Overseas workers should use off shore banks as the building block upon which to base their financial plans.
The ABC rule of contracting is that ‘if you are a national of country A working in country B then you must bank in Country C.’ This confers security, stability and tax advantages upon the individual.
So why bank Off Shore?
1. The security and confidentiality which premier offshore jurisdictions offer.
The ABC rule of contracting is that ‘if you are a national of country A working in country B then you must bank in Country C.’ This confers security, stability and tax advantages upon the individual.
So why bank Off Shore?
1. The security and confidentiality which premier offshore jurisdictions offer.
2. There are no exchange control restrictions and assets can be moved freely and without formality.
3. Interest on savings is paid gross without tax deduction at source.
4. Holding assets offshore can have major tax planning advantages.
5. There maybe inheritance tax benefits depending on your country of domicile.
6. The offshore islands have worldwide communication links, facilitating ease of access.
However, the choice of banks is equally as important as moving your account offshore and it is important that you get the right account for your needs. These are the major differences between the two types: -
OFFSHORE RETAIL
Examples: Standard Bank Offshore, Nat West Offshore, Lloyds Bank Offshore, HSBC Offshore
Locations: British Channel Islands, Isle of Man
Benefits:
Examples: Standard Bank Offshore, Nat West Offshore, Lloyds Bank Offshore, HSBC Offshore
Locations: British Channel Islands, Isle of Man
Benefits:
1. Full Internet banking
2. Access to many services from mortgages to deposit accounts
Disadvantages
1. Not so personal
2. New legislation (July 2006) means that they share information with tax authorities.
OFFSHORE PRIVATE
Examples: Fairbairn Private Bank, Pictet Private Bank, Rothschilds Private Bank
Locations: British Channel Islands, Switzerland
Benefits
Examples: Fairbairn Private Bank, Pictet Private Bank, Rothschilds Private Bank
Locations: British Channel Islands, Switzerland
Benefits
1. Very high level of security and confidentiality
2. Excellent facilities for high level investment and financial mechanisms
3. Very personal level of service
Disadvantages
1. Higher minimum account levels are sometimes required.
UK citizens with undeclared offshore accounts have come under a serious threat of exposure after the UK's Special Commissioner forced Barclays Offshore to reveal the details of 9,300 offshore accounts. The objections of the bank were overruled as some of the UK-based employees held the necessary passwords to access the account details. The investigation is now to be expanded and other UK mainland linked banks will follow – including Lloyds Overseas Club, HSBC International and Nat West Offshore. It should come as no surprise that simplistic tax evasion can lead to problems. It is essential that all overseas workers speak to a professional expatriate adviser to secure their position and ensure they don’t face future problems.
If you would like more specific advice then you should talk to you own financial advisor. If you would like more information then please call or email the Operations manager.