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For Some reason my accounts stated Germany as my residing country! I am not sure why as I live in the U.K. I have tried to see if I can amend this to correct my location but have not found any help so far?
Paypal is country specific so you have to open a paypal account in the country you reside in and add an address / phone number / and bank accounts from within that country.
As you would not be able to verify your account, its unlikely you can close it but you could contact customer services and see if they will do that for you.