Offshore Banking Tax
Find out more about offshore banking and tax...Offshore banking tax is different because interest is payable gross, however, you will have to declare the interest as income, meaning you could still be liable for UK taxes.
It is important to understand the relationship between offshore banking and tax before opening an account. Compare leading international accounts in the table below:
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* GROSS RATE – The contractual rate of interest payable before deduction of income tax at the rate specified by law.
** AER RATE – AER stands for Annual Equivalent Rate and is the notional rate which illustrates the gross rate as if it was paid and compounded once each year. As every advertisement for a savings product will contain an AER you can compare more easily what return you can expect from your savings over time.
Offshore banking doesn't necessarily mean you won't have to pay tax on the returns you make – you are still responsible for paying tax in your home country, but offshore banking can give you more freedom to manage your own tax affairs and help to reduce the amount of tax you pay.
Other benefits of offshore banking include:
- Accounts available in multiple currencies
- Easy access and transfers
- Competitive interest rates