money banked in I.O.M what legalities
Discussion
gibbos3 said:
Hi, as the title says rearly. What are the legalities regarding about £10k put into a bank in the I.O.M from the U.K. Is it O.K. or not. Anyone on here have any knowledge of this or advice please.
Thank you.
I think at one point it was 'invisible' to the inland revenue, but that was a long time ago. Cant see it being the case now.Thank you.
Why would you want to do it now?
The Isle of Man is NOT part of the UK.
I wouldn't see why a UK resident would have any problems banking £10,000 in an Isle of Man bank. The Revenue eould not be worried either provided:
The money was from legitimate sources
It was taxed appropriately in the UK
Any interest earned by the money on deposit in the IOM bank is properly declared to the UK tax authorities and UK tax paid on it (if appropriate).
I wouldn't see why a UK resident would have any problems banking £10,000 in an Isle of Man bank. The Revenue eould not be worried either provided:
The money was from legitimate sources
It was taxed appropriately in the UK
Any interest earned by the money on deposit in the IOM bank is properly declared to the UK tax authorities and UK tax paid on it (if appropriate).
I'm not sure if the IOM is subject to the same rules as the Channel Islands. Once upon a time you could invest there, get interest paid gross, then declare it if/when you brought it back into the UK proper.
Then Gordon Brown threatened them with some EU legislation and they knuckled under.
Then Gordon Brown threatened them with some EU legislation and they knuckled under.
Simpo Two said:
I'm not sure if the IOM is subject to the same rules as the Channel Islands. Once upon a time you could invest there, get interest paid gross, then declare it if/when you brought it back into the UK proper.
Then Gordon Brown threatened them with some EU legislation and they knuckled under.
Sorry, that is incorrect.Then Gordon Brown threatened them with some EU legislation and they knuckled under.
All UK tax residents who are also UK domiciled ((which is most of us) have ALWAYS been obliged by law to pay UK tax on interest received on all interest earned from moneys held in bank accounts ANYWHERE in the world WHETHER THE INTEREST WAS BROUGHT INTO THE UK OR NOT. This is called the "Earned Basis".
Of course, the problem for the Revenue was that they couldn't rely on UK taxpayers to obey the law and lots of this type of interest was going unreported. Two years ago, new rules were introduced which forces non UK banks to declare to the UK Revenue UK resident taxpayers who have accounts in these non-UK banks.
The Isle of Man government has signed up to this agreement and now this information is supplied regularly to HMRC.
People who are UK tax resident but NOT domiciled in the UK only have to report this foreign interest when it is eventually REMITTED into the UK (this is called the Remittance Basis).
Eric Mc said:
Simpo Two said:
I'm not sure if the IOM is subject to the same rules as the Channel Islands. Once upon a time you could invest there, get interest paid gross, then declare it if/when you brought it back into the UK proper.
Then Gordon Brown threatened them with some EU legislation and they knuckled under.
Sorry, that is incorrect.Then Gordon Brown threatened them with some EU legislation and they knuckled under.
All UK tax residents who are also UK domiciled ((which is most of us) have ALWAYS been obliged by law to pay UK tax on interest received on all interest earned from moneys held in bank accounts ANYWHERE in the world WHETHER THE INTEREST WAS BROUGHT INTO THE UK OR NOT. This is called the "Earned Basis".
Of course, the problem for the Revenue was that they couldn't rely on UK taxpayers to obey the law and lots of this type of interest was going unreported. Two years ago, new rules were introduced which forces non UK banks to declare to the UK Revenue UK resident taxpayers who have accounts in these non-UK banks.
The Isle of Man government has signed up to this agreement and now this information is supplied regularly to HMRC.
People who are UK tax resident but NOT domiciled in the UK only have to report this foreign interest when it is eventually REMITTED into the UK (this is called the Remittance Basis).
Building society in the UK then for me.Gassing Station | Business | Top of Page | What's New | My Stuff