Offshore Bank Account

Banking outside the UK banking system gives you the benefits of being in a low-tax regime, but the pitfalls of having no legal protections.

An offshore bank account can be the most tax efficient way to handle large amounts of money- many serious investors use them for both tax avoidance and privacy. However offshore banking is expensive and possibly even a liability for the novice, and you should seek advice from a specialist before opening an offshore bank account; particularly if you are not an expatriate.

In a nutshell there are actually two ways to use offshore banking facilities: open an offshore bank account, or start an offshore company which exists to handle your assets.

There are more reasons to go offshore than you might think. The most obvious is for tax-efficient investment purposes. An offshore bank account or private company will not only not be liable to income tax, but also consider capital gains tax, stamp duties on property etc. An offshore bank account is also not subject to local litigation; so your assets are protected against all sorts of creditors. If you are engaging in inheritance planning, you’ll also find that the contents of an offshore bank account are not liable to inheritance tax either.

So why doesn’t everyone have an offshore bank account? Well, they come at a fee, and you need significant knowledge to navigate the process efficiently and legally. There are plenty of offshore consultancies who will help you, but additionally you must realise that just as your investments are protected from legal assault, you also receive no legal protection if you become the victim of a scam or bogus investment opportunity. Speak to a private bank or offshore banking specialist before doing anything.