Keeping a UK bank account active while living overseas is a common concern among British expatriates.
There are several reasons for wanting to do so, including receiving UK pension payments, paying for properties or financial commitments back home, or simply for ease of access to funds when back visiting friends and family.
Understand Your Bank’s Policy With Regards to Expats
The first step in maintaining your account is to understand your bank’s specific policies regarding non-resident account holders.
Banks in the UK have varying regulations and requirements for expats, and knowing where you stand is key.
Barclays, for example, no longer offers personal current or saving accounts to customers who have an address registered with them outside of the UK.
However, other high street banks, such as Lloyds Group and Santander (at the time of writing) do allow expats to maintain their UK accounts.
Before your move, ideally, or after if you have not done so, contact your bank to discuss your status change and inquire about any documentation or procedural updates required to keep your account operational from abroad.
This is vital as sudden foreign transactions could flag your account for fraud, leading to it being frozen.
Update Your Contact Information
Ensuring that your bank has your current contact information, including your overseas address, is crucial.
This not only helps in keeping your account secure but also ensures that you receive important communications regarding your account without delay.
Most banks may have online portals where you can update your details easily; however, it’s always a good idea to confirm these changes directly with your bank.
Be Aware of Tax Implications
As an expat, it’s important to understand the tax implications of holding a UK bank account while residing abroad.
Depending on your country of residence and its tax treaty with the UK, you may be subject to taxation on the interest earned in your UK account.
Consulting with a tax professional who understands the intricacies of expat tax affairs can provide clarity and help you navigate these complexities.
Regular Activity
Keep your account active by making regular transactions.
This can be as simple as transferring a small amount between accounts or setting up a direct debit.
Regular activity helps prevent your account from being flagged as dormant, which could complicate access to your funds.
The Bottom Line
In conclusion, keeping a UK bank account active as an expat requires a proactive approach.
By understanding your bank’s policies, updating your contact information, leveraging online banking, considering mail forwarding, understanding tax implications, and maintaining regular account activity, you can ensure seamless financial management from any corner of the globe.
Further Reading
Five big tax mistakes made by British expats and how to avoid them
Navigating the UK Temporary Non-Residence Rules: A Guide for Expats
Coming Home: 10 Financial Steps for Expats Returning to the UK
