Do you have a UK ISA

Do you have a UK Individual Savings Account (ISA) from when you lived/worked in the Uk, but have now moved to live in the Republic of Ireland?

If you are resident in the Republic of Ireland you need to declare your UK ISAs when resident in Ireland as these are now taxable accounts as far as the Revenue here are concerned.

Interest and Income exempt from tax in foreign country

If certain interest or income is exempt from tax in the country in which it arose, it does not follow that this income is similarly exempt from tax in this State. For example, income or interest from Post Office Savings in UK or from TESSA or ISA products is liable to Irish tax.

However, here is the good news?

Where was your father born? If you are a UK Citizen (or any other Foreign National for that matter) living in the Republic of Ireland you may be able to reorganise your affairs so that you don't need to pay tax in Ireland.

But just leaving your savings in your UK ISA and hoping isn't a good strategy.

cashier said:

i think you have to be an uk resident to take out an isa.

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You have to be UK resident when you open, or add to, an ISA. You can, however, keep funds invested within an ISA whilst non-resident.

Hi Marc
Interesting post as we do have ISA/PEP products from when we lived in the UK have not cashed them in. My husband is A UK citizen but resident. When you say rearrange your affairs what have you in mind?

Hi Simonea,

There are a number of tax planning strategies that are open to non-domiciles (Foreign Nationals) living in Ireland.

The best way to proceed for any particular family depends on the circumstances of the family and this makes a "simple" answer impossible.

However, as an example, a non-domiciled individual is taxed on a remittance basis for their investment capital. This means that provided they hold the right investments there is no tax liability on the underlying investment capital gains -provided these remain in the UK and are not "remitted" into Ireland.

However, most investment funds and typically those within PEPS and ISAS do not qualify for taxation under the remittance basis and therefore it will probably be necessary to rearrange the investments you hold within your PEPS and ISAs so that the underlying investments qualify.

This would mean that should you return to the UK you have retained the tax efficiency of the investments from a UK perspective and minimised your tax from an Irish Perspective.

Thanks for your reply Marc - something for us to look into. DOes a UK citizen , living and working here count as a Foreign national? We have a few small investments that will mature over the coming years so now is the time to look at them I also have an endowment mortgage (young story I was younf and naive when I took it out) when I sold the house i left the endowment running as had only a small monthly contribution. DOn't fancy paying tax on that when it matures 10 years hence!

A UK Citizen who is not Irish Domiciled has some complex planning issues to consider (Your Domicile is different to your residence. If your Father wasn't born in the Republic of Ireland then you may be non-domiciled).

A UK qualifying endowment policy is "tax free" in the UK on maturity (really the tax is paid at source) and you have no further tax liability as a UK resident. A qualifying UK policy is pre-certified which means that it is safe from future changes in UK taxation.

However, in Ireland the proceeds are taxable as a receipt from an EU policy. So you could be taxable on any gain if you are Irish Resident when it matures.

This means that you could be paying tax on the fund in the UK and may also get hit for tax here in Ireland on maturity. There may be alternatives available to you but you should proceed with caution as Endowments are horrible contracts.

For reference, I specialise in advising Foreign Nationals (especially UK and US Citizens) living in the Republic of Ireland.

Thanks Cashier I saw your earlier posts on this subject.

It's not immediately clear why Revenue don't seem to be consistent here....

Foreign Life Policies (Sections 730H, 730I, 730J, 730K TCA 1997) [318]
Where a taxpayer has sold, made withdrawals from, or received any cash or other benefits from a foreign life assurance policy or a personal portfolio life policy, often referred to as a bond, with a foreign assurance company, they may have made a gain from a foreign policy. Receipts from policies that issued from an ‘offshore State’ are taxable income. An offshore State is a country other than Ireland which is a Member State of the European Union (EU) or European Economic Area (EEA), or any Member State of the Organisation for Economic Co-operation and Development (OECD) with which Ireland has a Double Taxation Agreement.

new question on ISAs

Hi,
I am new to this forum - I found it while trying to find info about my UK ISA. I am Irish, living and working here again, but I worked in England for many years where I took out a share based ISA for £5,500 as savings . I am now thinking of cashing in some of it. I am a PAYE worker and as far as I know revenue does not know about it. I am loathed to pay tax on it now but what sort of tax will I have to pay and how will that be deducted.
Thanks
Stitcher

Hi Marc - are you there - it is 2017 now and I have a question that relates to your post above. Can you tell me a bit more about re arranging the investments in the ISA so they qualify for NO capitol gains tax in Ireland. I am Irish resident, non domiciled in Ireland, domiciled in the UK

Marc said:

A UK Citizen who is not Irish Domiciled has some complex planning issues to consider (Your Domicile is different to your residence. If your Father wasn't born in the Republic of Ireland then you may be non-domiciled).

A UK qualifying endowment policy is "tax free" in the UK on maturity (really the tax is paid at source) and you have no further tax liability as a UK resident. A qualifying UK policy is pre-certified which means that it is safe from future changes in UK taxation.

However, in Ireland the proceeds are taxable as a receipt from an EU policy. So you could be taxable on any gain if you are Irish Resident when it matures.

This means that you could be paying tax on the fund in the UK and may also get hit for tax here in Ireland on maturity. There may be alternatives available to you but you should proceed with caution as Endowments are horrible contracts.

For reference, I specialise in advising Foreign Nationals (especially UK and US Citizens) living in the Republic of Ireland.

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Hello Marc, this is the exact boat Iám bobbing around in, are there any tax manuals covering this topic, went through some of the investment/pension related guides but no mention of ISA's and such.

My thoughts are (based on interpretation) is to make sure I am UK resident when/if ISA's and/or stocks are sold for the purposes of tax.

If there are alternative routes I would be happy to use your services, thanks

ref thread Tax residence status

This is one of the most complex aspects we deal with as a firm.

I am planning to issue a guide shortly so if you would like to purchase that, please let me know.

Alternatively, you can make contact via a link to my diary in my AAM profile

Thanks for the reply,

Yes, I would be very much interested in purchasing your guide, I do however get this when viewing your profile.

-This member limits who may view their full profile.-

Thanks for letting me know. There is a default setting hiding everything.

Cheers, the option to send messages may be disabled my end as newbie, sent email to your main address instead - can you pick that up as out of office.