In 2025, many British expats are re-evaluating their financial strategies, especially when it comes to efficiently saving on UK taxes. One of the most common questions we receive at Expat Mortgages UK is whether expats can keep their UK ISAs (Individual Savings Accounts) and whether they should do this. What’s right for you will depend on your tax residency status, financial goals and how ISAs compare to other investment options.
So, what are the possibilities and what makes sense for expats regarding ISAs in 2025?
What is a UK ISA?
The Individual Savings Account (ISA) is a UK savings and investment option that lets individuals grow their money tax-free. This means that no tax is paid on interest, dividends, or capital gains. During the 2025/26 tax year, individuals can contribute up to £20,000 across all types of ISAs combined, including Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs and Innovative Finance ISAs.
ISAs are a popular tool among UK residents who want to build savings tax-free and help achieve long-term financial goals like buying a home or planning for retirement.
Are Expats Able to Open a UK ISA in 2025?
For tax purposes, you must be a UK resident to open a new ISA or make contributions to an existing one. Once you become a non-resident, which means you live abroad and are no longer subject to UK tax rules, you won’t be able to make further payments into your ISA. However, you don’t have to close your ISA. You can keep it open, and any interest or returns will still be tax-free in the UK.
This rule applies regardless of your citizenship. Even if you hold a British passport, what’s important is whether you are currently considered a UK tax resident.
What Happens to Existing ISAs When You Move Abroad?
If you opened an ISA before you left the United Kingdom, you can still keep it open and benefit from tax-free growth. However, you need to stop contributing to it from the date your UK tax residency ends.
Your ISA account can remain active, with your funds managed by your chosen provider. You will also continue to enjoy the UK’s tax benefits on the account. However, the country where you reside may apply its own tax rules to your ISA, so it’s important to consult a qualified tax advisor to avoid the risk of double taxation.
Should Expats Consider Opening a UK ISA Before Moving Abroad?
If you’re planning to relocate but will still be considered a UK tax resident, it’s wise to maximise your ISA contributions before your status changes. By contributing up to the full £20,000 allowance in the tax year prior to leaving the UK, you can secure the tax advantages, allowing your investments to become free from future UK tax liabilities.
This strategy is especially beneficial for high-earning professionals who expect to work abroad but want to maintain UK-based assets.
Alternatives to ISAs for British Expats
While ISAs are restricted for non-residents, other investment alternatives may be suitable for UK expats, particularly individuals who still have interests back home. These can include UK expat mortgages or asset investments.
1. UK Property Investment Through Buy-to-Let Mortgages
Buy-to-let mortgage UK expat options are becoming increasingly popular amongst expats who want to maintain a financial foothold in the UK. These investments can generate passive income, the chance of capital appreciation and can be funded through competitive expat mortgage products from across the whole UK market.
2. International Savings Accounts
Some international banks provide financial savings accounts designed for expats, which give you high interest rates and can provide tax-efficient returns, depending on your jurisdiction.
3. Offshore Investment Bonds
For long-term savings, offshore bonds provide a tax-efficient structure and are especially appealing to individuals with complex residency situations.
Conclusion: Is a UK ISA a Good Investment for Expats?
While ISAs are an excellent savings vehicle for UK residents, tax residency rules limit their benefits for expats. However, if you are currently in the UK but plan to travel abroad soon, it’s a good idea to maximise your contributions before your residency status changes. If you already live overseas, you can still explore other investment options, such as purchasing property in the UK or obtaining a buy-to-let mortgage as an expatriate.
Whatever you decide, Expat Mortgage UK will guide you through 2025 and beyond to introduce you to the best opportunities and responsible financial alternatives.
Need Help Making the Right Investment Decision as an Expat?
Speak to the experts at Expat Mortgages UK if you’re looking for specialist help in making investment decisions as an expat. Whether you’re looking to invest in UK property, explore buy-to-let mortgage options or protect your financial future abroad, we’re here to help. Contact us now for trusted, personalised guidance for your specific needs.