There is a common misconception that offshore savings accounts may allow customers to avoid paying taxes altogether. While this is unfortunately not the case, it is important that customers understand the range of money saving tools that are at their disposal, including the use of offshore savings calculators.
Most UK bank accounts have their interest paid to customers on a ‘net’ basis. This means that interest is taxed before it is transferred to customer. Offshore accounts work slightly differently and instead are credited ‘gross’, meaning that tax is deducted after the interest is paid to the customer, allowing them to save more money.
By using an offshore savings account, customers can save money. Tax on these accounts may also be collected later and may be deferred, allowing customers to gather significantly more interest for a period of time before anything is collected from HMRC.
To learn more about the various offers that are available, please see our table below for comparisons on offshore savings accounts.