off shore tax declaration


D

Dan W

I propose opening a Co-operative Bank (Guernsey) 'Save Direct
Worldwide' account for the purpose of transferring substantial
proceeds from the sale of my main residence house in the UK (I do not
own any other properties). The funds will be in the account for about
6 months before i withdraw them to buy another house.

My questions are, will i need to declare the interest to the Inland
Revenue in my tax return and will i need to declare the funds
(including interest) when i bring them back into the UK in 6 months
time? I am British and work full-time in the UK.

Many thanks.
 
P

Peter Crosland

My questions are, will i need to declare the interest to the Inland
Revenue in my tax return
Yes.

and will i need to declare the funds
(including interest) when i bring them back into the UK in 6 months
time? I am British and work full-time in the UK.
You will need to convince the recipient bank as to the legitimacy of the
funds.

Given that you will be repatriating the funds there seems little advantage
in the transaction anyway other than deferring the payment of some tax.
 
D

Doug Ramage

Dan W said:
I propose opening a Co-operative Bank (Guernsey) 'Save Direct
Worldwide' account for the purpose of transferring substantial
proceeds from the sale of my main residence house in the UK (I do not
own any other properties). The funds will be in the account for about
6 months before i withdraw them to buy another house.

My questions are, will i need to declare the interest to the Inland
Revenue in my tax return and will i need to declare the funds
(including interest) when i bring them back into the UK in 6 months
time? I am British and work full-time in the UK.

Many thanks.
Yes, the interest is taxable in the UK, normally by reference to the date(s)
of payment. I assume it will be paid gross?

The opening of the account does not need to be disclosed to the IR.
 
D

dp

My questions are, will i need to declare the interest to the Inland
Unless you want trouble. The Inland Revenue receives details of all
substantial transactions through UK banks. They will certainly scrutinise
anything substantial that also passes through a CI account.
 
D

dp

dp said:
Unless you want trouble. The Inland Revenue receives details of all
substantial transactions through UK banks. They will certainly scrutinise
anything substantial that also passes through a CI account.
Oops, I meant British banks not UK banks
 
D

Doug Ramage

Dan W said:
I propose opening a Co-operative Bank (Guernsey) 'Save Direct
Worldwide' account for the purpose of transferring substantial
proceeds from the sale of my main residence house in the UK (I do not
own any other properties). The funds will be in the account for about
6 months before i withdraw them to buy another house.

My questions are, will i need to declare the interest to the Inland
Revenue in my tax return and will i need to declare the funds
(including interest) when i bring them back into the UK in 6 months
time? I am British and work full-time in the UK.

Many thanks.
Yes, the interest is taxable in the UK, normally by reference to the date(s)
of payment. I assume it will be paid gross?

The opening of the account does not need to be disclosed to the IR.
 
J

john boyle

Doug Ramage said:
Yes, the interest is taxable in the UK, normally by reference to the date(s)
of payment. I assume it will be paid gross?

The opening of the account does not need to be disclosed to the IR.
From July next year (a date which may slip) a 'retention' tax at 15%,
rising to 35% in due course, will be deducted from CI & IOM accounts
held by EU residents, 75% of which will be sent to the Revenue of the
country of residence, although the account holder can opt instead for
the deposit taker to advise the IR of the gross amount of interest paid.
The OP's dosh should be out of the account by then of course.
 
C

Chris Blunt

From July next year (a date which may slip) a 'retention' tax at 15%,
rising to 35% in due course, will be deducted from CI & IOM accounts
held by EU residents, 75% of which will be sent to the Revenue of the
country of residence, although the account holder can opt instead for
the deposit taker to advise the IR of the gross amount of interest paid.
The OP's dosh should be out of the account by then of course.
Any idea how they propose to determine which customers are "EU
residents"? Will it be based on the nationality of the account holder,
or simply on the address that they have on record? If, as I suspect,
they base it on the latter, there seems to be a huge loophole there
just waiting for everyone to jump through.

Chris
 
K

Kevingr

Chris Blunt said:
On Sat, 31 Jul 2004 14:03:47 +0100, john boyle [cut]

Any idea how they propose to determine which customers are "EU
residents"? Will it be based on the nationality of the account holder,
or simply on the address that they have on record? If, as I suspect,
they base it on the latter, there seems to be a huge loophole there
just waiting for everyone to jump through.

Chris
ISTR reading somewhere that it may be by tax documents. So if you
claim to be UK resident, you would be asked to produce an appropriate
certificate from the Inland Revenue.

K
 
C

Chris Blunt

Chris Blunt said:
On Sat, 31 Jul 2004 14:03:47 +0100, john boyle [cut]

Any idea how they propose to determine which customers are "EU
residents"? Will it be based on the nationality of the account holder,
or simply on the address that they have on record? If, as I suspect,
they base it on the latter, there seems to be a huge loophole there
just waiting for everyone to jump through.

Chris
ISTR reading somewhere that it may be by tax documents. So if you
claim to be UK resident, you would be asked to produce an appropriate
certificate from the Inland Revenue.
In that case I can see major problems in getting such documentation
from the tax authorities in countries that don't issue such
certification.

Chris
 
J

john boyle

Chris Blunt said:
Any idea how they propose to determine which customers are "EU
residents"? Will it be based on the nationality of the account holder,
or simply on the address that they have on record? If, as I suspect,
they base it on the latter, there seems to be a huge loophole there
just waiting for everyone to jump through.
Their 'Know your customer' rules for Money Laundering are now more
strict than here and a retrospective exercise has been conducted.

It isnt nationality, its residence.
 
J

john boyle

Chris Blunt said:
In that case I can see major problems in getting such documentation
from the tax authorities in countries that don't issue such
certification.
Like where? The EU Savings Tax Directive is pan European (and a bit
beyond) and is being adopted throughout Europe, albeit with some local
variations and all have signed up to it.
 
C

Chris Blunt

Like where? The EU Savings Tax Directive is pan European (and a bit
beyond) and is being adopted throughout Europe, albeit with some local
variations and all have signed up to it.
I was thinking about developing countries such as where I live in the
Philippines. The tax office here is absolute chaos and its difficult
enough to get even straightforward regular transactions carried out.
I'm quite certain that if I were to ask for some obscure tax
certificate which they'd never heard of to show my overseas bank I'd
get nothing but blank looks. I'm sure there are dozens of countries
like that.

If, on the other hand, its was simply a question of satisfying the
offshore bank of my residence status, then that would make things a
lot easier.

Chris
 
J

john boyle

Chris Blunt said:
I was thinking about developing countries such as where I live in the
Philippines. The tax office here is absolute chaos and its difficult
enough to get even straightforward regular transactions carried out.
I'm quite certain that if I were to ask for some obscure tax
certificate which they'd never heard of to show my overseas bank I'd
get nothing but blank looks. I'm sure there are dozens of countries
like that.

If, on the other hand, its was simply a question of satisfying the
offshore bank of my residence status, then that would make things a
lot easier.
It is the latter.
 

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