Offshore Banks & Uk Taxation

[chiang mai]

More threats from HMR&C about not paying tax on offshore savings:

http://www.telegraph.co.uk/finance/newsbys...le-classes.html

Interesting this time however that they also say, "Tax information exchange agreements are being finalised with other offshore banking centres, notably Singapore, Hong Kong, Andorra and Malta".

[Trickcyclist]

advise your UK tax office that you are now/have been a non resident of for tax purposes and fill in the appropriate form declaring same..

[chiang mai]

Personally I did so back in the early 1990's but I post the article here because there are still some people who think that Singapore accounts for example are outside of the UK tax net and they are not.

[Naam]

Personally I did so back in the early 1990's but I post the article here because there are still some people who think that Singapore accounts for example are outside of the UK tax net and they are not.

they are!

[chiang mai]

Personally I did so back in the early 1990's but I post the article here because there are still some people who think that Singapore accounts for example are outside of the UK tax net and they are not.

they are!

My humble apologies for being less than precise in what I wrote, let me put this another way:

There are still some people who presume that if they deposit funds into a bank in Singapore that such deposits will never be reported to the UK tax authorities - in light of the recent moves by HMRC to extend reporting by foreign banks to include Singapore, that presumption is not necessarily valid.

But I do think you understood that!

[Soutpeel]

Personally I did so back in the early 1990's but I post the article here because there are still some people who think that Singapore accounts for example are outside of the UK tax net and they are not.

they are!

My humble apologies for being less than precise in what I wrote, let me put this another way:

There are still some people who presume that if they deposit funds into a bank in Singapore that such deposits will never be reported to the UK tax authorities - in light of the recent moves by HMRC to extend reporting by foreign banks to include Singapore, that presumption is not necessarily valid.

But I do think you understood that!

I think you are presuming too much, I suspect the agreement between HMRC and Singapore will consist of a Singapore bank providing information of a British Citizen's bank/account details if so requested to do by HMRC, not automatic reporting of all British citizens holding accounts in Singapore....

[chiang mai]

Personally I did so back in the early 1990's but I post the article here because there are still some people who think that Singapore accounts for example are outside of the UK tax net and they are not.

they are!

My humble apologies for being less than precise in what I wrote, let me put this another way:

There are still some people who presume that if they deposit funds into a bank in Singapore that such deposits will never be reported to the UK tax authorities - in light of the recent moves by HMRC to extend reporting by foreign banks to include Singapore, that presumption is not necessarily valid.

But I do think you understood that!

I think you are presuming too much, I suspect the agreement between HMRC and Singapore will consist of a Singapore bank providing information of a British Citizen's bank/account details if so requested to do by HMRC, not automatic reporting of all British citizens holding accounts in Singapore....

I'm actually not presuming anything, merely suggesting that the presumptions of some expats on this topic are no longer correct - the idea that expat bank accounts in Singapore and other places are totally off the HMRC tax radar is no longer valid, regardless of whether the system works on an individual or blanket basis.

[wordchild]

If you are bona fide non resident in the UK then the UK Govt has no legitamate interest (aside suspected crimminal activity )in any bank accounts you may have outside the UK

[fletchsmile]

If you're non-resident and have been for some time it's fine.

The problems occur if you are resident or you return to the UK and become resident again. Their rule changes according to their document hmrc6 w.e.f. April 2009 are already making it less and less desireable to even consider going back.

Compared to the days when as long as you left it outside the UK you were fine, things have come along way. The relatively new "remittance basis" isn't nice, nor is the "arising basis" should you inadvertently get caught back in it.

For me personally, it means I have to think long and hard about spending more than 91 days on average per year in UK. There was a time when I thought I might just drift back for as long as I wanted, leaving many of my assets offshore and as long as I left them offshore I was Ok from a tax perspective. Those days are gone.

[wordchild]

If you're non-resident and have been for some time it's fine.

The problems occur if you are resident or you return to the UK and become resident again. Their rule changes according to their document hmrc6 w.e.f. April 2009 are already making it less and less desireable to even consider going back.

Compared to the days when as long as you left it outside the UK you were fine, things have come along way. The relatively new "remittance basis" isn't nice, nor is the "arising basis" should you inadvertently get caught back in it.

For me personally, it means I have to think long and hard about spending more than 91 days on average per year in UK. There was a time when I thought I might just drift back for as long as I wanted, leaving many of my assets offshore and as long as I left them offshore I was Ok from a tax perspective. Those days are gone.

For sure that is the case, bit by bit the UK is getting tougher on this whole residency issue. The best advice these days, if you want to be sure of your status, have no property in the UK , no immediate family (ie wife and kids), minimum financial assets,no club memberships and dont even come close to spending 90 nights there. I would not be surprised to see the UK move, in the future, to a US type worldwide tax obligation for citizens, whether or not you are resident .

Edited November 18, 2009 by wordchild

[chiang mai]

I just downloaded hmrc6 and have started reading it, my but it does make scary reading and I agree that we seem destined to follow the US model - given that trend on so many fronts I don't see why the entire country isn't simply annexed as the next US state and another star added!

[Naam]

Personally I did so back in the early 1990's but I post the article here because there are still some people who think that Singapore accounts for example are outside of the UK tax net and they are not.

they are!

My humble apologies for being less than precise in what I wrote, let me put this another way:

There are still some people who presume that if they deposit funds into a bank in Singapore that such deposits will never be reported to the UK tax authorities - in light of the recent moves by HMRC to extend reporting by foreign banks to include Singapore, that presumption is not necessarily valid.

But I do think you understood that!

this statement sounds quite different and can't be questioned. however, to get a clearer picture one should read the lukewarm agreement which was signed by Singapore to meet minimum OECD demands. without going into details i claim that the status quo prevails and will prevail (most probably for years to come) unless a new agreement is signed.