offshore accounts

cheerfulcat

andy_c wrote:

Thanks everyone. Guess I'm still gonna have to keep looking for that golden opportunity. As a higher rate tax payer with fully utilised cash ISA allowance is there anything else that you know of? I've little confidence in the stocks and shares options!

What about a SIPP? It doesn't have to be in stocks and shares ( though there is no need to be afraid of those, over the long term ). You can keep your money in cash, if you like. Also, some of the National Savings products are useful for a 40% taxpayer

http://money.msn.co.uk/investing/Insight/SpecialFeatures/MultiplyYourMoney/SIPPs/default.asp

http://www.nsandi.com/savingneeds/taxfreeinvestments.jsp

and of course the Charity Bank account mentioned elsewhere on the MSE site

http://www.charitybank.org/


Cheerfulcat

Edit: Or if you have a mortgage, change to offset?

dunstonh

The stocks and shares option doesnt need to be invested in the stockmarket. You have corporate bonds, gilts, fixed interest and cash funds available.

blinko

so what are the advantages of a off shore account then ?? other than letting the tax roll up

bert

blinko wrote:

so what are the advantages of a off shore account then ?? other than letting the tax roll up

Yes, I would like to know this!

A family friend of mine has put £20k for me in an offshore savings account. He says its best to not let the british government know how much money you have. Will I only be paying tax on this only if I actually 'bring' it into the country? What I leave it there and then move overseas to work. If I live and worked in the UK could I not gradually draw from it without incurring any tax?

cheerfulcat

Hi, Bert,

You will be liable for tax on any interest as it is credited to your account; that's why offshore banks offer "rollover" accounts. The interest in these is not credited until the end of the term; this can be useful to people who are higher rate taxpayers now, but may not be in a few years' time, or people who will not be UK resident for tax purposes when the account matures. The advantage to a basic rate taxpayer is that having interest compounding gross instead of net will give you a better return.

Cheerfulcat