Can I keep or contribute to an ISA or SIPP when I move abroad?

Key points

• New ISA contributions must stop once you become non-UK resident.
• Existing ISAs can remain open and continue growing free of UK tax.
• Overseas tax authorities may tax ISA dividends, interest, and capital gains.
• SIPP contributions up to £3,600 gross (£2,880 net) are permitted for up to 5 tax years post-departure.
• Always notify your ISA and SIPP providers when changing your tax residency address.

ISA rules when moving abroad

Under HMRC regulations, you cannot make fresh subscriptions into a Cash ISA, Stocks & Shares ISA, Innovative Finance ISA, or Lifetime ISA (LISA) for any tax year in which you are non-UK tax resident. The only statutory exception is for Crown servants (such as armed forces or diplomatic personnel) posted overseas and their spouses or civil partners.

You do not have to close existing accounts. They remain sheltered from UK Income Tax and UK Capital Gains Tax. However, UK investment platforms may restrict non-resident accounts—such as freezing trading, blocking fund purchases, or declining to service clients residing in specific jurisdictions.

• Subscriptions made in the tax year of departure before non-residence applies remain valid
• Automatic regular monthly direct debits must be cancelled upon becoming non-resident
• Lifetime ISA (LISA) bonuses cannot be claimed by non-residents; unauthorized subscriptions trigger a 25% withdrawal charge
• Transferring existing ISAs between providers remains permitted, subject to provider acceptance

Foreign tax treatment of UK ISAs

The tax-free status of an ISA is purely a creature of UK domestic law. Double taxation treaties do not extend tax exemption to ISAs in other jurisdictions. Once you become tax resident in another country, that country's tax authorities will usually tax the underlying dividends, interest, and capital gains within your ISA.

In the United States, the IRS treats UK collective investment funds held in an ISA as Passive Foreign Investment Companies (PFICs) and may treat the ISA as a foreign grantor trust, triggering complex reporting on IRS Forms 8621 and 3520. In European countries like Spain, France, and Portugal, ISA income and capital growth must be declared on annual domestic tax returns and overseas wealth declarations (such as Spanish Modelo 720).

SIPP contributions and pension tax relief abroad

Under Section 188 of the Finance Act 2004, if you move abroad and have no UK relevant earnings, you can still contribute up to £2,880 net (£3,600 gross after 20% basic-rate tax relief is added by HMRC) into a UK Self-Invested Personal Pension (SIPP) for up to 5 consecutive tax years after the tax year of departure, provided you were a UK resident when the pension scheme was established.

If you have relevant UK taxable earnings (such as ongoing UK employment or trading income), you can contribute up to 100% of those UK earnings or the annual allowance. Once the 5-year window expires without UK taxable earnings, further personal contributions receive no UK tax relief.

• Basic-rate tax relief (20%) is claimed by the SIPP provider and credited to the pension pot
• Higher or additional-rate relief can only be claimed against UK taxable income via Self Assessment
• SIPP drawdowns and lump-sum withdrawals made while non-resident may be taxable in your country of residence or subject to UK temporary non-residence rules