B@B offshore accounts

[tropicalisles]

Can non-doms bed and breakfast offshore bank accounts that have been set up as income and capital accounts? Can the proceeds of then be brought into the uk without being subject to uk income tax?

[accountant@uktaxshop]

A non-dom will pay tax on monies only when submitted to the UK.

The tax paid will depend on how the money was generated, ie will follow the same income and capital taxes rules as if the money was earned in the UK.

[Taxbar]

Dear Tropicalisles,

The answer to your question is whether a non-dom keeping separate income and captial accounts offshore, close these accounts and remit the proceeds to the UK.

The general answer is that by taking advantage of a concept known as "ceasing of souces" a non-dom can close both his capital account and the separate account where he has placed interest and then remit the money to the UK in the tax year following the yar in which the accounts were closed and the "source ceased" totally tax-free!

They are a number of provisos: the Capital account must represent pure capital, not one pregnant with any capital gain that would be taxable if remitted.

The best way forward is to have an adviser review the accounts and their history and then a plan can be implemented to remit monies without any UK taxes.

I specialise in advising non-doms and can assist with such an exercise and any other planning to bring monies to the UK tax free and make sure all the beneifts of being a non-dom are being used corectly.

Daniel M Feingold
Barrister-at-law (NP)
Strategic Tax Planning
International & UK Tax Consultants
 
Treen House 72 Park Road,
Prestwich Manchester M25 OFA
Tel: 0161 720 7244
E-mail: sedrate @easynet co.uk