Offshore Bank Account

[maxcherry]

I am about to open an offshore bank account and I have been given the option to open it in either Jersey/Guernsey/Isle Of Man. Does anyone know which of these is best - in that - why use one island and not the others.

[The_Moog]

All identical tax free jurisdictions for your purposes.

I get 4.75% from Abbey National for 6 months notice - does anyone know any better rates available offshore in IOM or CI?

[maxcherry]

All identical tax free jurisdictions for your purposes.

I get 4.75% from Abbey National for 6 months notice - does anyone know any better rates available offshore in IOM or CI?

<{POST_SNAPBACK}>

So really there is no advantage of having my account on either of these islands apart from geographical location. Oh and as I have no intention of visiting any of these islandsit does not really matter where I open it then?

Guernsey it is then.

[sadako]

I know Jersey and the Isle of Man will be affected by the new EU tax legislation in July . I am looking at an account in Cyprus . I am waiting for more details . Apparently 5.5 % and I avoid tax from EU change . If you like , contact these guys www.turnerlittle.com , they will tell you more . Let me know how you get on , as I would like to know what info they give you in comparison with mine , before I go ahead and open .....

[sadako]

There is a fund with Zurich International in the Isle of Man . Sounds pretty good . You will need to transfer interest to a current account though from it as it doesnt have a direct visa / debit card option .

Tel. (+ 66-2) 662 2009

Fax. (+66-2) 662 0268

Email : [email protected]

Mail or contact this guy in BKK he will tell you more . I am considering this option too.

All identical tax free jurisdictions for your purposes.

I get 4.75% from Abbey National for 6 months notice - does anyone know any better rates available offshore in IOM or CI?

<{POST_SNAPBACK}>

So really there is no advantage of having my account on either of these islands apart from geographical location. Oh and as I have no intention of visiting any of these islandsit does not really matter where I open it then?

Guernsey it is then.

<{POST_SNAPBACK}>

[The_Moog]

You will not be affected by the EU Law (European Savings Directive) if you have an IOM / Channel Islands account - as long as you live in Thailand.

[LivinLOS]

Correct its for Euro residents...

Could people please quote what currency they are getting those rates in ?? I assume its GBP cause I get nothing like that on Euro's..

[Dah fahrang]

I get 4.89% on 12 month fixed deposit with Bank of Scotland International. (HBOS). The income is paid away monthly, into Halifax current account, from where I place it online, into Web Saver account at 4.90%. I receive interest gross from this Web Saver account.

Opening account with BoSI was done in Jersey, but with most paperwork and admin. phone calls from Isle of Man.

[JimsKnight]

I get 4.89% on 12 month fixed deposit with Bank of Scotland International. (HBOS). The income is paid away monthly, into Halifax current account, from where I place it online, into Web Saver account at 4.90%. I receive interest gross from this Web Saver account.

Opening account with BoSI was done in Jersey, but with most paperwork and admin. phone calls from Isle of Man.

<{POST_SNAPBACK}>

Are there any restrictions on getting an offshore account opened while Living in the UK. If so any way of getting round them.??

[The_Moog]

Are there any restrictions on getting an offshore account opened while Living in the UK.

You can open an offshore account while living in the UK.

-As a UK resident, there is a tax liability on gross interest paid, and under the new EC rules, they will now tell the Taxman that you have received this sum, so if you don't declare it you will get caught.

Could people please quote what currency they are getting those rates in ?? I assume its GBP cause I get nothing like that on Euro's..

GBP

- Euro deposit rates are negligible.

[Steve2UK]

All identical tax free jurisdictions for your purposes.

I get 4.75% from Abbey National for 6 months notice - does anyone know any better rates available offshore in IOM or CI?

<{POST_SNAPBACK}>

Nationwide International (as in the Building Society - but in IOM) have a Base Rate Tracker Account which currently pays 4.95% in the first year (guaranteed 0.2% above BoE base rate), 60 days notice - but 4 withdrawals p.a. free. Minimum first deposit is £5,000.

I'm thinking of opening one to link with my Nationwide Flexi Account (free ATM withdrawals etc). I could have the interest paid into it and also transfer capital if I need to. They also have a deferred interest scheme i.e. you can choose the tax year it gets paid in e.g. because you have varying income or are planning to live abroad - the latter applies to me as I'm planning to relocate to Thailand by the end of this year.

