Isle of Man Accounts

Skippy2roo

Hy
Anyone any opinions on the Alliance and Leicester account below

http://www.alliance-leicester.co.im/offshore-sterling-accounts/Offshore-Call.aspx?bhcp=1

Any advantages or should i just open a mainland account with higher interest.

Jonbvn

Unless you are non-resident for tax purposes, it is best to open an account on the mainland UK. The reasons are as follows:

1. Onshore account will be covered by the FSA.
2. As a tax payer you must pay tax on worldwide income. This includes interest on the offshore account.

missile

It is no longer a tax haven, IoM declare any income to UK inland revenue

Cook_County

1. The Isle of Man has its own investor protection scheme.
2. The Isle of Man is not a "tax haven". It is a jurisdiction that is different from the UK.
3. Indeed the interest is taxable for UK domiciliaries, the question here is whether or not the terms & condiions are good; tax & investor protection are red herrings when discussing a well-known brand name such as A & L.

caliston

Assuming you opt for the 'inform Inland Revenue' option on interest, and the interest was taxable, would that mean you'd have to have to fill in a tax return every year to declare it or would there be a simple way to pay tax on the interest?

Depends how much extra work filling in the tax return would be, I suppose.

Jonbvn

Currently if you do not declare (to HMRC) then the bank will deduct 15% withholding tax on the interest. However legally, if you are a UK tax resident, you will still be liable for the difference, as compared to UK tax (i.e. 20% or 40%). I would guess that for the time being, HMRC is not overly concerned unless you are holding millions offshore.

Be reminded that eventually, the withholding tax rate will increase to 35% in 2009 (I think).

ukdutypaid

About offshore accounts Tax and are they Safe? - Motley Fool

Sounds like a right muck about to me...............Even if you defer the tax payable...

moneylover

and if the money is there when you die your executors have to do probate for it on the Isle of Man as well as doing the normal probate in England!

Cook_County

My understanding from Isle of Man officials is that the Manx authorities accept English and Scottish probate.

moneylover

Cook_County wrote: »

My understanding from Isle of Man officials is that the Manx authorities accept English and Scottish probate.

Is this relatively recent? When my mother died a few years ago I had to do Manx probate - it was straightforward, I think at the time it cost about £80 to submit the forms to the Manx court. I already had done the probate here.