How can I contribute towards my tax and is there any implication on my isa working from abroad?
18 February 2022
Question by Samuel
I’ve just moved abroad for work. Plan to stay for 3 years.
How can I contribute towards my tax and is there any implication on my isa?
Answered by Robert Powell
Hi Samuel - not 100% sure on your question to 'contribute towards my tax', so I'll take this as 'contribute towards my tax planning' for your pension and ISA.
If you have a UK pension in place before you leave the UK, you may be able to contribute up to £2,880 per tax year and receive £720 income tax relief, making your total contribution £3,600, each year for 5 tax years - so this could cover your 3 year time period you will be overseas for.
You won't be able to contribute to an ISA if you are non-UK tax resident. You have the option to keep the ISA where it is of course. On withdrawals, if you are overseas at the time, not all countries acknowledge the UK ISA tax-free withdrawal rules and so you may end up paying tax on withdrawals at some level depending on where you are living.
I would advise you speak with a financial adviser who has knowledge of both the UK and overseas jurisdiction you are resident in.
Enjoy your travels.