Probably not the only way to do it, but I like the idea of keeping the business in as few hands as possible.

http://www.nationwideinternational.com/

[mike100]

I found that an Egg UK account was best for me. With (approx ) 4.5 % tax free interest.

Looked at off shore accounts (3 years ago) but found then the interest rates were at least 1% lower.

Poss could find better accounts now, but not worth the hassle of changing them to tax free. Took a few months with no rebate when I first moved here.

Mike.

[Dah fahrang]

I get 4.89% on 12 month fixed deposit with Bank of Scotland International. (HBOS). The income is paid away monthly, into Halifax current account, from where I place it online, into Web Saver account at 4.90%. I receive interest gross from this Web Saver account.

Opening account with BoSI was done in Jersey, but with most paperwork and admin. phone calls from Isle of Man.

<{POST_SNAPBACK}>

Are there any restrictions on getting an offshore account opened while Living in the UK. If so any way of getting round them.??

<{POST_SNAPBACK}>

No, other than tax liability -whilst you are residing in the UK you must declare interest recieved on your tax return.

It's probably a whole lot easier to open such an account while you are in the UK.

Anti-money-laundering law requires you to identify yourself to the bank when opening an account. In my case, as I opened with BoSI, part of the Halifax group, I simply filled in all the forms for BoSI Jersey, took the necessary identification into my Halifax branch and had them endorse / stamp they had seen proof of my identity. Plain sailing from there-on.

Had I have left the UK before opening ths account, I would have had problems proving residential address for last three years! (They like to see utility bills as evidence of where you live).

Don't know of other banks, but suspect same. Money-laundering legislation affects all banks the same.

BTW for web-saving account, you are supposed to be a UK resident to hold the account. A UK contact address (family) sufficed in my case. I then had to declare on an IR85 form that I wished to receive interest gross - no tax taken off at source. The bank do not take off any tax when they pay my annual interest, which is on-shore. It is my responsibility to declare this interest to the Inland Revenue, should the amount earned ever exceed my basic UK tax allowance, plus that of my wife! (Joint account).

[Teach]

I received this in February from:

EXPAT FINANCIAL SERVICES Thailand.

I'm sure they won't mind me passing it on as it arrived unsolicited.

European Union Savings Tax Directive

From July 2005, new arrangements will come into force across the whole of Europe which will impact on all individuals that have interest bearing bank accounts and investments. In the late 1980's, the Organisation for Economic Co-operation (OECD) tried to tackle the issue of tax avoidance from savings and investments, but without success. As a result, EU Finance Ministers at the time, agreed on a joint action across Europe to eliminate what they deemed 'harmful tax practices' by reducing the opportunities for such tax evasion.

This resulted in the EU Savings Tax Directive which requires all EU states to exchange information on interest payments received on savings and investment income of non-resident private individuals so that they can be taxed at the appropriate rates in their home country. The majority of EU countries will adopt this method of exchange of information.

However, Luxembourg, Austria and Belgium have elected to instead deduct a withholding tax at source. Switzerland, Isle of Man and the Channel Islands will also be adopting the withholding tax option, even though they are not members of the EU. In practice, this means that for the countries adopting the exchange of information route, on an annual basis, details of interest earned from private bank accounts and investments shall be passed to the account holder's home country.

In the case of accounts/investments in the likes of Jersey and the Isle of Man, there will be no automatic exchange of information. Tax will instead be charged and deducted at source at the rate of 15%. This rate will however eventually rise to 35%. The Jersey/IOM government will retain 25% of the tax revenue and 75% is passed to the home country of the account holder.

This is a very important point as these countries, especially Switzerland, rely on client confidentiality. Any bank deposits that pay interest, as well as investment income that generates from fixed interest securities (government and corporate bonds) will be affected, if they are held in the name of an individual. Very importantly however, Trusts and life insurance based products are excluded from the directive and therefore offer a legitimate means of tax planning.

It is critical therefore that individuals review any current savings/investments strategies to ensure complete tax efficiency and confidentiality.

It is my belief that sooner than we think all governments and banks around the world will adopt a share information program preventing anyone from earning anything without respective revenue departments both home and abroad getting their share.

Big Brother is closer to home then many realise.

T.

[The_Moog]

the Channel Islands will also be adopting the withholding tax option,

IOM and Channel Islands institutions will generally not With-hold if you can show you are living outside the EC - this is important.

