Petem95

Whats the deal with off-shore savings accounts (Isle of Man etc) - do you pay tax on the interest?

Allience and Leicester are offering 5.45% AER on one, 120days notice to close and 10k minimum balance. Not a great rate when you can get the same rate with Icesave or ICICI with instant access and no minimum - but if you dont pay tax on the interest then it becomes a good deal....

Anyone know? Or do you pay tax when you transfer the money back to a UK account or something?

22BUK

You have a choice.

If you want the full interest rate, you have to agree to the bank disclosing the interest to the Inland Revenue (if you are a UK resident).

Alternatively, they will pay you a lower interest rate, but not report it...

Petem95

Any idea how much lower the lower rate would be?

22BUK

I think it's around half the usual rate

Maz

iTrader: (34)

The Inland Revenue will soon have access to information about off shore accounts based in the Isle of Man and The Channel Islands.

merlin

If you are non-domicile (father born in another country is one way to be non-domicile) and you don't bring the interest earned to the UK then you don't need to pay tax.

Freak

I was also told that if the funds or interest are never transferred or used in the uk then you do not have to pay tax....but don't quote me on that! Probably horse****!
I only have $500 in an offshore

Deep Singh

Is that true? My father was born elsewhere, as was I but I have a UK passport. Can I really have non-domicile status and earn tax free in an offshore account?