6.05% Return On Sterling Investment

[topfield]

Interest from UK "OnShore" Savings accounts is classified as "UK derived income" and therefore liable for uk tax. The R105 only defers this tax payment, until a self assesment is completed and tax liability calculated from here.

However there is tax to be paid on interest from onshore UK savings accounts.

The only way to not pay UK based income tax, is to bank with offshore savings accounts.

Just spoke the HMRC to clarify this point.

True but you have your personal allowance of around 5K so if you dont exceed that and have no other UK income you will pay no UK tax

By the way Arran if you want meaningful advice it would help if you tell us whether you are UK resident or parhaps have been resident for years in Thailand.. Who knows ! Can you provide any info on this ?

hi Topfield,

I am UK resident until the end of the this year or early next year. Then will re-locate to Thailand.

This year I spend putting my affairs into order, my UK tax allowance will be taken up by UK rental income. I have £300k+ to find a home for with low risk and maximum return, this together with UK rental income is to be used as my income.

Arran

Now understand...you are in the UK and not Thailand.

My advice you place the funds on deposit in the IOM but request interest payments be deferred. Then after you have become truly non UK resident you are free to take the interest tax free.

Your UK rental income will always be subject to UK tax but remember you have your personal allowance and so would your UK wife and kids so you may be able to wangle their personal allowances as well !

[RAZZELL]

Interest from UK "OnShore" Savings accounts is classified as "UK derived income" and therefore liable for uk tax. The R105 only defers this tax payment, until a self assesment is completed and tax liability calculated from here.

However there is tax to be paid on interest from onshore UK savings accounts.

The only way to not pay UK based income tax, is to bank with offshore savings accounts.

Just spoke the HMRC to clarify this point.

True but you have your personal allowance of around 5K so if you dont exceed that and have no other UK income you will pay no UK tax

By the way Arran if you want meaningful advice it would help if you tell us whether you are UK resident or parhaps have been resident for years in Thailand.. Who knows ! Can you provide any info on this ?

hi Topfield,

I am UK resident until the end of the this year or early next year. Then will re-locate to Thailand.

This year I spend putting my affairs into order, my UK tax allowance will be taken up by UK rental income. I have £300k+ to find a home for with low risk and maximum return, this together with UK rental income is to be used as my income.

Arran

Now understand...you are in the UK and not Thailand.

My advice you place the funds on deposit in the IOM but request interest payments be deferred. Then after you have become truly non UK resident you are free to take the interest tax free.

Your UK rental income will always be subject to UK tax but remember you have your personal allowance and so would your UK wife and kids so you may be able to wangle their personal allowances as well !

How long does it take before the HMRC consider you to be "non-resident"? 3 years?

RAZZ

[ArranP]

Non resident means you spend no more than approx 90 days (maybe inclusive days of travel) in the UK year on year.

Fill out and submit a P85 to inform them of your intent to leave the UK.

Also you can call the Non Resident UK Help Line for an informal chat.

http://www.hmrc.gov.uk/contactus/helplines.htm#37

HMRC Residency (Tax matters for those not-resident in the UK)

0845 070 0040

Overseas

+44 151 210 2222

Mon – Fri 7:30am to 5pm

Closed Bank Holidays.

Answers queries regarding Income Tax / Capital Gains Tax for customers who live or work abroad.

[ArranP]

What can one expect to pay to an IFA ?

[Steve2UK]

What can one expect to pay to an IFA ?

It will vary according to the IFA and the type of investments - the IFA will earn his/her "take" from fees or commissions or a mixture of the two. In the case of commissions, they might even look at splitting those with you. In an earlier post, I gave you the means to locate IFA's by location and/or areas of expertise. With all due respect, as you are in the UK, do you not think it's time you spoke to at least a couple of them so that you can form a first-hand impression of what they have to offer and what it would cost - without incurring any liability until you decide to proceed? They want your business and will compete in terms of performance and cost to get it - you have the upper hand, so use it.

While it's good to get a generalised picture of the options from other members' experiences, every situation is unique and special - I really don't think you are going to find a ready-made "formula" to copy 100% from anyone on here..............

[ArranP]

Yes, I'm busy reading http://www.unbiased.co.uk/, started last night. Thanks.

