# UK Savings Accounts & Residency



## chris&vicky (Feb 6, 2013)

When you open a UK savings account a condition is that you are a UK resident. I have looked through the t&c's to see what happens if you become non-resident and no banks appear to mention this. 

To get any kind of interest return you need to fix for a few years, which is what I was going to do, but next year I will be resident in Spain. These accounts do not allow withdrawal or closure during the term, so I do not know what they will do.

Has anybody had any experience with this? I am not sure I want to ask the bank as I would prefer just do open one online, if I ask they may prevent me opening one.


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## snikpoh (Nov 19, 2007)

chris&vicky said:


> When you open a UK savings account a condition is that you are a UK resident. I have looked through the t&c's to see what happens if you become non-resident and no banks appear to mention this.
> 
> To get any kind of interest return you need to fix for a few years, which is what I was going to do, but next year I will be resident in Spain. These accounts do not allow withdrawal or closure during the term, so I do not know what they will do.
> 
> Has anybody had any experience with this? I am not sure I want to ask the bank as I would prefer just do open one online, if I ask they may prevent me opening one.


It's absolutely not a problem. You need to ask if the particular bank/building society accepts the tax forms to allow interest to be paid gross. Even if they do, they will still hold onto 12%

I'm in that situation myself. They really don't care where you live BUT they will no allow you to open new accounts. When my interest rate bonus expired on one of my accounts they simply converted the account to their (current) best deal - they did this for a number of years. 

This last year it was different! I rang them to ask if they could do the same again and was told NO - my account would revert to the base rate of 0.5% gross interest and there was nothing I could do about it! I promptly moved my money off shore and now get 1.7%

To open a new account, you will need to prove that you are resident in UK. They check Poll Tax, electoral role and they also insist on seeing utility bills in your name.


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## chris&vicky (Feb 6, 2013)

snikpoh said:


> It's absolutely not a problem. You need to ask if the particular bank/building society accepts the tax forms to allow interest to be paid gross. Even if they do, they will still hold onto 12%
> 
> I'm in that situation myself. They really don't care where you live BUT they will no allow you to open new accounts. When my interest rate bonus expired on one of my accounts they simply converted the account to their (current) best deal - they did this for a number of years.
> 
> ...


Thanks I wanted to open some on a long term before I leave the UK and was thinking of going off shore after that which appears to fit in with what you have done


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## gus-lopez (Jan 4, 2010)

It always used to be a problem. All the ones we were with specifically excluded non.residents. I had to shut 2 before we stopped telling them !


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## chris&vicky (Feb 6, 2013)

gus-lopez said:


> It always used to be a problem. All the ones we were with specifically excluded non.residents. I had to shut 2 before we stopped telling them !



Once you have accounts set up online it is very easy to just open another. You have to tick the box to say you have read the 50 pages of t&c but most don't bother. It will say in there that you must be UK tax resident, it normally says that in the brief summary even if you do not read the full t&c's.

They do not ask me for any proof if opening new accounts if they already hold accounts for me, they ask for no utility bills or proof of ID. They would have my address in Spain of course but that does not necessarily mean I am resident in Spain.

So what if I just ignore the condition of being UK resident and open an account? If they find out I am not UK resident what are they going to do? Are they going to refuse to give me the interest? Are they going to keep all my money? Are they going to have me arrested and put in jail for the rest of my life? Who knows?


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## CapnBilly (Jun 7, 2011)

snikpoh said:


> It's absolutely not a problem. You need to ask if the particular bank/building society accepts the tax forms to allow interest to be paid gross. Even if they do, they will still hold onto 12%
> .


Under the new DTA ( when it comes into force) they won't retain the 12%.


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## extranjero (Nov 16, 2012)

snikpoh said:


> It's absolutely not a problem. You need to ask if the particular bank/building society accepts the tax forms to allow interest to be paid gross. Even if they do, they will still hold onto 12%
> 
> I'm in that situation myself. They really don't care where you live BUT they will no allow you to open new accounts. When my interest rate bonus expired on one of my accounts they simply converted the account to their (current) best deal - they did this for a number of years.
> 
> ...


My bank and building society refused to pay interest gross;they don't have to do it.
Although you are not supposed to be able to, some banks allow you to set up another account within the same bank, even though they know you live abroad.


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## chris&vicky (Feb 6, 2013)

extranjero said:


> My bank and building society refused to pay interest gross;they don't have to do it.
> Although you are not supposed to be able to, some banks allow you to set up another account within the same bank, even though they know you live abroad.


Is refusing to pay interest gross a problem if you can offset tax paid in UK against tax paid in Spain?


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## extranjero (Nov 16, 2012)

chris&vicky said:


> Is refusing to pay interest gross a problem if you can offset tax paid in UK against tax paid in Spain?


It doesn't seem to be a problem to my accountant; It's easier than trying to reclaiming it from UK with all the palaver it involves.


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