SIPPs - better than ISAs?

[mike]

Another tax related issue to take into account, is if one decides to retire overseas.

No other country recognises the tax status of UK ISAs, so the tax relief one would get on the income or capital gains in the UK is lost and local taxes are payable.

For a SIPP, the tax relief has already been given on contributions, and as in the UK, tax is paid as income is taken subject to local tax rules.

So the tax relief is kept with a SIPP, but is lost with ISAs.

[rhys]

Retiring overseas might be desirable, either for those who are wealthy, or those of lesser means who have no children (or at least none in the UK). Many people actually find it cheaper to live overseas.
Overseas residency might also be a consideration for a beneficiary of an offshore trust, who would otherwise be taxed in the UK on the remittance basis.

Genuine tax free countries are either rather expensive or lawless.
https://nomadcapitalist.com/global-citizen/countries-no-income-tax/

Other countries charge territorial tax but (no tax on foreign sourced income). As a non resident UK citizen, you could keep your ISA, although would not be allowed to make further contributions.

Even European countries can have more appealing tax rates than the UK.
https://nomadcapitalist.com/finance/low-tax-countries-living-europe-2022/