Freetrade & UK residency

Hi Freetraders!

Reading help section what if I move abroad and this thread Tax Question - ISA treatment when moving abroad I concluded the following:

  1. Having an ISA account, but not being a UK resident anymore, will still allow me to buy and sell shares inside my ISA using Freetrade, with the money I have deposited while I had the residency. However I will not be able to deposit any new funds.

  2. Losing the UK residency while having a regular Freetrade account will end up in me having to sell all of my assets and Freetrade to close my account.

Is this correct (assuming I moved to an EU country not yet supported by Freetrade)?

You are correct on point 1 but I believe you are wrong on point 2. As long as you still have an NI I believe you can keep your account.

Isn’t NI number something that stays with you irrelevant to your residential status. I mean you can’t get rid of it even if you wanted to?

I’m asking because I might have an opportunity to work abroad for a while, which might cost me my UK residency, that though I don’t mind since I don’t want to be taxed in UK. But I started thinking about all the sh** I can get with the various broker platform I opened. I’m not a serious trader or anything, just opened a lot of accounts to experiment and learn on the way.

Yes exactly (I was just hedging my comment). For example, I know people who do not live in the UK anymore but can still use Freetrade. You are correct you cannot open a new ISA or add to an existing one but you can leave in place existing accounts (the investments within your ISA can change as much/as little as you choose).

You just have to be aware of the tax implications (i.e. you can lose your tax free threshold).

You are wrong in 2. and a little in 1. too.
You can have accounts with various brokers all over the world theoretically and do not need to sell any assets or close accounts. The only thing you have to look out for is paying the correct taxes.
If you have an ISA here and become resident somewhere else, the capital gains from your ISA still need to be taxed in your new country of residence. Same goes for a normal account. If you move to Germany and receive dividends in a UK account you will need to mention this on your yearly tax return to be charged 25%, otherwise you’d be committing tax fraud (in 1. and 2.). However, many countries have double taxation agreements that make this easier.

This comes from Freetrade FAQ that I linked to in my question:

You currently need to be a UK tax resident to use the app. If you move abroad and are no longer deemed a UK tax resident, please let us know as we’ll need to close your account.

My question was more focused for UK, I know that ISA’s don’t have the same super powers abroad :slight_smile:

Interesting, so this is a Freetrade policy. :slight_smile: