From: Chris Blunt 
Newsgroups: uk.finance
Subject: Re: Guernsey, Jersey or Isle of Man
Date: Thu, 17 Jun 2004 18:01:43 +0100

On 17 Jun 2004 12:30:40 GMT, usenet@isbd.co.uk wrote:

>Chris Blunt  wrote:
>> On Thu, 17 Jun 2004 01:44:09 +0100, "dp"  wrote:
>> 
>> >> If opening an offshore current account, and if one has the choice
>> >> between the above, which one to choose? Does it matter? Are there
>> >> differences?
>> >
>> >Why do you want an offshore account? The charges are usually high and, if
>> >you live and work in the UK you will still pay UK tax. (Even if you work
>> >abroad you wont save tax).
>> 
>> I had always thought that income on interest earned in UK bank
>> accounts was tax-free if you're non-resident in the UK, but someone
>> has recently suggested otherwise. Apparently, you can offset income
>> against your personal allowance, but any income above that amount is
>> taxable. That's the main reason I maintain an offshore account. Does
>> anyone know what the actual situation is?
>> 
>Certainly while we were abroad from 1974 to 1977 and from 1980 to 1987
>interest on offshore accounts was credited gross.  However I believe
>that interest on UK accounts was also credited gross if you told the
>bank and/or filled in the right forms.

Yes, I realise that you can apply to have interest paid gross on UK
accounts, but I was wondering whether that interest becomes taxable
for non-residents as far as the Inland Revenue are concerned if it
exceeds your personal allowance.

Using an offshore account avoids that issue, but I'd be interested to
know if its really necessary if you're non-resident.

Chris