Offshore accounts

meatandtwoveg

http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/8435432/Expat-rates-how-EU-legislation-could-affect-your-offshore-account.html

However, the big change will be for anyone who opted to have retention (or withholding) tax deducted from their savings. When the EU member states brought in the ESD in 2005, the Channel Islands and Isle of Man (plus European countries not in the EU including Switzerland, Andorra and Liechtenstein) agreed to support the EU by bringing in a retention tax on savings income earned on accounts based in their banks, as long as the account holder lived in the EU.
Savers who didn’t volunteer to have their savings interest details passed to their local tax authorities were subject to this tax instead. From July 1, this option goes and all EU savers with Channel Islands or Manx bank accounts will have details of their interest passed to their local tax authorities.
As well as the amount of interest earned, the information passed on will include customers’ names, addresses and if they have one, their tax identification number (TIN) - if not, the date and place of birth will be supplied.

ba22a_2

I am currently non resident working in Asia. I have a fair amount of cash from the sale of my property in the UK. These savings are placed mainly in UK savings accounts. I've signed R85 at the banks so that my interest is paid gross, the reason for this is that in many cases as I'm overseas the banks will not allow me to maintain the accounts. Is it better to do this or place the money offshore in 'tax-free' accounts?

rockitup

ba22a wrote: »

I am currently non resident working in Asia. I have a fair amount of cash from the sale of my property in the UK. These savings are placed mainly in UK savings accounts. I've signed R85 at the banks so that my interest is paid gross, the reason for this is that in many cases as I'm overseas the banks will not allow me to maintain the accounts. Is it better to do this or place the money offshore in 'tax-free' accounts?

You filled in the wrong form there (R85) Check out the notes, it is for UK Residents only earning under the annual personal allowance.

I know where you are coming from about banks wishing to close your account as a Non-Resident so don't bother filling in the R105 form (correct one for Non-Residents to get interest paid gross)

Best way is to wait till end of each tax year and either fill in a self-assessment if you receive one, there is a line for interest gross, tax deducted and net interest. If not print off Form R43 from the HMRC website, fill that in and return to HMRC CNR. It can take a few months to get the refund but then at least you have done it correctly as far as HMRC is concerned

expatasia

rockitup wrote: »

If not print off Form R43 from the HMRC website, fill that in and return to HMRC CNR. It can take a few months to get the refund but then at least you have done it correctly as far as HMRC is concerned

Hi Rockitup

Is the latest R43 form for 2010-2011 available yet have you noticed?

ENZO12

property.advert wrote: »

OZ and the UK have some cozy relationship though. Up to you to declare it to the Oz authorities - not really sure how they'd find out about it if you didn't - but if you were in other countries, you could legally not have to pay tax on it.

So if you emigrate to say Canada or Australia. You are a permanent resident in your new country. You pay tax in your new country, you may work in your new country.

You have say £100k sitting in your Nationwide International Offshore Savings Bond Account. The account pays 3% Gross, 2.4% Net.

If in a tax year you remain a permanent resident for the whole year in your new country, can you opt to have your interest paid Gross at 3%.

So then its your decision to declare to your local authorities in your new country, the unearned income you are recieving?

rockitup

expatasia wrote: »

Hi Rockitup

Is the latest R43 form for 2010-2011 available yet have you noticed?

http://www.hmrc.gov.uk/cnr/r43-2011.pdf

Expat Asia,

This should be the link above but my Adobe Reader is out of date, so give it a try anyway.

30 minutes here to download Adobe Reader... what a sh1te internet connection :mad:

rockitup

ENZO12 wrote: »

So if you emigrate to say Canada or Australia. You are a permanent resident in your new country. You pay tax in your new country, you may work in your new country.

You have say £100k sitting in your Nationwide International Offshore Savings Bond Account. The account pays 3% Gross, 2.4% Net.

If in a tax year you remain a permanent resident for the whole year in your new country, can you opt to have your interest paid Gross at 3%.

So then its your decision to declare to your local authorities in your new country, the unearned income you are recieving?

In the country I live in there are no taxes on income or capital gains on investments or business carried out in another country so no problem. i just had to go to the local tax office here for them to stamp my P85 and sign the declaration.

If tax is due in the country you live/work in I suppose it is down to you to declare it or take the chance. If you were to do the latter are the penalties severe if you get found out?

Wouldn't be a good idea in America though, quite large penalties for not reporting foreign account holdings over $10,000 last time I read about it there.

expatasia

rockitup wrote: »

http://www.hmrc.gov.uk/cnr/r43-2011.pdf

Expat Asia,

This should be the link above but my Adobe Reader is out of date, so give it a try anyway.

30 minutes here to download Adobe Reader... what a sh1te internet connection :mad:

Yes it's the latest form, cheers. Hope you had more luck with the BWealth applications.

ENZO12

rockitup wrote: »

In the country I live in there are no taxes on income or capital gains on investments or business carried out in another country so no problem. i just had to go to the local tax office here for them to stamp my P85 and sign the declaration.

I coming, where are you, where do you live, just want a quiet life, got my cash, do i need a visa?

expatasia

How does the cost of living compare to the UK, rockitup?