Salary into an offshore account for Resident & ord Resident

[simpsonite]

Hi all,

My client is a Commercial diver, he is resident & ordinarily UK resident.

He has been advised by his bank that if he deposits his earnings into an offshore account such as the isle of man & he doesnt bring the money back to the Uk then he can escape UK tax?!

Is this still the case or have the UK authorities since closed these types of tax loop holes?

thoughts much appreciated,

Simpsonite

[section 44]

What loop hole?

[simpsonite]

i mean that my client will not be able to shelter his earnings from the Uk tax authorities by depositing it into an offshore account.

His seems to think that he could escape UK tax by doing this.

He is resident & ordinarily resident in the UK

[thehiker99]

Simpsonite

It is not clear at all if you are speaking about Income Tax, tax on interest, or some other tax.

As section44, said, what Loop Hole?

if you're client is resident, and ordinarily resident in the UK, then all his worldwide income is due to UK income tax, and any interest he may gain by having money in an offshore account, is similary taxed by the UK. The fact that the offshore banks might not take the tax off at source, is immaterial. In fact I think if he gives them a UK address, the tax will be taken off at source. If not the IOM and CI banks will cerrtainly inform HMRC.

The Hiker.

[thehiker99]

Simpsonite.

Sorry, I've re-read your posting, and realise you ARE talking about income tax. (too much going on the background here, can't concentrate).

I dont believe, that liability to income tax has anything to do with bringing it to, or not bringing it to the UK. If your client is Res, and normally resident in the UK, his worldwide income is subjct to UK tax, irrespective of where he keeps it, or spends it.

Regards

The Hiker 99

[simpsonite]

thanks for that Hiker, just as i thought.
It was the phrase "off shore" that got me a little jumpy!ha

simpsonite