OFfshore accounts
Offshore accounts in territories such as the
Channel Islands, the Isle of Man and Gibraltar, are popular with
‘non doms’ - individuals who are registered with HMRC as
non-domiciled in the UK..
Other individuals who may use offshore
accounts include those who expect to retire abroad or who want to
benefit from the gross roll up of interest.
But unless you are registered with HMRC as
‘non domiciled’ for UK tax purposes, most UK residents are required
to pay income tax on interest arising from offshore accounts.
The tax authorities are clamping down on tax
evasion involving offshore accounts, so anyone thinking of opening
an account with this in mind, should think again.
In 2007, HMRC required five UK high street
banks to offer up account details of all their customers
with offshore deposit accounts. The tax authorities also offered a
partial amnesty for individuals with undeclared offshore income to
come forward and pay any tax owing from previous years.
If you are in doubt as to your tax status
or liability, you should seek professional tax advice.