Tax Free bank accounts
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Trying to find out, can you only have a tax-free bank account on Jersey / Guernsey / IOM etc if you live there?
Or is there another way to save tax free, non-isa and so on? I know nothing about this sort of thing so if anyone can point in the right direction...![Smile](https://www.scoobynet.com/images/smilies/smile.gif)
cheers
little'un
Or is there another way to save tax free, non-isa and so on? I know nothing about this sort of thing so if anyone can point in the right direction...
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cheers
little'un
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Or perhaps you should ask someone who knows about such things for a living.
However IMHO (and to the best of my (non-professional) knowledge) on your tax return (in the UK) you have to declare all UK income or (UK) interest. You are allowed to earn interest in other jurisdictions so compounding. But when you return the money to the UK, in this case, you are liable to be taxed on the income. The idea would have been to wait till you were in a lower tax situation (eg retired). Withholding taxes are a new complicating factor
To answer the original question: yes.
(subject to local laws and money laundering regulations etc etc etc)
Quick reply ?
However IMHO (and to the best of my (non-professional) knowledge) on your tax return (in the UK) you have to declare all UK income or (UK) interest. You are allowed to earn interest in other jurisdictions so compounding. But when you return the money to the UK, in this case, you are liable to be taxed on the income. The idea would have been to wait till you were in a lower tax situation (eg retired). Withholding taxes are a new complicating factor
To answer the original question: yes.
(subject to local laws and money laundering regulations etc etc etc)
Quick reply ?
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The only way you can legally have a tax free acc in Jersey or the other islands..
is....to be a resident there, and that aint an easy thing to do..
mind you when you only pay an island tax of about 1.3k a year it makes sense.
oh and before you think of becomming aresident, you have to have lived there for at least 12 months before you are allowed to purchase property!!
you work out how you do it
and its not such a cheap proposition
Mart
is....to be a resident there, and that aint an easy thing to do..
mind you when you only pay an island tax of about 1.3k a year it makes sense.
oh and before you think of becomming aresident, you have to have lived there for at least 12 months before you are allowed to purchase property!!
you work out how you do it
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Mart
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Originally Posted by mart360
The only way you can legally have a tax free acc in Jersey or the other islands..
is....to be a resident there, and that aint an easy thing to do..
mind you when you only pay an island tax of about 1.3k a year it makes sense.
oh and before you think of becomming aresident, you have to have lived there for at least 12 months before you are allowed to purchase property!!
you work out how you do it
and its not such a cheap proposition
Mart
is....to be a resident there, and that aint an easy thing to do..
mind you when you only pay an island tax of about 1.3k a year it makes sense.
oh and before you think of becomming aresident, you have to have lived there for at least 12 months before you are allowed to purchase property!!
you work out how you do it
![Smile](https://www.scoobynet.com/images/smilies/smile.gif)
Mart
1. You do not need to be resident in Jersey to have a bank account there. The island would not be a major international finance centre if all account holders had to be resident. The island is crowded enough as it is.
2. Not sure what this "island tax of 1.3K" is but I'd much rather pay that than my standard 20% that I currently pay on my Jersey income.
3. Property purchase laws are complex but currently you need to live in Jersey for 13 years before you can purchase property. There are various exceptions ie if you are extremely rich they will allow you in or if you bring social benefit (ie a celeb) or essentially employed or you marry a local. (unfortunately both my sisters are married so I can't help there).
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Anyone can open a Jersey account subject to stringent anti-money laundering regulations. You need to explain why you need the account and "to evade tax" is not a good answer. However, if you have a valid legitimate reason then you can open an account, either by applying direct or via your existing high street bank.
There are many legitimate reasons for having offshore accounts especially when people are working overseas and are non-resident for more than six months.
Hope this helps but ask away if you have any queries.
I have worked in offfshore finance for over 20 years with my speciality being anti-money laundering.
#6
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Originally Posted by mart360
The only way you can legally have a tax free acc in Jersey or the other islands..
there goes my morning.....now need to call all my clients and tell them they need to move to the IOM
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I had an offshore account in Jersey (or was it Guernsey?) with AbNat for about 7 years. Never set foot in the place.
Gymbal's info sounds pretty accurate from what I can remember. I was working out of UK, thus didn't need to declare it as UK income - but would have to be careful about how I got the money back into UK when I returned.
If you're living in the UK, have an offshore a/c and don't declare its interest, that's illegal. If you declare it, you'll be taxed on it. So not much point frankly.
Gymbal's info sounds pretty accurate from what I can remember. I was working out of UK, thus didn't need to declare it as UK income - but would have to be careful about how I got the money back into UK when I returned.
If you're living in the UK, have an offshore a/c and don't declare its interest, that's illegal. If you declare it, you'll be taxed on it. So not much point frankly.
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Originally Posted by Crapaud62
Sorry Mart but that is all total rubbish!
1. You do not need to be resident in Jersey to have a bank account there. The island would not be a major international finance centre if all account holders had to be resident. The island is crowded enough as it is.
2. Not sure what this "island tax of 1.3K" is but I'd much rather pay that than my standard 20% that I currently pay on my Jersey income.
3. Property purchase laws are complex but currently you need to live in Jersey for 13 years before you can purchase property. There are various exceptions ie if you are extremely rich they will allow you in or if you bring social benefit (ie a celeb) or essentially employed or you marry a local. (unfortunately both my sisters are married so I can't help there).![Big Grin](https://www.scoobynet.com/images/smilies/biggrin.gif)
Anyone can open a Jersey account subject to stringent anti-money laundering regulations. You need to explain why you need the account and "to evade tax" is not a good answer. However, if you have a valid legitimate reason then you can open an account, either by applying direct or via your existing high street bank.