[Dah fahrang]

the Channel Islands will also be adopting the withholding tax option,

IOM and Channel Islands institutions will generally not With-hold if you can show you are living outside the EC - this is important.

<{POST_SNAPBACK}>

It is important, and it is correct!

I have just put the phone down from calling Bank of Scotland International.

They confirm, and reconfirm that through my Thai residential address, I am indeed completely exempt from any effects of this directive.

They will not be withholding any tax whatsoever, nor will they declare my earned interest details to the tax authorities, as I am outside EU jurisdiction.

So, that's confirmed what The Moog says!

[Noel]

the Channel Islands will also be adopting the withholding tax option,

IOM and Channel Islands institutions will generally not With-hold if you can show you are living outside the EC - this is important.

<{POST_SNAPBACK}>

It is important, and it is correct!

I have just put the phone down from calling Bank of Scotland International.

They confirm, and reconfirm that through my Thai residential address, I am indeed completely exempt from any effects of this directive.

They will not be withholding any tax whatsoever, nor will they declare my earned interest details to the tax authorities, as I am outside EU jurisdiction.

So, that's confirmed what The Moog says!

<{POST_SNAPBACK}>

This subject may well be past its 'tax-by-date' by now, but I can confirm that as far as my bank in Guernsey are concerned the fact that I have a Thai postal address with them means there is no witholding tax levied.

They even went as far as to reassure me in writing that they would never contact my home country tax authorities without advising me first.

I only asked of course to avoid any potential misunderstandings...

Essentially. their attitude seemed to be 'less hassle for us' and 'not our business'.

[kidtongue]

I received this in February from:

EXPAT FINANCIAL SERVICES Thailand.

I'm sure they won't mind me passing it on as it arrived unsolicited.

European Union Savings Tax Directive

From July 2005, new arrangements will come into force across the whole of Europe which will impact on all individuals that have interest bearing bank accounts and investments. In the late 1980's, the Organisation for Economic Co-operation (OECD) tried to tackle the issue of tax avoidance from savings and investments, but without success. As a result, EU Finance Ministers at the time, agreed on a joint action across Europe to eliminate what they deemed 'harmful tax practices' by reducing the opportunities for such tax evasion.

This resulted in the EU Savings Tax Directive which requires all EU states to exchange information on interest payments received on savings and investment income of non-resident private individuals so that they can be taxed at the appropriate rates in their home country. The majority of EU countries will adopt this method of exchange of information.

However, Luxembourg, Austria and Belgium have elected to instead deduct a withholding tax at source. Switzerland, Isle of Man and the Channel Islands will also be adopting the withholding tax option, even though they are not members of the EU. In practice, this means that for the countries adopting the exchange of information route, on an annual basis, details of interest earned from private bank accounts and investments shall be passed to the account holder's home country.

In the case of accounts/investments in the likes of Jersey and the Isle of Man, there will be no automatic exchange of information. Tax will instead be charged and deducted at source at the rate of 15%. This rate will however eventually rise to 35%. The Jersey/IOM government will retain 25% of the tax revenue and 75% is passed to the home country of the account holder.

This is a very important point as these countries, especially Switzerland, rely on client confidentiality. Any bank deposits that pay interest, as well as investment income that generates from fixed interest securities (government and corporate bonds) will be affected, if they are held in the name of an individual. Very importantly however, Trusts and life insurance based products are excluded from the directive and therefore offer a legitimate means of tax planning.

It is critical therefore that individuals review any current savings/investments strategies to ensure complete tax efficiency and confidentiality.

It is my belief that sooner than we think all governments and banks around the world will adopt a share information program preventing anyone from earning anything without respective revenue departments both home and abroad getting their share.

Big Brother is closer to home then many realise.

T.

<{POST_SNAPBACK}>

Indeed try this:

http://www.adcritic.com/interactive/view.php?id=5927

[jaidam]

I'm probably way out of date here but Jersey etc. has no death duties.That is when a family member dies there is no tax on their property and assets.

[naka]

All identical tax free jurisdictions for your purposes.

I get 4.75% from Abbey National for 6 months notice - does anyone know any better rates available offshore in IOM or CI?

<{POST_SNAPBACK}>

Yes - Irish Nationwide IOM

[naka]

If you fill in the form stating that you are not an EU resident for taxation purposes

you will be exempted from paying witholding tax.