Go Back  British Expats > Living & Moving Abroad > Moving back or to the UK
Reload this Page >

Offshore account in Jersey, do i pay tax on monies sent back to uk from there?

Offshore account in Jersey, do i pay tax on monies sent back to uk from there?

Old May 8th 2011, 8:44 pm
  #1  
Just Joined
Thread Starter
 
Joined: Jan 2011
Posts: 5
donaldson63 is an unknown quantity at this point
Default Offshore account in Jersey, do i pay tax on monies sent back to uk from there?

I have worked in Dubai for past 6 years. Saved up a fair bit and deposited in offshore account [as I didnt trust middle east banks!]> Now need to access since we moved back to the UK 3 weeks ago.... do we pay tax on this?
donaldson63 is offline  
Old May 8th 2011, 9:40 pm
  #2  
BE Forum Addict
 
Joined: Jan 2011
Location: Tunbridge Wells KENT
Posts: 2,914
Pistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond reputePistolpete2 has a reputation beyond repute
Default Re: Offshore account in Jersey, do i pay tax on monies sent back to uk from there?

Originally Posted by donaldson63
I have worked in Dubai for past 6 years. Saved up a fair bit and deposited in offshore account [as I didnt trust middle east banks!]> Now need to access since we moved back to the UK 3 weeks ago.... do we pay tax on this?
You need to gain an appreciation of what your status for tax purposes is.

If you are resident and ordinarily (habitually) resident in the UK you are taxable on your world income, incl income in this offshore account on an arising basis from the date that you became that and not a remittance basis, but see below.

For general consumption, the only way around this is to establish yourself as a non-dom but normally this would require you to have a very substantial foreign income in order to justify the associated costs in the long run. If you file as a non dom you lose your annual personal allowances but you are taxed on a remittance basis. You will have to show HMRC that your principle residence (domicile) remains overseas.

http://www.telegraph.co.uk/finance/p...t-of-here.html

Last edited by Pistolpete2; May 8th 2011 at 9:47 pm.
Pistolpete2 is offline  
Old May 9th 2011, 7:15 am
  #3  
Just Joined
Thread Starter
 
Joined: Jan 2011
Posts: 5
donaldson63 is an unknown quantity at this point
Default Re: Offshore account in Jersey, do i pay tax on monies sent back to uk from there?

Thanks PP. We have now left Dubai for good and have taken up residency in UK. We have bought and paid for our new house from our savings already. Do we need to declare to the taxman?
donaldson63 is offline  
Old May 9th 2011, 9:17 am
  #4  
Forum Regular
 
Joined: Nov 2009
Location: Originally from the U.K. and now back in Houston
Posts: 51
Tahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really niceTahiti_Bound is just really nice
Default Re: Offshore account in Jersey, do i pay tax on monies sent back to uk from there?

Originally Posted by donaldson63
Thanks PP. We have now left Dubai for good and have taken up residency in UK. We have bought and paid for our new house from our savings already. Do we need to declare to the taxman?
Dear Donaldson

There are perhaps two questions that you are posing:

Firstly - I think you are asking if your pay earned in Dubai (that you transferred to your offshore account) is taxable. As Mr. Pete suggested, this depends on your 'residence for tax purposes'. This can be quite simply assessed:

http://www.hmrc.gov.uk/cnr/faqs_general.htm#2nr

It seems to me that if you were out of the UK for the last six years, then (provided you did not visit the UK very often) you would be considered as non-resident for tax purposes) and your earnings (that were associated with your work in Dubai) would not be subject to tax in the UK. You might want to look at the last year though if you have moved back part way through a tax year. Of course, if you had lashings of earnings in the UK (say from rental property, trust fund, pension or other UK sourced income) then there would be tax liable on that income.

Your second question may be - do you have to pay tax on savings held in an offshore account? You don't pay tax on the savings themselves; again as Pete has perhaps suggested, you could be liable to pay tax on the interest earned now you are back in the UK.

In passing, you should have notified the tax authorities in the UK when you were leaving (via form P85 if I recall correctly):

http://search2.hmrc.gov.uk/kb5/hmrc/...0nw&formId=766

Does this answer your question?

All the best

Tahiti

PS - this information is not tax advice, and is worth precisely what you paid for it! ;o)
Tahiti_Bound is offline  
Old May 9th 2011, 2:54 pm
  #5  
Just Joined
Thread Starter
 
Joined: Jan 2011
Posts: 5
donaldson63 is an unknown quantity at this point
Default Re: Offshore account in Jersey, do i pay tax on monies sent back to uk from there?

Cheers TB, i think we are ok then.. We did notify the Tax office when we left, so hopefully ok.
donaldson63 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.