And as you say will contact a few of them to get a feel.

[ArranP]

May I ask, to draw a comparison:

i) what level of return in percentage terms are we getting from our capital investments?

ii) did we go low, medium or agressive ?

ii) cash / bonds / equities or commodities ?

[Khun Bob]

Arran

May I ask how you made 300K+, by the age of 35 ? Thats some achievement ! I'm 4 years older than you and 100K shorter, and have a property too...

[ArranP]

ooh, I get to blow my own trumpet :-)

Like Microsoft is to the domestic computer, SAP is to the business www.sap.com.

The SAP IT Contracter in UK/Europe earns upwards of £140,000 per year + overtime.

Also, I got into property around 2001, just prior to the boom.

[ArranP]

I made a little bit more. the 300k is the liquid capital I'm investing, I have capital tied-up as deposits in UK properties.

[smilingjim]

I made a little bit more. the 300k is the liquid capital I'm investing, I have capital tied-up as deposits in UK properties.

Dear Arran,

I've just recently returned to the UK after several years in Thailand. I'm a tax specialist working for a firm of chartered accountants. We have our own IFA. I'll be happy to discuss this with you. if interested PM me.

Jim

[Khun Bob]

SAP is sweet !

But has the bottom fallen out of the contracting market in the UK ? Seems the UK government are doing all they can at the moment to make it hard for contractors to avoid paying tax and not get the same benefits as a permie. I work in a large ITC company, and we just get indians into the UK to do a mediocre job, get the money and it is support that gets the challenge, together with little projects to mop up problems that could have been easily addressed pre-release...

I read the book "No Silver Bullet" years ago and all I can think now on the project I am on, is the wisdom gained from this IBM Mainframe OS project...

This is a moment of regret. I was a specialist in software testing back in '95, prior to the dreaded Y2K bug. Some of the contract rates quoted then were above 1K per day in the city. And what did I do....

[cmsally]

My advice you place the funds on deposit in the IOM but request interest payments be deferred. Then after you have become truly non UK resident you are free to take the interest tax free.

Does this still stand considering HMRC have now gained access to not only Barclays offshore acct details, but at least 4 others incl. HSBC.

Anyone have any more info on this matter?

[Khun Bob]

Very good point and I have stated this concern elsewhere here....

Basically if you dont want then to know you need to have a bank that has little or no presence in the UK and/or out of the circles that the UK government has access to ie some other tax havens are part of the commonwealth, but I may be going a bit far here. There are some banks in the IOM or Channel Islands that are headquartered outside of the UK...

Topfield has mentioned that some banks in the Mid East may be good - now i see he is banned (wonder what happenned there...)

Nationwide - a UK building society - has a branch in IOM and they have an account that calculates interest and when you choose to close the accounts credits it to your account - this is a conventient way to avoind recieving when you are resident and then actually receiving whe you are non-resident. This I beleive is the bank Topfield is referring to. as far as I am aware the gov can only tax you on income you have actually received - not future income. If they know how muchg you have in there and what you will receive in the future could they tax you as if you have actually received it ? Think that a tax expert would be the best - or why not just call the bank concerned and ask them - maybe they dont know yet...

I've not heard anything lately about the info the gov is getting - but I would assume they have it and will be contacting people soon. Barclays set a precedent, so they will use this against all targets as i guess the pickings are rich and maybe the government want to give something back for the 10% tax credit removed from dividends in pensions back in '97 !

Scary stuff, but avoidable - problem is getting a good return and working out a way of crediting it there in the first place. If the gov can get access to your UK account and they see transfers to an account in your name in IOM what they going to think - of course I gambled it all away/bounght a mansion in montenegro and got scammed - ok prove it ! oops..

My advice you place the funds on deposit in the IOM but request interest payments be deferred. Then after you have become truly non UK resident you are free to take the interest tax free.

Does this still stand considering HMRC have now gained access to not only Barclays offshore acct details, but at least 4 others incl. HSBC.

Anyone have any more info on this matter?

Edited April 4, 2007 by Khun Bob

[Naam]

Topfield has mentioned that some banks in the Mid East may be good - now i see he is banned (wonder what happenned there...)

i am wondering too.

