Bank of Scotland International US Dollar Savings Account

Good morning/evening -

Does anyone have experience of using Bank of Scotland's international banking services? 

I have a current account with the Bank of Scotland that I originally opened when a student in the UK and which has a whopping 100 pounds in it.   I have had a good experience with the bank (though this was back before it became Halifax Bank of Scotland) and was looking into an option to keep our nest egg in US dollars, but make it more easily accessible from the UK, and because the exchange rate is just a killer right now.  We're hoping perhaps the dollar will strengthen between our move over and the time we are ready to buy a house.

HBOS has an International US Dollar Savings account - interest only applies on 31 Dec of each year - but it would be a means for us to park our nest egg while we establish a credit history in the UK while renting.

It is administered as an offshore account and I have no idea what implications this would have (particularly with respect to taxes).

Has anyone 'been there, done that' or have any financial savvy that could provide some advice?  Both hubby and I are pretty clueless at this stuff.

Hiya! Well, I technically have an offshore bank account with HBOS, but I live in the Isle of Man and the rules are a bit different for us.

Basically, whilst your funds are held in an offshore you're not liable for UK taxes on the capital and the interest. Your money can just sit there and grow. As you've probably sussed out, the headaches come when you move the funds back to the UK, to buy a house or whatever. I believe, in that case, it's only the interest you've accrued that will be taxable, but I can't verify that with personal experience. I think that you'll still declare the interest as income on your self assessment, but the taxes will be deferred until you cash out. Please double check that information, though, since my point of view is of someone already living in a tax haven who doesn't have to worry too much about the UK bit.