Novia Global has launched a stocks & shares Isa to address the problem of expats’ savings being left in ‘suspended animation’.
The Novia Global Stocks and Shares Isa has been designed to help expats invested in Isas who can no longer add additional funds, and any gains derived from the Isa, as they could be subject to tax in their country of residence – a concept called ’suspended animation’.
The offering is intended to plug what Novia Global called “a significant gap in the market” by allowing Britons who have moved or work abroad to have their Isas managed alongside their other assets.
According to Novia, the new Isa is also suitable for expats who plan to – or who could – return to the UK and would subsequently benefit from a tax-efficient product.
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Novia was recently approved by the HMRC as a UK-registered Isa manager, meaning expats can transfer their existing Isas and incorporate them into broader Novia accounts.
“The problem of expats’ Isas entering what amounts to a state of suspended animation has been recognised for some time,” said Chris Skelhorn, sales director at Novia Global.
“We know from our conversations with advisers and clients that it has been a matter of frustration, particularly since so few meaningful efforts have been made to tackle the issue,” he added.
“It’s still the case that only UK residents can set up or contribute to an Isa. The starting point here is to transfer an existing Isa, not to open a brand new one.”
