Split year treatment and ISA allowance

[caseymac]

Hello
I returned to the UK in Sept 2015 after spending a few years abroad. I have split year treatment with respect to tax residence for 2015/2016. Am I still allowed the full ISA allowance for 2015/2016?
Thanks

[maths]

For a tax year to qualify as a split year for an individual requires that the individual is resident in the UK for that tax year.

Hence, I would suggest that the full ISA allowance is available; i am unaware of any ISA pro-rating.

Others more qualified than me re ISAs may have a different view.

[etf]

Notes copied below from HMRC's ISA guidance:

If you move abroad

If you open an Individual Savings Account (ISA) in the UK and then move abroad, you can’t put money into it after you move (unless you’re a Crown employee working overseas or their spouse or civil partner).

However, you can keep your ISA open and you’ll still get UK tax relief on money and investments held in it.

You can pay into your ISA again if you return and become a UK resident (subject to the annual ISA allowance)

Suggest you don't put revenue generating ideas in George's head-he has a deficit to fill!

KR

etf

www.theexpatriatetaxfactory.com

[etf]

This HMRC advice was published in 2013 and is a bit clearer than the earlier HMRC paragraph:

Could HMRC clarify if individuals otherwise so entitled may invest in an ISA during the overseas part of a split year?

Under the new Statutory Residence Test (SRT), the investor is either resident or not resident for the whole tax year. Their residence status cannot change within a single tax year so, even in the overseas part of a split year the investor is still UK resident. Therefore an ISA investor can open and subscribe to an ISA (if they are UK resident) in the overseas part of a split year as the year is not split for this purpose.

KR

etf

www.theexpatriatetaxfactory.com