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Offshore banking for retirees


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I wasn't of thinking of retiring for another year but due to the impossible situation with regards to work in the UK right now I was thinking I might as well cash in my ISAs and retire now.

I just wondered what other UK retirees do about an offshore account so they don't incur UK taxes of investments? I already have a Thai bank account but I assume it will be safer to keep investments needed for an income out of Thailand and I certainly don't want to be paying 20% UK tax if I am not even in the country

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1 minute ago, Digitalbanana said:

Thanks. Looks like I can close my Nat West account.

I did, they made it so difficult it was like they didnt wont offshore customers, SB IOM are a breath of fresh air when it comes to customer service.

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6 hours ago, Kevin1908 said:

I was thinking I might as well cash in my ISAs and retire now.

I just wondered what other UK retirees do about an offshore account so they don't incur UK taxes of investments?

I just replied on your other thread.

ISAs stay free of tax - does not matter where you live. You just cannot put any fresh money into them if non resident.

You may have an issue with your ISA provider but if you don't tell them then no reason for anything to change.

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There is no need for offshore banking, and in many cases it can be a hindrance.  (For example, some brokerages won't accept transfers from an offshore account.  Plus offshore banks have a habit of closing down, making it a race to find a new home for your cash.)  So, definitely keep your UK bank account and use that.  Interest rates are so low at the moment that it's unlikely that you'll pay any tax anyway, unless you are as rich as Croesus.

 

I would say, open a second UK bank account as a backup in case your bank suspects you're offshore and closes your account.

 

It's unclear whether you're referring to cash ISAs or stocks & shares ISAs.  If you're cashing in because you need the money to start up in Thailand, then sobeit.  Otherwise, keep the ISAs and take income from them.  If you invest in funds, you will probably want to keep a UK account for them.  The range of funds that will be available to you offshore will be extremely limited, and you won't be able to open a new UK brokerage account.

 

If you want to make additional investments you could open an account with an offshore broker such as Interactive Brokers, Swissquote, &c..  Your investments, however, would probably be limited to stockmarket-listed investments (shares, ETFs, investment trusts).  (Swissquote has a limited range of, in my opinion poor, funds available, with relatively high charges compared with the UK.)

 

 

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15 hours ago, kwonitoy said:

https://www.expat.hsbc.com/

 

Offshore location in Jersey, UK banking regulations. No need for a UK address. Minimum opening and account balance required though.

I opened an account with HSBC Jersey(Expat) earlier in the year, It was extremely easy to open remotely requiring only British Passport and Bank Statement with Thai Address in English.  I went to my Kasikorn branch to get the address changed to English and printed out and stamped (like you would for immigration)

 

They did ask for my Thai Tax number though at some point during process.

 

 

 

Also check out CIM Banque in Switzerland, but they wanted some Notarizations, so I didnt go further with them.

 

Edited by Satcommlee
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16 hours ago, persimmon said:

I have heard that some banks will not allow accounts to function if the owner has no UK address - might be another good reason to keep a place in the UK . 

No need for a physical UK address, a postal address is easily acquired and some are free.

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On 12/7/2021 at 6:30 PM, Kevin1908 said:

I certainly don't want to be paying 20% UK tax if I am not even in the country

Just a small point about tax. 

 

As has already been mentioned ISAs are tax free. I don't know if there are any higher investment tax rates but for me, tax on profits from investments in the UK are 10%.

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6 hours ago, Surasak said:

No need for a physical UK address, a postal address is easily acquired and some are free.

Free UK postal address? 

 

A link would be nice! 

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Working on a Citibank Singapore application, requesting bank statement with Thai address, passport copy, online link application questionnaire with mobile OTP code sent, possibly need passport copy notarized, minimum USD balance required and able to open other currency accounts, move some money out of  Citibank Thailand and Canada......

Edited by CANSIAM
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On 12/7/2021 at 10:42 PM, Stocky said:

Singapore works for me. I moved my finances from Lloyds Jersey to HSBC Singapore twenty years ago, I've been largely happy with HSBC.

Ditto ...  

Edited by Tropposurfer
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On 12/8/2021 at 6:53 AM, Oxx said:

I would say, open a second UK bank account as a backup in case your bank suspects you're offshore and closes your account.

But UK bank accounts are liable to be closed arbitrarily here in Thailand as this 6-month-old thread shows:-

 

 

Edited by OJAS
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20 minutes ago, OJAS said:
On 12/8/2021 at 6:53 AM, Oxx said:

I would say, open a second UK bank account as a backup in case your bank suspects you're offshore and closes your account.

But UK bank accounts are liable to be closed arbitrarily here in Thailand as this 6-month-old thread shows:-

Which is precisely why I recommend having a second account as a backup.  Surely not too difficult a concept to grasp.

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Over the years I've had HSBC offshore accounts in Jersey, HK and Singapore. Ultimately was not happy with HSBC, and with the situation in HK being very unstable I decided to consolidate. Finally moved everything to Citibank IPB in Singapore. You will need a pretty decent amount of cash just to open the account, I showed up there in person and the account was opened same day.

 

WARNING: All these "high wealth" bankers will constantly pester you to invest in this and that. They are not a fiduciary!!

 

I'm not a savvy investor, I know only the basics - like buying and selling stocks and bonds. I became unhappy with HSBC because their recommended investments kept losing me money. When I complained they suggested I just move more cash to another fund - which lost money as well. Took me a few years but I finally realized they were making commission every time I bought into some investment, and could care less whether I profited or not. Citibank IPB did the same until I just stopped answering their calls and their LINE messages. I lose less money just holding cash now.

 

Edited by clokwise
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17 hours ago, Oxx said:

Which is precisely why I recommend having a second account as a backup.  Surely not too difficult a concept to grasp.

So kindly let us know how we can go about opening a second UK bank account from Thailand - bearing in mind the general requirement among the UK banking fraternity that an address in the UK (which not all of us, myself included, have access to these days) is a crucial prerequisite.

Edited by OJAS
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7 minutes ago, OJAS said:

So kindly let us know how we can go about opening a second UK bank account from Thailand

You can't.  However, my recommendation of a backup bank account was in response to the OP who is still in the UK.

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On 12/9/2021 at 2:57 PM, chilly07 said:

Wise operate as a bank as well as forex. Only drawback is they won't yet send a debit card to Thailand. I get mine courtesy of my brother

I have 2 pensions 1 paid monthly and 1 annually, the Companies will not pay the money into Wise on the basis that they are a Finance House and not a bank.

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17 hours ago, clokwise said:

..became unhappy with HSBC because their recommended investments kept losing me money...


...Took me a few years but I finally realized they were making commission every time I bought into some investment..

My experience with HSBC Singapore has been different, I had a good relationship manager who gave me some very good recommendations when I first moved my finances to Singapore.

 

Then since online banking you can manage your own portfolio, and commission on buying funds is 1% or less.

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On 12/8/2021 at 10:35 PM, persimmon said:

I have heard that some banks will not allow accounts to function if the owner has no UK address - might be another good reason to keep a place in the UK . 

It's a nightmare without an address in the UK

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On 12/9/2021 at 3:29 PM, Surasak said:

No need for a physical UK address, a postal address is easily acquired and some are free.

On 12/8/2021 at 10:35 PM, persimmon said:

I have heard that some banks will not allow accounts to function if the owner has no UK address - might be another good reason to keep a place in the UK . 

It's a nightmare without an address in the UK

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5 hours ago, Oxx said:

You can't.  However, my recommendation of a backup bank account was in response to the OP who is still in the UK.

Fine if the OP is planning to stick around in the UK after his retirement. But I get the impression that he isn't.

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