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Posted (edited)

Hi all

Hope someone out there can help me get my head round all this!

Some background

I have been in LOS for nearly a year now, renting my house in UK. I have just accepted an offer to sell house and am trying to work out what to do with the cash 170K.

I plan to stay in LOS for the foreseeable future and want to recive a monthly income from the interest.(tax free if possible!) This will be my only income allthough i plan on setting up a small bussiness in LOS for my Thai GF seperate funds available for this.

I am currently banking with Nationwide using my UK address that I am selling.

I do have another address i can use for corespondance in UK, my parents.

I understand i qualify for non-resident status is i plan to be outside UK for 330 days per tax year.

Have looked at both onshore and offshore accounts and interest rates seem to be much the same 6.5-6.6% fixed for 1 year paid monthly.

My questions are

1) Onshore I fill out form R85 interest is paid gross use my parents UK address. Interest paid monthly to my Nationwide account I will be drawing from ATM as i do now. This looks the most simple to set up but will I still be liable for Tax on savings income?

2) offshore looks a bit more complicated i think i can still self cert tax exempt as Thailand not in EU but to be tax free do i need to pay interest into an offshore current account and draw from there or can i pay into my UK Nationwide account. Again i will be drawing the money via ATM in LOS.

3) If i go offshore do i have to oppen an account with my Thai address or can i use my UK address and still be non resident in UK. I think i would struggle to provide proof of address in LOS as i am renting in serviced appartments so no bills ect to provide proof of recidence.

Is there is anyone from UK with experience of this with any advice????

Edited by kevkev1888
Posted

You can be non resident UK with a UK address if you have spent the qualifying period outside UK but if you use a UK addresss for an offshore account then according to the EUSD you will have 30% witholding tax deducted from your interest unless you allow the bank to declare your interest payments to the UK tax authorities.

You can pay offshore interest into an onshore account if you want.

Get a letter from the Brit embassy certifying your address in Thailand and that will be sufficient for the bank.

You shouldn't be liable to tax on your savings income from an onshore bank account if you've filled in the form and spent the qualifying non resident period outside UK.

Posted

Hi all

Hope someone out there can help me get my head round all this!

Some background

I have been in LOS for nearly a year now, renting my house in UK. I have just accepted an offer to sell house and am trying to work out what to do with the cash 170K.

I plan to stay in LOS for the foreseeable future and want to recive a monthly income from the interest.(tax free if possible!) This will be my only income allthough i plan on setting up a small bussiness in LOS for my Thai GF seperate funds available for this.

I am currently banking with Nationwide using my UK address that I am selling.

I do have another address i can use for corespondance in UK, my parents.

I understand i qualify for non-resident status is i plan to be outside UK for 330 days per tax year.

Have looked at both onshore and offshore accounts and interest rates seem to be much the same 6.5-6.6% fixed for 1 year paid monthly.

My questions are

1) Onshore I fill out form R85 interest is paid gross use my parents UK address. Interest paid monthly to my Nationwide account I will be drawing from ATM as i do now. This looks the most simple to set up but will I still be liable for Tax on savings income?

2) offshore looks a bit more complicated i think i can still self cert tax exempt as Thailand not in EU but to be tax free do i need to pay interest into an offshore current account and draw from there or can i pay into my UK Nationwide account. Again i will be drawing the money via ATM in LOS.

3) If i go offshore do i have to oppen an account with my Thai address or can i use my UK address and still be non resident in UK. I think i would struggle to provide proof of address in LOS as i am renting in serviced appartments so no bills ect to provide proof of recidence.

Is there is anyone from UK with experience of this with any advice????

Look at offshore.hsbc.com. It is very informative and very easy to get started. You can open a savings account with certified copy of passport and proof of address....either credit card statement or utility bill or something similar from your LOS address.

They want your business, they can be flexible if you phone and explain. Once you deposit over 60k UK you are a premier customer with your own personal banker to assist you. Very useful if you get in a fix whilst travelling.

Interest is paid gross without deduction of tax. You are not liable to pay tax on interest earned offshore.

