Offshore savings accounts , any good ?...

[Tony 1234]

I was told they are not as safe as the mainland saving accounts.

Legislation is not as good/safe as the UK ?

Thanks

Tony

[Eric Mc]

I suppose it depends where abouts offshore they are.

I would expect Jersey would have a better deposit holders' guarantee regime than (say) Umbobongoland (I made that up - just in case anyone starts Googling for the tax regulations of Umbobongoland)

[GreaseOyster]

Out of interest - what are the advantages of having offshore accounts whilst being a UK domiciled tax payer? Are there any?

[Horse_Apple]

GreaseOyster said:

Out of interest - what are the advantages of having offshore accounts whilst being a UK domiciled tax payer? Are there any?

Several.

Generally higher banking charges.

Lower levels of default protection.

A slacker type of banking staff.

Generally lower rates of interest.

More likely to get a flag at the Revenue.

Makes you cooler down the local boozer

[Tony 1234]

Horse_Apple said:

GreaseOyster said:

Out of interest - what are the advantages of having offshore accounts whilst being a UK domiciled tax payer? Are there any?

Several.

Generally higher banking charges.

Lower levels of default protection.

A slacker type of banking staff.

Generally lower rates of interest.

More likely to get a flag at the Revenue.

Makes you cooler down the local boozer

I thought the interest rates were higher?

Tony

[Eric Mc]

If a UK tax resident and UK domiciled tax payer carries out all the legal requirements correctly, then there are no major TAX benefits to be obtained on interest received on overseas bank accounts (or any other overseas derived income). They will pay the normal UK taxes on the income received - with a credit given for any foreign tax already paid on this income, if any.

There MAY be some non-tax related advantages to be obtained - better interest rates, cheaper banking services etc.

Obviously, these can fluctuate and you will lose the legal protection UK account holders automatically have.

If the account is held in a foreign currency, the amounts on deposit and interest ammounts received will be subject to currency fluctuations as well - which of course, can work both ways.