Tired of Worrying about Where to Put your Money or What Will Happen to it When Traveling or Working Abroad?
Whether you are an experienced traveler with an internationally mobile lifestyle or just getting started on your path to freedom abroad, offshore banking is and will be an integral part of your life. In the simplest of terms, offshore banking is when one invests in banks outside of their own country, and since we are discussing the UK in particular it means investing in banks outside of the UK.
Despite government attempts to curb offshore investments in order to deter people from the tax benefits, there are still a vast array of benefits that can arise for offshore banking for UK expats, namely ones that are tax related. For example, offshore banking can give you the ability to bring your money back into your own country or your own possession at any point in which you deem fit.
As per eligibility goes, there are not as many restrictions as some UK expats and inpats may first think. In fact, every adult is eligible to have offshore accounts. What matters is your domicile and whether or not you are a citizen of the UK. If you are a UK citizen then offshore banking is one of the best investments and decisions you can make. If you are not a citizen then you can often save yourself from tax trouble until the time comes where you do not get your monetary benefits from overseas.
Main Benefits of Offshore Banking
If you invest money in a particular offshore bank you can save yourself from tax limitations until the time comes when you decide to bring your money back into the country. Tax deferral is also offered by many offshore banking accounts. Even offshore bonds help you to save taxes until you no longer draw a benefit out of them. Thus, until the time your status is that of a high tax payer you can save yourself the trouble of getting that extra cash back which in turn will save you a fortune. Although the multiplicity of choices in form of investment such as OEIC’S, offshore unit trusts, personalized and redemption policies can make the situation a bit confusing.
Many banks, insurance companies and other investment agencies are working under parent UK, US and European institutions. An IFA can be of help here. Though it is subjective to the country you go, in case you move abroad you may save yourself from tax issues if you cash in on the money you have invested abroad. Other than tax benefits, offshore banking provides you with an ample choice of funds to diversify your portfolio and you can also receive access to many expert fund managers that are not readily available in the UK.
In the case of expatriates and relocating to the UK, it depends on the UK tax regulations and is subjective to the tax treaties of the host country. Thankfully for you, expats generally avoid the problem of being taxed twice due to the treaties that are in place. This is why a number of affluent businessmen and beginner travelers are often advised to seek out the advice of financial advisors that are offered via opening an offshore banking account.
Deciding on Offshore Banking and Choosing a Provider
There are about 30 offshore centers and since their regulation, compensation and supervision schemes vary, it’s better to take advice before investing. Offshore financial centers have revised and tightened their regulations and many are on the way of doing so, such as, the Channel Islands. While you do want to look into other options and opportunities out there, the offshore bank accounts offered in Jersey of the Channel Islands is becoming regarded as one of the most beneficial options out there. In fact, HSBC currently offers a number of varied accounts and investment options that are catered to UK Expats, and people looking to make the most out of their income in a legal and legitimate fashion.
When looking into opening an offshore bank account, you should make sure that the choice of investment is at par with the risk one takes. As an expatriate one must be aware of all the funding opportunities available. Advice from the financial advisor, as mentioned earlier, is a must .
Keep in mind that offshore banking is entirely legal, which actually surprises some people. However, gaining profits from any such assets transferred into the overseas account and failing to introduce this to the local taxation bureau is illegal and considered to be money laundering. Though many try to evade taxes through offshore investments, expats are advised to use offshore banking options legally.
Thus, it is profitable to invest offshore rather than evade taxes illegally. Such accounts can easily help you do so in a manner which the law recognizes. You can keep yourself safe, maximize investments and ensure your money is where you need it to be, when you need it to be, no matter where you are in the world.
If you are looking for more information in terms of the tax benefits of an offshore bank account or what services you are eligible for then you can take the next step and look into the services HSBC is offering.