Non‑UK Resident ISA: What It Is and How It Works

If you’ve moved out of the UK but still want a tax‑free savings wrapper, you might have heard about a “non‑UK resident ISA”. In plain terms, it’s an Individual Savings Account that you can keep even after you leave the country – as long as you meet a few conditions.

First off, you must have opened the ISA while you were a UK tax resident. The moment you become a non‑resident, you can’t add new money, but the cash and investments you already have stay inside the ISA and continue to grow without UK tax.

Can You Open a New ISA After Leaving?

The short answer is no. The rules say you can only contribute while you’re a resident for tax purposes. Some providers will let you keep the account open, but any new deposits will be blocked. If you’re planning to move abroad, consider topping up your ISA before you leave.

There are a few exceptions. Certain offshore ISA‑type products exist, but they’re not the same as the UK ISA you know. Those products follow the tax rules of the country where they’re based, so you’ll need to check local regulations.

What About Taxes in Your New Country?

Even though the UK won’t tax the growth inside your ISA, the country you now live in might. Some jurisdictions treat foreign tax‑free accounts as regular assets and tax any interest, dividends, or gains. Others ignore them altogether. It’s worth checking with a local tax adviser to avoid surprise bills.

For example, if you move to Spain, the Spanish tax authority may consider the ISA as a foreign investment and could levy tax on the income it generates. In contrast, the United Arab Emirates imposes no personal income tax, so the ISA remains tax‑free in practice.

Another point to watch is reporting. Many countries require you to disclose foreign accounts on your annual tax return, even if the income is tax‑free abroad. Missing this step can lead to penalties.

Finally, remember that the ISA’s tax‑free status is tied to the UK’s rules. If the UK changes its definition of residency or the ISA regime, your situation could shift. Keep an eye on official HMRC updates.

Bottom line: you can keep an existing UK ISA after you become a non‑resident, but you can’t add money, and you may still owe tax in your new home. Talk to a tax professional, top up before you leave, and stay on top of reporting requirements.