You can have the interest credited monthly to your nationwide account, which is what you want.

Nationwideinternational.com also have similar accounts available. If you are in the UK, you can open an International account at a local Nationwide branch in person which makes proof of identity etc much easier. They keep application packs and forward all the paperwork for you to the offshore offices.

They actually insist that monthly interest is paid out to another account! Which is exactly what you want. You can of course transfer it back immediately if you wish.

Both banks offer time deposit accounts and deferred interest payment and other options. Nationwide bank with and use HSBC so it might be better to go direct to HSBC for a more international service.

Offshore.hsbc also offers accounts in other currencies ie euro, dollar, oz dollar,swiss franc etc. HSBC has branches worldwide.

Both offer 24/7 online access. If you have a LOS bank account you can transfer to LOS at the click of the mouse.

You could also open a current HSBC as well as a savings account and use their ATM cards.

Meeting the money laundering requirements is a hassle, but once done, you are free of the UK tax man as long as you live abroad (as defined by their complicated criteria for non residency).

Posted
Hi all

Hope someone out there can help me get my head round all this!

Some background

I have been in LOS for nearly a year now, renting my house in UK. I have just accepted an offer to sell house and am trying to work out what to do with the cash 170K.

I plan to stay in LOS for the foreseeable future and want to recive a monthly income from the interest.(tax free if possible!) This will be my only income allthough i plan on setting up a small bussiness in LOS for my Thai GF seperate funds available for this.

I am currently banking with Nationwide using my UK address that I am selling.

I do have another address i can use for corespondance in UK, my parents.

I understand i qualify for non-resident status is i plan to be outside UK for 330 days per tax year.

Have looked at both onshore and offshore accounts and interest rates seem to be much the same 6.5-6.6% fixed for 1 year paid monthly.

My questions are

1) Onshore I fill out form R85 interest is paid gross use my parents UK address. Interest paid monthly to my Nationwide account I will be drawing from ATM as i do now. This looks the most simple to set up but will I still be liable for Tax on savings income?

2) offshore looks a bit more complicated i think i can still self cert tax exempt as Thailand not in EU but to be tax free do i need to pay interest into an offshore current account and draw from there or can i pay into my UK Nationwide account. Again i will be drawing the money via ATM in LOS.

3) If i go offshore do i have to oppen an account with my Thai address or can i use my UK address and still be non resident in UK. I think i would struggle to provide proof of address in LOS as i am renting in serviced appartments so no bills ect to provide proof of recidence.

Is there is anyone from UK with experience of this with any advice????

I am a US citizen living in thailand and kind of in the same boat as you...where can you get 6.5% interest?

Posted

[

I am a US citizen living in thailand and kind of in the same boat as you...where can you get 6.5% interest?

The following are for UK pounds at todays rates. USA Dollar much lower rates available. High rates for Oz Dollar and NZ dollar also available.

You would run an exchange rate risk and transaction costs if you move into UK pounds. Its a gamble!!

Easy Access ProviderAccountAERNotice TermMin Investment ICICI BANK

HiSAVE Savings Account6.16%Instant£1applydetails2.gifBRADFORD & BINGLEY

Internet Saver

6.00%Instant£1applydetails2.gifICESAVE

Easy Access Account6.05%Instant£250applydetails2.gifPRINCIPALITY BS

e-SAVER5.75%Instant£1applydetails2.gifSAINSBURYS BANK

internet saver5.50%Instant£1applydetails2.gifEasy Access with BonusProviderAccountAERNotice TermMinimum Investment ABBEY

Instant Access Saver6.50%Instant£1000applydetails2.gifEGG BANKING PLC

Egg Savings Account (Internet)6.05%Instant£1applydetails2.gifCAPITAL ONE SAVINGS

Bonus Saver Account

6.05%Instant£500applydetails2.gifING DIRECT

Savings Account6.00%Instant£1applydetails2.gif

Posted
I am a US citizen living in thailand and kind of in the same boat as you...where can you get 6.5% interest?

6.5% is on British Pounds.