[Naam]

Does this still stand considering HMRC have now gained access to not only Barclays offshore acct details, but at least 4 others incl. HSBC.

Anyone have any more info on this matter?

if you fear the british taxman and insist (for reasons beyond my grasp) on banking with a british bank you should select your bank in a jurisdiction where bankers are sentenced to prison terms and banks closed if they violate the banking secrecy laws; e.g. Singapore.

[Bredbury Blue]

Could some one summarise this long topic for me.

1. What is the best rate on offer onshore UK or offshore that's currently available (i'm looking to deposit a monthly amount over 500 quid)?

2. As an expat, am i taxed on onshore UK accounts?

3. Personal question. I get paid in dollars from the US to where ever i want to put it. What's the best deal around on US$ accounts available to me (i'm a Brit if that makes any difference)?

Cheers.

Edited April 4, 2007 by Bredbury Blue

[Naam]

Does this still stand considering HMRC have now gained access to not only Barclays offshore acct details, but at least 4 others incl. HSBC.

Anyone have any more info on this matter?

if you fear the british taxman and insist (for reasons beyond my grasp) on banking with a british bank you should select your bank in a jurisdiction where bankers are sentenced to prison terms and banks closed if they violate the banking secrecy laws; e.g. Singapore.

[Khun Bob]

Pretty serious stuff for breaking the banking secrecy...

HSBC, as far as I am aware, are headquartered in the UK. I have a copy of HSBC Singapore offshore savings account terns and conditions and even without UK government intervention, they seem to state that your information can flow pretty much anywhere in the Group - I take this to be to any country that has an HSBC - scared me off enough to defer making a deposit with them, in light of the announcement about 3 months ago about the UK govs intention to breathe down some more UK based banks for assetts held offshore by UK resident citizens.

Dr Naam, care to give some recommendations for banks in singapore - please PM me if you do. Thanks very much in advance. Banks in any other countries, that are secure with information, I would be interested in as well.

Does this still stand considering HMRC have now gained access to not only Barclays offshore acct details, but at least 4 others incl. HSBC.

Anyone have any more info on this matter?

if you fear the british taxman and insist (for reasons beyond my grasp) on banking with a british bank you should select your bank in a jurisdiction where bankers are sentenced to prison terms and banks closed if they violate the banking secrecy laws; e.g. Singapore.

Edited April 4, 2007 by Khun Bob

[Naam]

Dr Naam, care to give some recommendations for banks in singapore - please PM me if you do. Thanks very much in advance. Banks in any other countries, that are secure with information, I would be interested in as well.

no problem to PM you Khun Bob but perhaps this topic is of interest to other people too. basically singaporean banks can be divided into two groups:

1) the high and mighty arrogant² independent subsidiaries of swiss and german multinational banks which frown at you if you if you humbly request that they accept your business although your net worth is below one million dollars. they are more open if a potential client is recommended by an existing client and in these cases one is able to discuss terms, conditions and (most important) fees. banks of this category are scared sh*tless of Uncle Sam's IRS as well as of "sanctions" Washington could impose on banks accepting drugdealers, moneylaunderers and supporters of al-Qaeda. they are also wary of potential tax problems their clients might have and therefore basically reject so-called "U.S. persons" if those refuse to open a corporate account under the auspices of a trust to hide their identity. on top of that their "secrecy" paranoia forces a client to succumb to utmost stupid bureaucratic rules and regulations.

example: more than a year ago i had problems with my e-mail provider. my bank stubbornly refused to accept any instructions from any other e-mail account till a bunch of documents were signed and sent back by courier. the ridiculous fact was that any of my incstructions issued by phone were carried out

positive is that you can ask for various services (free of charge) which are not in line with banking business at all and these services are provided free of charge.

2) the other category are singaporean, british and american banks which provide bread-and-butter service to the average investor/client, have no big hurdles for opening accounts but are rather easy to deal with. they are of course not the choice of the discerned investor who wants to deal not only in common but also in uncommon and perhaps illiquid assets.

bottom line: it all depends what you want.

[Bredbury Blue]

Could some one summarise this long topic for me.

1. What is the best rate on offer onshore UK or offshore that's currently available (i'm looking to deposit a monthly amount over 500 quid)?

