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International savings | 23
Offshore
investments –
a simple solution
Offshore savings can prove an effective means of
ensuring solid financial returns
by John Brown
O
ffshore investments can often dence. The benefit is that this generally means individual to be aware of any restrictions made
appear to be a complicated finan- that the savings will be subject to lower taxes. by their country of residence for opening an
cial option. They are rarely associ- To benefit from saving offshore the individual account.
ated with ease or convenience and must either have residence offshore, or, for a resi- There are many benefits to be offered by off-
this may prove unappealing to dent in a high-tax area, there must be an offshore shore savings. Most accounts allow the individual
some people. Yet offshore saving structure which distances offshore gains from the to deposit money in sterling, euros or dollars and
can be a simple way to increase your financial onshore tax net. allow freedom to cash, withdraw and write
returns and reduce your tax burden. The most familiar places for offshore accounts cheques in any country. UK residents can gain
for those in the United Kingdom are probably in from the tax rules which govern offshore
What is offshore saving? the Channel Islands and the Isle of Man. Here accounts. Interest is paid gross without tax being
Offshore funds have been in existence since the you can take advantage of the flexible laws and deducted.
1960s, and so named because they were estab- financial incentives that are most appealing to You should be aware that this interest must be
lished originally in the island ‘tax havens’ of the offshore savers. Offshore saving categorically declared as income on your self assessment tax
Caribbean and the English Channel. Quite sim- does not mean that you don’t pay tax. What it return. Many people prefer to receive their inter-
ply, offshore saving means investing your money does do is provide beneficial tax advantages est gross because it permits them greater autono-
in an account that is not in your country of resi- when income is declared. The onus is on the my in managing their own tax affairs.
Zurich Bank International
There’s strength and then there’s Zurich strength
R
Licensed by the Isle of Man Financial Supervision Commission to take deposits.
www.investmentinternational.com March 2009 Investment International
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