Offshore bank

Anyone?

All free mate - I can recommend Barclays International, though being a staff member my opinion is biased!

Marcus

I use HSBC's Offshore banking service in Jersey, and their account appears in every way as a normal mainland account would, except there is no reporting to the UK authorities.

Cheques have UK sort codes, their Switch debit card works as a UK card, and standing orders and direct debits all work just fine.

I've never paid any charges for operating the account.

Chris

In message , Chris Blunt writes

At the moment!

So why doesn't everyone use offshore accounts (in the uk) then?

Are you sure? I thought they were now complying with money-laundering rules.

Because there's no point for most people. The only legal advantage is that interest is paid gross, and that's offset by usually getting a lower rate to start with and the fact that you have the hassle of declaring it each year. Also it probably increases the chance that the IR will audit you.

You'd have to put that question to someone who doesn't have one. If you're UK resident you're supposed to declare any interest earned offshore, so there wouldn't be much benefit anyway.

Chris

Yes, but money-laundering is one thing, reporting interest income details to the UK tax authorities is something quite different.

Chris

In message , Chris Blunt writes

Yes. They are fulfilling slightly stricter money laundering rules than we have in UK, but they will either be deducting withholding tax, or reporting details of credit interest to the UK IR in the reasonably near future.

I know that's what a lot of governments would like them to do, but I didn't think they had agreed to go that far. Where did you hear this from?

How would they select which customers they would report to the UK tax authorities on? Would this be based on their nationality or would it apply to those with known UK addresses?

Chris

In message , Chris Blunt writes

The Isle of Man Treasury.

Those whose address is in the UK.

As above.

This article in today's Observer contains further information, but should be taken with a pinch of salt given the hopeless inaccuracy of the "Money" sections of even the quality British newspapers.

In message , Kevingr writes

In message , john boyle writes

On reading it again it gots the 25 - 75% retention wrong. The country in which the witholding tax is collected keeps 25% of it, but the rest goes to the country of residence of the depositor.

So what happens if e,.g, the depositor pays 25% tax in the UK, has an account somewhere "offshore" - will he be able to reclaim the excess

In message , John-Smith writes

Dont know yet for sure, but I reckon not. If the account was in the Isle of Man then case the depositor should elect to have the IOM deposit taker disclose the credit interest to the UK IR and not suffer witholding tax (which is anonymous). AIUI, this option is not available in Switzerland.