Max I've found on the US$ is 4.40% at www.alil.co.im

Posted (edited)
I am currently banking with Nationwide using my UK address that I am selling.

I do have another address i can use for corespondance in UK, my parents.

I understand i qualify for non-resident status is i plan to be outside UK for 330 days per tax year.

1) Onshore I fill out form R85 interest is paid gross use my parents UK address. Interest paid monthly to my Nationwide account I will be drawing from ATM as i do now. This looks the most simple to set up but will I still be liable for Tax on savings income?

Good luck with this. I will be facing the same issues very soon.

One thing you may need to bear in mind. Is your Nationwide a/c the Flex account? If so, this is supposedly only available to UK residents. If you are filling out an R85 to claim you are non-resident for tax purposes this may cause problems with keeping the Flex account.

Just a thought.

Good luck.

Edited by astromash
Posted
I am currently banking with Nationwide using my UK address that I am selling.

I do have another address i can use for corespondance in UK, my parents.

I understand i qualify for non-resident status is i plan to be outside UK for 330 days per tax year.

1) Onshore I fill out form R85 interest is paid gross use my parents UK address. Interest paid monthly to my Nationwide account I will be drawing from ATM as i do now. This looks the most simple to set up but will I still be liable for Tax on savings income?

Good luck with this. I will be facing the same issues very soon.

One thing you may need to bear in mind. Is your Nationwide a/c the Flex account? If so, this is supposedly only available to UK residents. If you are filling out an R85 to claim you are non-resident for tax purposes this may cause problems with keeping the Flex account.

Just a thought.

Good luck.

Hi

I R85 is only a self certified form to say i qualify for interest without tax, not to say i am non resident.

Have done a bit more reaserch on this now with thanks to information provided in this thread hsbc website.

As i understand it now, i need to complete form p85 to show non residence, then you are not liable for tax on savings offshore.

Will then open offshore account for my savings probably Bank of scotland international currently 6.56%

Pay interest monthly into Nationwide and continue to draw with no charges from ATM, change my address with Nationwide to my parents address and fill out R85 to get interest paid gross from them too.

The only taxable income then would be the small amount i am earning each month from Nationwide account and this should be well below my tax free alowance.

So no Tax to pay!!!! :o

Posted (edited)
Will then open offshore account for my savings probably Bank of scotland international currently 6.56%

Reason for edit. Changed my mind about pointless rant.

Best of luck with BOS.

Edited by abcd22
Posted

Can someone who knows better than me, point out implications and the difference re a declaration of non residency in the UK for TAX purposes, as opposed to being "NON-RESIDENT" in the UK?

Posted

As far as I am aware noon resident for tax purposes is different. I cannot find any advantages to being non resident completely but am interested if anyone knows about this.

I have just sent off R85 to reclaim tax so fingers crossed.

I talked at lenght to Nationwide before I left and they advised to have an address in UK for health etc purposes and they use that for correspondence but they will also use address here if that is what you want

Posted
Can someone who knows better than me, point out implications and the difference re a declaration of non residency in the UK for TAX purposes, as opposed to being "NON-RESIDENT" in the UK?

Just a quicker way of saying the same thing.

Unless by NON-RESIDENT you mean non domiciled, in which case you can be resident in UK and not pay tax.

Posted
Can someone who knows better than me, point out implications and the difference re a declaration of non residency in the UK for TAX purposes, as opposed to being "NON-RESIDENT" in the UK?

Just a quicker way of saying the same thing.

Unless by NON-RESIDENT you mean non domiciled, in which case you can be resident in UK and not pay tax.

"Non-Domiciled" was the term I was fighting for, thank you PattayaParent.

I guess that means you can be "tax-resident" in the UK but "domiciled" somewhere else in the world. Out of curiosity, do you have to be present in the UK a minimum of 91 days in a tax year to be tax-resident there?

Posted

It used to be dependent on how long you'd been out of the country already (and I think it still does).

In your first year you were only allowed 60 days and subsequent years 90 days (subject to the 1/6th rule).

Note that now they've changed the basis of calculation for days IN UK to include the days you arrived and left so each trip back you 'lose' 2 days.

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