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jrlee183
Posted
Posted
2 hours ago, hk blues said:

Nothing dodgy or sinister in my case Jack.

 

I second that.  There is nothing wrong in having an offshore account even if you were UK resident .... as long as you declare the interest you receive.   As you are non resident then there is no need to make any declaration (unless of course HMRC ask you to do a tax return in which case you would have to declare it, and then claim non residency so the tax would still be zero).

 

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hk blues
Posted
Posted
On 2/22/2018 at 12:20 PM, jrlee183 said:

I second that.  There is nothing wrong in having an offshore account even if you were UK resident .... as long as you declare the interest you receive.   As you are non resident then there is no need to make any declaration (unless of course HMRC ask you to do a tax return in which case you would have to declare it, and then claim non residency so the tax would still be zero).

 

Thank you for the confirmation.  Your explanation is exactly as I understand things.  I'm always a little unsure why a UK resident would choose to have an offshore account as the major benefit - tax-free status of the interest paid - is lost but I suppose the individual might have opened the account when they were non-resident and just kept it going when they returned to the UK.  No gain, no loss I guess.

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hk blues
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On 2/22/2018 at 9:42 AM, Jack Peterson said:

:thumbsup: I do so Hope so HK, I learnt some years ago ( very much to my loss) that Offshore Banking and Tax implications are rarely Just Simple, Hopefully YMMV :wink: 

As neither the UK nor the Philippines (for foreigners) operates a global tax system, it is relatively simple to stay within the regulations with regard to offshore banking.

A little suspicion is healthy Jack, and I appreciate your concern based on your own experience,  but sometimes things really are as simple as they sound.

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Jack Peterson
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4 minutes ago, hk blues said:

A little suspicion is healthy Jack, and I appreciate your concern based on your own experience,  but sometimes things really are as simple as they sound.

 I do hope so mate, I have 3 OFB's and got caught out by Pretending to be out of the Country while claiming something I could only do if i had been there. I was here at the time and as (Like you) was advised to sever ties with the UK and not have anything Official in my name Unfortunately I did not heed this and Unfortunately somewhere along the Way when I applied (as  you may well do)For Non resident ( For tax) the NHS turned up something.  For me "Ducking and Diving, Bobbing and Weaving" days are over. When I said Dodgy I did as I am sure you are aware was never on the banking issue But the Driving License (Which lawfully, can only be Got if you are Resident) as that (The banking) I know about but I always think when someone tells me to be  wary of Official stuff in the UK, I don't know how old you are or whether UK State Pensions will be Involved but I really do hope that you don't get your Bum bit in later days.

Anyway good luck thumbs-up-homer.png

 

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jrlee183
Posted
Posted
1 hour ago, hk blues said:

I'm always a little unsure why a UK resident would choose to have an offshore account as the major benefi

Its pretty rare nowadays and quite hard to even open an offshore account even if you are non resident.

Previously, offshore banks sometimes used to offer very attractive rates of interest (better than what you would get in the UK).  I remember ( some nationality ) Nationwide Isle of Man were offering over 7% back in 2006/2007 before the GFC.   That is the main reason why a UK resident would open one, but there was still no tax benefit.

The other reason was if you needed a Euro or Dollar account.  These are now available onshore so that benefit is also no longer relevant.

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hk blues
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On 24/02/2018 at 10:00 AM, Jack Peterson said:

 I do hope so mate, I have 3 OFB's and got caught out by Pretending to be out of the Country while claiming something I could only do if i had been there. I was here at the time and as (Like you) was advised to sever ties with the UK and not have anything Official in my name Unfortunately I did not heed this and Unfortunately somewhere along the Way when I applied (as  you may well do)For Non resident ( For tax) the NHS turned up something.  For me "Ducking and Diving, Bobbing and Weaving" days are over. When I said Dodgy I did as I am sure you are aware was never on the banking issue But the Driving License (Which lawfully, can only be Got if you are Resident) as that (The banking) I know about but I always think when someone tells me to be  wary of Official stuff in the UK, I don't know how old you are or whether UK State Pensions will be Involved but I really do hope that you don't get your Bum bit in later days.

Anyway good luck thumbs-up-homer.png

 

Thanks for the heads up Jack.

I know how sticky things can get with tax so I've always played it down the line.

I'm 53 so a bit away from State Pension, but I'm aware that when (or should I say if) I come to get it, I will need to go through some hoops to avoid tax issues. As I say, I've played it down the line so am as sure as anyone can be that i've done all I can to avoid the difficult questions - including not renewing my driving licence as a licence is, as you correctly point out, only available to UK residents. Which I guess is where I came into this discussion.

Anyway, appreciate your advice. 

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