| Offshore banking can be somewhat of an enigma for | | | | accounts often offer higher rates than many of the |
| people who think foreign accounts are for the | | | | UK's high street banks. Finally, you may be eligible for |
| seriously rich. This article discusses the merits of | | | | offshore tax deductions based on your personal |
| offshore accounts - and find out who uses them, | | | | circumstances but this depends largely on the |
| why they use them and where. | | | | account, the country and your eligibility. |
| What is offshore banking? | | | | For more information on the benefits of banking |
| Having an account in a country other than where you | | | | offshore, see link below. |
| normally live is known as offshore banking. Various | | | | Do I have to declare savings to the Inland Revenue? |
| sectors of the population use offshore banking | | | | Unfortunately, yes. If you are a UK resident it is |
| facilities, including individuals, corporations and State | | | | unlawful for you to enjoy the benefits of an |
| departments. | | | | offshore savings account and not declare earnings to |
| Why would I have an offshore account? | | | | the good people at HM Revenue and Customs. If on |
| With the financial climate at home being a little | | | | the other hand you are an expatriate living abroad, |
| unpredictable, you may prefer to bank in a country | | | | you are not obliged to declare your savings to the |
| that has a steady economy. Or perhaps you regularly | | | | UK government. |
| travel abroad and would like to have the convenience | | | | What is a tax haven? |
| of a bank account in the country you frequently visit. | | | | First of all, not all countries with tax benefits are |
| The majority of people, however, use offshore | | | | called 'tax havens'. In reality many countries just |
| accounts to manage money in the country where | | | | offer account holders better deals on certain kinds of |
| they own a property - such as a holiday home. | | | | tax, such as inheritance tax. Whereas a 'tax haven' is |
| Having an offshore bank account can make money | | | | a country which has low to zero tax levels. |
| transfers more convenient, especially when dealing | | | | Which countries offer offshore tax benefits? |
| with a number of currencies. Or you may want to | | | | Depending on your circumstances there are many |
| reap the rewards of high interest rates - foreign | | | | countries that offer taxation incentives. |