records proving the move and days spent in the UK.
How do I report NS&I prizes abroad?
Report the gross prize to local tax authorities as required by local law and CRS rules. NS&I will report account details under CRS but will not pay foreign tax. Seek local tax advice for correct reporting and payment.
Can I hold ISAs or Premium Bonds for minors?
Junior ISAs require the child to meet UK eligibility rules; residence can affect contributions. Premium Bonds can be held for minors but gifting across borders creates reporting duties. Check local rules for gifts and minor accounts.
What happens if my UK bank closes my account?
If a UK bank closes the account, some ISA access and prize payment routes may be affected. Request written reasons and ask the provider whether alternative payment options exist. Escalate unresolved cases to the Financial Ombudsman Service in the UK.
Junior accounts and minors need separate consideration when emigrating. A Junior ISA usually accepts subscriptions only while the child is UK resident. Premium Bond prizes for minors may need declaration if the child becomes resident in a country that taxes worldwide income.
Gifts from relatives abroad can trigger reporting or gift‑tax rules in donor or recipient countries. Parents and grandparents should check account eligibility and local tax treatment of gifts. Keep clear documentary evidence of residency dates and gift origins.
Plan to act now
Start by listing each UK account and the provider contact details. Keep copies of all statements and paperwork. Notify NS&I and every ISA provider in writing with proof of new residency and request written confirmation of account status.
Quick practical steps
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Make a list of ISAs and Premium Bonds and note balances and nominee details.
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Contact each provider by recorded delivery or secure message and tell them the new address.
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Send proof of residency, such as passport copy, local tax ID or utility bill, and ask for written confirmation.
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Check destination country tax rules, DTAs and CRS implications and keep records for tax returns.
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If sums are significant or rules unclear, consult a cross‑border tax adviser with UK and local expertise.
Closing recommendation and next moves
Keep written records of all provider contacts and confirmations. Decide based on destination tax rules, access to UK banking and how long you will live abroad. If in doubt and sums matter, get specialist cross‑border tax advice before moving.