There are many legitimate reasons for having offshore accounts especially when people are working overseas and are non-resident for more than six months.
Hope this helps but ask away if you have any queries.
I have worked in offfshore finance for over 20 years with my speciality being anti-money laundering.
1. You do not need to be resident in Jersey to have a bank account there. The island would not be a major international finance centre if all account holders had to be resident. The island is crowded enough as it is.
2. Not sure what this "island tax of 1.3K" is but I'd much rather pay that than my standard 20% that I currently pay on my Jersey income.
3. Property purchase laws are complex but currently you need to live in Jersey for 13 years before you can purchase property. There are various exceptions ie if you are extremely rich they will allow you in or if you bring social benefit (ie a celeb) or essentially employed or you marry a local. (unfortunately both my sisters are married so I can't help there).
![Big Grin](https://www.scoobynet.com/images/smilies/biggrin.gif)
Anyone can open a Jersey account subject to stringent anti-money laundering regulations. You need to explain why you need the account and "to evade tax" is not a good answer. However, if you have a valid legitimate reason then you can open an account, either by applying direct or via your existing high street bank.
There are many legitimate reasons for having offshore accounts especially when people are working overseas and are non-resident for more than six months.
Hope this helps but ask away if you have any queries.
I have worked in offfshore finance for over 20 years with my speciality being anti-money laundering.
oops edit
there are several islands in the group,
and i got that off one of the residents who is my sister who lives on one of them (not jersey may i add)
mart
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If you are a UK resident for tax purposes, then you are taxable in the UK on your worldwide earnings. This would include interest earned in any offshore location including the Channel Islands or IOM. If you choose not to declare such income then you are running the risk of doing a Lester (Piggott).
The only legal way to avoid UK taxation is not to be a UK tax resident.
The only legal way to avoid UK taxation is not to be a UK tax resident.
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Gymbal I think you may be wrong. If you are resident in the UK you must show on your tax return you worldwide income. When I lived in the UK i remember having to do it (although I was taxed only on my UK sourced income as I was non-domiciled) If you are UK resident and domiciled, and you have a bank outside of the UK, you are still liable to pay tax on it. (Also most of these countries have singned up to the European Savings Tax Directive, if you don't show where you are resident and paying tax - they will withold some of your interest - think this year it is 20% but rises to 40% in a couple of years)
So yeah you can have an account anywhere in the world but you are still liable to tax on it.
So yeah you can have an account anywhere in the world but you are still liable to tax on it.
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There are plenty of legal ways to hold money offshore. It needs to pay tax when it comes back on shore but will have benifited from growth on money you would otherwsie have paid as tax in the UK. It can also be usefull if you are a HRT when you place it offshore and BRT when it comes back.
Plenty of options, seek advice.
Plenty of options, seek advice.
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Originally Posted by Tiggs
There are plenty of legal ways to hold money offshore. It needs to pay tax when it comes back on shore but will have benifited from growth on money you would otherwsie have paid as tax in the UK. It can also be usefull if you are a HRT when you place it offshore and BRT when it comes back.
Plenty of options, seek advice.
Plenty of options, seek advice.
#14
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Mungo
The point about repatriation of funds can apply where the person is non resident or not ordinarily resident. If its a UK resident then it has no effect and yes your right it's a myth in that respect.
I suspect from Tiggs posts that he does know what he is talking about and he is referring to, for example, a person who goes overseas to work for say a couple of years and then returns to the UK at a later date. It is not as simple as just whether you are in the UK. Eg you could be non-domiciled but working in UK but with investments offshore. In this case, the repatriation of funds would be relevent to your tax payable. Good point about Euro Tax directive and withholding tax. Offshore locations had option of either going for withholding tax or a disclosure of information.
Much less chance these days of doing a Lester Pigot/Ken Dodd.
As said above, if someone wants complate advise then see a specialist. I don't intend to post all variances of tax law on here.
Even Mart's amended post is still nonsense. Similar laws in all of the Channel Islands and most other offshore finance centres.
The point about repatriation of funds can apply where the person is non resident or not ordinarily resident. If its a UK resident then it has no effect and yes your right it's a myth in that respect.
I suspect from Tiggs posts that he does know what he is talking about and he is referring to, for example, a person who goes overseas to work for say a couple of years and then returns to the UK at a later date. It is not as simple as just whether you are in the UK. Eg you could be non-domiciled but working in UK but with investments offshore. In this case, the repatriation of funds would be relevent to your tax payable. Good point about Euro Tax directive and withholding tax. Offshore locations had option of either going for withholding tax or a disclosure of information.
Much less chance these days of doing a Lester Pigot/Ken Dodd.
As said above, if someone wants complate advise then see a specialist. I don't intend to post all variances of tax law on here.
Even Mart's amended post is still nonsense. Similar laws in all of the Channel Islands and most other offshore finance centres.
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going back to the original post.....you mention ISAs....do you want to invest in equities or cash - because an equity ISA is pretty unexciting in terms of tax saving so if thats all you want a decent adviser will sort you our quite easily.
i have plenty of clients with large sums in equites paying minimal tax, large estates with tiny IHT liabities or drawings from investments exceeding £100k pa yet they pay basic rate tax only.........get advice, LOTS of options with a specalist. (even more options with SN but not all will be correct
)
i have plenty of clients with large sums in equites paying minimal tax, large estates with tiny IHT liabities or drawings from investments exceeding £100k pa yet they pay basic rate tax only.........get advice, LOTS of options with a specalist. (even more options with SN but not all will be correct
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Originally Posted by Crapaud62
I have worked in offfshore finance for over 20 years with my speciality being anti-money laundering.
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Originally Posted by Tiggs
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