can I hold a UK building society account when living abroad?

Question

i'm thinking of moving abroad but would like to maintain my uk account

Answer 1

We do and we have lived in Holland for 7 years

Answer 2

There is no problem holding a UK bank account while resident overseas. The interest earned on the account is still taxable, however, you could use the personal allowance in the UK against this income. You could also, if they accept it, give your bank a form R105 which allows them to pay you gross interest. If bank interest is going to be your only UK income while non resident in the UK, Section 128 will come into effect. This is basically a concession for non residents who only have investment income in the UK. In a nutshell, it says that tax due is limited to the amount of tax deducted at source. So, if your bank accept the R105 and pay you gross, there will be no further tax on the interest. You could have millions in interest but because of S128, you would not pay a penny in tax.

Answer 3

Yes, but it may be best to use a UK address as a communication address.

Depending on what country you are going to, you might also be able to claim back the tax that is charged on the interest on your UK account if you are no longer paying UK interest.
You would probably be able to get details from your local inland revenue office.

Answer 4

Yes, but chances are HMRC will use the account as evidence that you have not yet 'emigrated' to another country and will try to Tax you on your foreign earnings ..

You could end up paying both UK Tax and local Taxes (you will have to claim back local Tax under the 'double taxation agreement' which will be a right pain).

Answer 5

There is no problem, but if you want to claim non residence, it's best to use the overseas address, otherwise you'll confuse HMRC (Poor little dears).