offshore accounts

[matt_r_baker]

what is an offshore account?

[crete]

a bank by the seaside

[matt_r_baker]

seriously

[Miss Zippy]

1.1.1 These are accounts that are typically run in the Channel Islands and Isle of Man. Their main advantage to taxpayers is that they pay interest gross, unlike in the UK where tax is automatically deducted. Any interest received from an offshore account must be declared by a UK individual and tax must be paid on it (you cannot avoid paying tax on interest earned in an offshore account as some people erroneously believe). However, the advantage with offshore accounts is that as interest is paid gross, it will be some six to nine months from receiving the interest that you actually have to pay over the tax to HMRC. If a high net individual has a few million held offshore, he is going to be liable to pay tens of thousands of pounds in tax and the longer he can defer paying this to HMRC the better, as it can be re-invested in the meantime. Also, offshore accounts always used to offer much higher interest rates as compared to most UK banks and buildings societies, but this is no longer the case. Finally, offshore accounts are multi-currency so you can deposit money in any currency and similarly draw on your account in any country, which is an advantage for business travellers.

[oldhenry]

Note that recently Barclays lost a court action by HMCE to obtain details of those who are resident in UK but have offshore accounts. The HMCE are now working through the lists!
no doubt they will then turn to the other banks etc.
This was because(incredibly) some Child Credit payments, made by HMCE, were directed by payees to the offshore accounts!
So if you open one , just be aware they are within the CofE sights!- what isn't?