Zurich Offshore - 6.05%

pauldb_2

Offshore savings seem to get knocked here as they've lost their tax advantages, but this looks like the best rate going at the moment. Fixed for 1 year though, no withdrawals.

http://www.zurich.com/zurichbankinternational/ProductsServices/Products/Fixed+Rate+Bonds.htm

Could someone just confirm: you get paid gross but you have to declare it and any interest paid out Jan/Feb 2008 would leave a tax bill due Jan 2009. They talk about disclosure / retention tax, but the best thing to do is disclose the income and avoid the hassle of the retention tax, right? Does this disclosure bring forward the due date for the tax?

Cook_County

You are correct on the deadline for payment of UK tax, you also benefit therefore by the tax payment deferral so you can earn interest on the deferred tax until Jan 2009.

I see no reason not to agree to disclosure unless one is non-UK domiciled.

You should of course check out investor protection schemes in your chosen jurisdiction just in case the bank goes bust.

Chrismaths

I see no reason not to agree to disclosure unless one is non-UK domiciled.

Surely if you're non-dom then disclosure isn't a problem either, as you are not liable to tax?

Cook_County

If the account is in the Channel Islands or Isle of Man then disclosure is not required or recommended because the governments in those jurisdictions take the view that non-UK domiciliaries are outside the scope of the EU Savings Tax Directive (EUSTD). HMRC in the UK do not agree, but it seems fruitless to agree to exchange information when these territories take the view this is not necessary.

All banks in these jurisdictions have special procedures for non-UK domiciliaries in relation to the EUSTD.

Chrismaths

Twice in a week. Damn. I'll pick you up on something one day, see if I don't!

I might call that one a draw though, because if it's not IoM or Channel Islands, then disclosure would still be the best option - and the jurisdiction was not defined. I need comfort.