What happens to my ISA if I move abroad?

Full answer

Moving abroad has important consequences for your ISA -- the rules differ depending on whether you are keeping existing ISAs, opening new ones, or planning to return to the UK. Existing ISAs -- what stays the same: When you become non-UK resident, any ISA you already hold simply remains open. The ISA provider keeps your money invested or in cash, and you can continue to manage the investments within the ISA. The ISA wrapper is permanent -- it does not close or expire because you moved abroad. Returns inside the ISA (interest, dividends, capital gains) remain sheltered from UK income tax and CGT while you are non-resident (though this is less meaningful since you are unlikely to be within UK tax anyway as a non-resident, except on UK-source income). Contributions -- what stops: From the tax year in which you become non-UK resident (or from the date of non-residency if mid-year), you cannot make new contributions to any ISA. This includes: Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, and Lifetime ISA. If you inadvertently contribute while non-resident, HMRC and the provider can void the contribution and you may face penalties. Inform your provider of your change in residency. Tax in your new country: The UK ISA tax wrapper is a purely domestic concept -- it has no standing in foreign tax law. If you are resident in France, Spain, Germany, the USA, or any other country, the income and gains inside your ISA are visible to the foreign tax authority and will generally be taxable under local rules as if the ISA were an ordinary investment account. For example, USA residents with UK ISAs are required to report the ISA's holdings to the IRS; the USA does not recognise ISA tax exemptions, and the ISA may create PFIC (passive foreign investment company) reporting obligations. Always check local tax rules in your destination country. Lifetime ISA (LISA) -- additional points: LISA can be opened by UK residents aged 18-39. On becoming non-resident, contributions stop. The government bonus (25%) stops accumulating. If you withdraw from the LISA for a reason other than a qualifying first home purchase or age 60+, the 25% withdrawal penalty applies (this effectively claws back the bonus and imposes a penalty on your own savings in adverse market conditions). Do not withdraw from a LISA unless you meet the qualifying conditions. Junior ISA (JISA): If your child has a JISA and you move abroad with them, the JISA remains open but no further contributions can be made while the child is non-UK resident. The child cannot access the money until age 18. Returning to the UK: When you resume UK tax residency (from the new tax year), you can contribute to ISAs again up to the then-current annual allowance (GBP 20,000 for 2026/27 for an adult ISA; GBP 9,000 for a JISA). Your existing ISA balances from before emigration continue to benefit from the wrapper. The time spent abroad does not reduce your ISA allowance on return. Practical steps when moving abroad: notify each ISA provider of your new address and non-resident status; check whether the provider permits non-resident customers to remain as clients (some do not); keep contact and account details securely; set up a UK address (e.g. family member) for correspondence if needed.

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