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FSCS UK deposit guarantees scheme.


oldgit72
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Hi,

 

Just had a panic moment as I was about to send off my P85 form to the tax office. Can anyone clarify the position of non-UK residents with regard to the 50k deposit guarantee scheme for UK financial institutions registered with the FSCS? In other words, will I get my 50grand back if I invest in  a UK bank that goes bust if I am no longer tax resident in the UK? I have tried the FSA and FSCS web sites but can't find anything definitive. If anyone can provide a link to something in black and white I would appreciate very much.

 

Thanks

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I suggest you have a wander through google but I'm almost certain the guarantee is independent of the residence of the holder. See as a starting point http://www.fscs.org.uk/ which details the scheme - this doesn't seem to mention any exclusions of where the customer lives and I'm pretty sure it would.

To support this consider the these recent events -

1.Icelandic bank goes belly up - huge fuss because the Icelandic government is refusing to cover UK savers - it is made very clear that this is their obligation, but UK gov. will cover if necessary.

2.Irish government fully guarantees all deposits in Irish banks - they make it clear that UK depositors are covered by this better guarantee - this results in large amounts of saving pouring into Irish banks and much whining about it not being fair from the rest of the EU.

3. Big fuss over Ilse of Mann banks which are not covered by the UK guarantee even though many (most?) depositors are UK mainland resident.

All this would strongly suggest that it is location of the bank (or rather the banking licence) and not of the customer that controls. The only possible problem I can see is if you had deposits in, say, an Icelandic bank that does belly up and the Icelandic government refuses to pay up. Do you seek cover from the UK (where you openned the account) or france where you are resident.

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It's simple. Everyone is covered unless you are not!!  Seriously though, it looks as though unless you are investing as a business , are directly related to a bank director (bad luck Mrs Goodwin) or in some way responsible for the financial institutions downfall(ditto), then you should be allright. Mind you, if/when the IMF take over UKPLC, then who knows?
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[quote user="sweet 17"]...can you sort of er...............summarise it all...[/quote]

Only when someone has counted all the hypertext links involved in this and all other linked documents, and demonstrated that there are no circlar links.

I've been caught out before.  [:D]

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