Offshore vs local bank accounts

A lot of the banks in the UK offer offshore banking accounts and I was wondering what the advantages are, if any, of having an offshore account instead of the local accounts that they give.  Are there tax incentives of having one over the other?  What about ease of money transfer between your bank in the UK to one at home?

So nobody here has an offshore bank account?

Hi there,

Take a look around on the search engines for Offshore banks - theres a few providers and I think the last time I looked to see what they were about, seems you have to pay in like an amount far beyond the average salary and quite a bit beyond! I'm just typing from memory here, but I think it 'suits' those very well off types who do this for taxation and domicile reasons as well as business reasons. For the most part, for vast majority of us and including immigrants, it doesn't really work out an effective solution. Things may have changed though..

I just quickly searched and found a WIKI article

http://en.wikipedia.org/wiki/Offshore_bank

Cheers, DtM! West London & Slough UK!

I have an offshore Natwest account.  I think it's fine.  Although it can be a pain because you can't walk in to a regular Natwest branch on the mainland to get things done.

Geeta of course has to have one with the amount of international trade she does - flying here, there, buying this that and the other!!...   ahh the life of a jet setter !



By the way G, I'm still looking around the Windy City ! hope you and yer better half are good!

Cheers, DtM! West London & Slough UK!

I currently live in the United States and I have offshore accounts in the Isle of Man.  If you are not resident in the UK, you have little choice; UK banks will generally not let you open an account.  So, offshore banks are the practicable way to maintain a pound sterling account for your British funds.  For people who live in the UK, I don't think there are any advantages to having an offshore account.  I believe that, if you live anywhere in the EU, the offshore bank has to withhold income tax from your bank account interest.  In my case, living in the US, there is no tax withheld but I have to declare the interest on my IRS form 1040, and pay income tax on it.

For people who live in the UK, I don't think there are any advantages to having an offshore account. I believe that, if you live anywhere in the EU, the offshore bank has to withhold income tax from your bank account interest. 

There are advantages but it does't have anything to do with the interest.  And people who live in the UK can still have interest free offshore accounts.

Anyway, the advantages have to do with getting certain tax relief, which is only available to you if you are intending to live in the UK for less than 3 years.  Google "overseas workday relief" or "NOR relief" with a sprinking of "remittance basis."

Anyway, the advantages have to do with getting certain tax relief, which is only available to you if you are intending to live in the UK for less than 3 years.  Google "overseas workday relief" or "NOR relief" with a sprinking of "remittance basis."

That's good to know since I am only allowed to live in the UK for 2 years max on their youth mobility program.