2. As an expat, am i taxed on onshore UK accounts?

3. Personal question. I get paid in dollars from the US to where ever i want to put it. What's the best deal around on US$ accounts available to me (i'm a Brit if that makes any difference)?

Cheers.

bump

[Naam]

the high and mighty arrogant² independent subsidiaries of swiss and german multinational banks which frown at you if you if you humbly request that they accept your business although your net worth is below one million dollars.

stakes reduced and warning of money laundering! i received this e-mail yesterday:

Dear Dr. Xyz,

Thank you for your e-mail dated April 3, 2007. Please take note that for the account transfer we do need an official signed letter from your side. We also do accept a scanned letter (PDF file) where your personal signature can be identified. Right after receipt of the transfer letter we will initiate the fund transfer with immediate effect in favour of your account with UBS AG Singapore, a/c no. 1234567, in the name of XYZ Global Inc..

We are very pleased to read that you wish to keep your relationship with Credit Suisse Singapore. Please take note that the miminum amount to maintain an account with Credit Suisse Singapore is equivalent CHF 1 million (Swiss Francs one million). For that reason please let us know your intended further use of the account CIF 789012345 and the respective planned new funding.

Please be informed that Credit Suisse Singapore is according to MAS regulations (Monetary Authority Singapore) not allowed to keep accounts open for so called 'flow-through-transactions' (crediting/debiting of amounts on the account within a short period of time). If such transaction will be initiated the respective account would be blocked with immediate effect and legal investigations will apply.

Thank you in advance for your understanding and your cooperation.

Regards,

CREDIT SUISSE SINGAPORE BRANCH

International Wealth Management

One Raffles Link # 05-02,

South Lobby

039393 Singapore

[Khun Bob]

Dr Naam

Thanks for giving me some insight into banks I have little knowledge and experience of.

Interesting comments on the IRS - I can see the UK going a similar way - allready they are leaning on banks here for information on offshore accounts. I have done some research on expatriation, but there are not too many options...

KB

[highchol]

Best secure sterling investment I can find is 6.05% from Anglo Irish Bank (Isle Of Man - http://www.angloirishbank.co.im/personal-b...nd-account.asp)

Does anyone know if this can be improved/beaten? I'm investing a lump sum and then living off the interest.

Regards

Arran.

try here 6.15%

http://www.moneyextra.com/news/news-bonds-get-028246.html

[mlwiley]

Brokers are safe. They dont pay you much of an interest if any but they are safe. Nobody of the traders, accountholders for example at Refco has lost one single dime.

------

= BULL_STIH² ! one more clown who spreads rubbish

Then please help me find the $55 from my Refco account. If I spent a great deal more money in phone calls, mail, and more importantly, time, I may be able to get it back. As far as I'm concerned, that ammounts to 550 "single dimes" lost and I pity other account holders who had more substantial money tied up with them. It's funny how I keep getting solicitaion emails from FXCM, whom Refco was a subsidiary. No thanks, <deleted> me once shame on you, <deleted> me twice shame on me!

Kudos for calling it like it is Dr. Naam!

[PCA]

Brokers are safe. They dont pay you much of an interest if any but they are safe. Nobody of the traders, accountholders for example at Refco has lost one single dime.

------

= BULL_STIH² ! one more clown who spreads rubbish

Then please help me find the $55 from my Refco account. If I spent a great deal more money in phone calls, mail, and more importantly, time, I may be able to get it back. As far as I'm concerned, that ammounts to 550 "single dimes" lost and I pity other account holders who had more substantial money tied up with them. It's funny how I keep getting solicitaion emails from FXCM, whom Refco was a subsidiary. No thanks, <deleted> me once shame on you, <deleted> me twice shame on me!

Kudos for calling it like it is Dr. Naam!

really, you spent 550 bucks to get 55 back? Wow. Are you a private trader using a Refco account

for settle and clear your orders? I still work together with my Refco Brokers. PM me your account number and they will check that. Shouldnt be a problem as you have nothing to hide or to lose there.

Not to understand this wrong, I am not taking party of Refco here and all the sh.t what was going on there.

There are thousand things to say about Forex and Forex"brokerage" but I dont really get the context in your message here.