Going abroad - where to leave money

BritRael

Reaper wrote: »

How about saving the money off-shore? You will find all the usual banks have off-shore arms set up in places like the Isle of Man aimed at people such as her who are non-residents and pay the interest gross.....

This is not necessary as to get gross interest in IOM you have to fill in an R85 anyway, just as you do in any other bank/BS in the UK.

barak

BritRael wrote: »

This is not necessary as to get gross interest in IOM you have to fill in an R85 anyway, just as you do in any other bank/BS in the UK.

Lots of contradictory posts here, so here goes!

The offshore accounts that I have looked at all pay interest Gross - for example Halifax IOM say -

Interest is paid gross of tax subject to the provisions of the European Union Savings Tax Directive. (q.v.)

In brief, that means that you will receive interest Gross provided you agree to them 'exchanging information' about interest earned with your tax authority, or else they may deduct 15% eventually rising to 35% from 2011.

Jonbvn

barak wrote: »

Lots of contradictory posts here, so here goes!

The offshore accounts that I have looked at all pay interest Gross - for example Halifax IOM say -

Interest is paid gross of tax subject to the provisions of the European Union Savings Tax Directive. (q.v.)

In brief, that means that you will receive interest Gross provided you agree to them 'exchanging information' about interest earned with your tax authority, or else they may deduct 15% eventually rising to 35% from 2011.

The EU savings directive does not apply if the account holder lives outside the EU.

barak

Jonbvn wrote: »

The EU savings directive does not apply if the account holder lives outside the EU.

Absolutely, and you get Gross Interest provided the bank is satisfied that you do live outside the EU, even if you have a correspondence address within the EU.

Cook_County

BritRael wrote: »

lol - please yourself old mate. :wall:
Maybe I've been told wrong by the HMRC for the last 15 years :rolleyes:

The R85 is quite clearly drafted. If you have been falsely claiming gross interest you need to be correcting this with the banks and with HMRC.

BritRael

barak wrote: »

...The offshore accounts that I have looked at all pay interest Gross - for example Halifax IOM say -

Interest is paid gross of tax subject to the provisions of the European Union Savings Tax Directive. (q.v.)

I cannot comment on the Halifax as I do not have an account with them. However, I have had several with other offshore banks in IOM and Jersey, and all required the form.

barak wrote: »

...In brief, that means that you will receive interest Gross provided you agree to them 'exchanging information' about interest earned with your tax authority, or else they may deduct 15% eventually rising to 35% from 2011.

This is required regardless of taxable interest. It was introduced a few years ago when account holders were notified (around a year in advance) that information was going to be required to be shared with HMRC. You had two choices; either fill in an agreement, or close the account. I filled in the agreements as I had nothing to hide. However, lots of expats closed their accounts.

BritRael

Cook_County wrote: »

The R85 is quite clearly drafted. If you have been falsely claiming gross interest you need to be correcting this with the banks and with HMRC.

What do you mean by 'drafted'?

lol - what makes you think that I have been falsely claiming gross interest??