UK onshore/offshore tax free savings

[wonderlust]

Speaking to the bank in question is not a good idea.

 

If you're not resident you don't have to pay tax. But if you're not resident you're not entitled to keep open a Nationwide FlexAccount. So the only solutions are either an offshore account with a debit card or keep the Nationwide FlexAccount open but don't tell them you're not resident. That way, like I said, you transfer money as and when you need it. The only tax you would have to pay would be on the tiny amount of interest you would receive for having a few hundred pounds in your account for a few days.

 

Of course you could also open an offshore account and a Thai bank account and make wire transfers as and when you need but they cost about £15 each.

[simie]

Teddy, thats changed slightly its now the 1st £35,000 100% guarenteed by the government. After that you get 90%. The exception is ironically now Northern Rock where 100% of all your deposits are guarenteed by the government.

Simie.

[simie]

Wonderlust, I also use Nationwide Flex account and very useful it is for charge free ATM use abroard. As you say the terms of the account are that you are a UK resident so I would'nt tell the Nationwide either, I'd just advise the OP to change his address to his parents house.

Simie.

[teddy]

Speaking to the bank in question is not a good idea.

 

If you're not resident you don't have to pay tax. But if you're not resident you're not entitled to keep open a Nationwide FlexAccount. So the only solutions are either an offshore account with a debit card or keep the Nationwide FlexAccount open but don't tell them you're not resident. quote]

 

I believe you are totally correct in this. However banks don't seem to be too rigid in enforcing it.

 

I simply wrote to the Abbey and told them I had relocated to Dubai. All they did was to change my address to direct all statements and correspondence to Dubai.

 

I then asked them why they were deducting tax from my interest and they sent me a form to fill in so that they could pay me gross.

 

 

Puzzling

 

[teddy]

Teddy, thats changed slightly its now the 1st £35,000 100% guarenteed by the government. After that you get 90%. The exception is ironically now Northern Rock where 100% of all your deposits are guarenteed by the government.

Simie.

 

Good news :thumbup:

 

[Mekong]

The 100% of first 35K and 90% of the balance is the UK banking law and the Isle of Man is also covered by UK banking laws where as the channel Islands are not. Teddy mentioned Kaupthing in an earlier posting, I have used them for years (since when they were Singer and Friedlander) and have been quite happy with them, curent Interest rate is 7% AER.

 

I could get more from a Channel Island account but with my Kaupthing account being based in IOM there is more securety.