Why Go Offshore With Your Savings and Banking?

    ST PETER PORT, Guernsey, April 30, 2010 /PRNewswire/ --
    - Offshore Savings Accounts Can Offer Valuable Tax Savings
    - Widely Available to Many Customers With Low Starting Balances
    - Interest Can Often Be Paid Without Tax

- Guernsey is a Well Regulated and Internationally Accredited Banking Environment

Each year, according to the Institute of Public Policy Research (IPPR), around 400,000 UK nationals move abroad to work or retire. Opening an offshore savings account could bring significant tax benefits once they cease being UK residents for tax purposes.

    Firstly, let's get rid of the age old myth that offshore banking is just
for the super-rich or super-sophisticated. As Jim Coupe, commercial director,
for Skipton International (http://www.skiptoninternational.com/) in Guernsey
comments, "This is just not the case in today's offshore financial
environment where choice of product, competitive rates and tight regulations
in offshore centres such as Guernsey make it an attractive marketplace for
all types of expatriates. With many familiar names in the offshore financial
environment such as Skipton International
(http://www.skiptoninternational.com/) Limited, and of course all the main UK
high street clearing banks, there is a wide range of products to choose from
to suit every facet of expatriate life - from easy access deposit accounts
(http://www.skiptoninternational.com/savings/?utm_source=mainMenu&utm_medium=t
extLink&utm_campaign=silWebsite&utm_term=savingsLink), sterling higher
interest notice
(http://www.skiptoninternational.com/savings/?utm_source=mainMenu&utm_medium=t
extLink&utm_campaign=silWebsite&utm_term=savingsLink) products and euro
(http://www.skiptoninternational.com/savings/productDetails/internationalEuroA
ccount.aspx) or US dollar savings
(http://www.skiptoninternational.com/savings/productDetails/internationalUsDol
lar.aspx) accounts. With minimum opening balances starting at GBP10,000 in
many cases, this is not a market the ordinary saver needs to feel excluded
from"

For many expatriates the type of banking relationship they are going to need during their time abroad is often not available or not appropriate from the UK high street. Expat customers tend to be retiring with capital, on short-term placements for career development or perhaps on a more attractive salary package (but possibly not the lavish salaries of previous years). Their needs are therefore different and require a different approach. Working expats will firstly be looking for a safe home for sterling or a safe place to deposit foreign earnings. International expatriates will be looking for flexibility and accessibility to match their global lifestyle, while others will be looking for tax planning advantages. Those who are retired will be looking for ways to generate a greater return on their savings, perhaps with a notice account or a fixed term bond.

Jim Coupe continues, "As the offshore subsidiary of Skipton Building Society, the 4th largest UK building society, we are committed to passing on the benefits of mutuality to our clients. That's why we consistently offer attractive rates and products to our expatriate clients, understanding their need for reliable and competitive investment products. We have just introduced our Two Year International Bond (http://www.skiptoninternational.com/savings/productDetails/2yearInternational Bond.aspx) paying 3.25% gross p.a./AER. For example, or for those needing shorter term access, sterling fixed deposit rates are available from 2.25% to 2.40% gross p.a./AER. With the two year product, on balances of GBP10,000 plus, savers can earn 3.25% Gross p.a./AER."

Offshore residents tend to have complex, multi currency income situations and therefore require a flexible and bespoke approach to savings.

One of the potential benefits of opening a deposit account offshore is taxation planning. Whilst everyone's individual circumstances vary and customers should always seek independent tax advice from specialist and regulated advisers, when living offshore you can potentially enjoy significant tax planning and other benefits. These could include receiving gross interest on your savings and the higher interest rates that are often available from specialist savings accounts found offshore. Many expatriates simply move abroad and leave their savings in accounts that lag the market onshore, where moreover unnecessary UK tax can still be deducted, further depressing returns.

Finally, remember that offshore banking for expatriates living and working abroad is thriving - use the web to help you access and research the comprehensive services and products available to help you in your expatriate life. Don't hesitate to take advice and review your financial planning at every stage of your expatriate life.

(Due to the length of these URLs, it may be necessary to copy and paste them hyperlink into your Internet browser's URL address field. Remove the space if one exists.)

Editor's notes:

1) Skipton International Limited (SIL) is a wholly owned subsidiary of Skipton Building Society (SBS), the UK's 4th largest building society with over GBP15 billion assets.

2) SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994, as amended.

3) Skipton Building Society has given an undertaking agreeing to discharge the liabilities of SIL in so far as SIL is unable to discharge them out of it own assets and whilst SIL remains a subsidiary of Skipton Building Society.

4) As a Licensed Bank in Guernsey, Skipton International Limited is a participant in the Guernsey Banking Deposit Compensation Scheme (the "Scheme") established by The Banking Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance, 2008 (the "Ordinance"). The following is a brief summary of the Scheme, but is not intended as a substitute for the actual wording of the Ordinance, a copy of which is available on request.

    - The Scheme only applies to 'qualifying deposits', which broadly means
      deposits made by natural persons for their own benefit; with a few
      limited exceptions such as, for example, deposits made by trustees of
      retirement annuity trust schemes, the Scheme does not apply to
      companies,trusts, partnerships or charities.

    - The Scheme will provide compensation in the event that a
      Licensed Bank is unable to repay its depositors. Under normal
      circumstances, payment will be made within 3 months of receipt of a
      valid claim form.

    - Compensation is limited to a maximum of GBP50,000 per individual
      claimant; in the case of a joint account each depositor would be
      entitled.

    - Total Scheme compensation in any five year period is limited to GBP100
      million. If claims exceed this cap, compensation would be reduced
      pro rata. The cap also means that compensation in respect of any one
      bank cannot exceed GBP100 million.

    - The amount payable may be reduced if the Bank has any
      contractual right of set-off against the account. The Scheme is
      entitled to recover compensation from any funds subsequently paid out
      by the Bank.

5) Deposits made with SIL are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000.

6) SIL places funds with SBS and thus its financial standing is linked to SBS. Publicly available information, including reports and accounts, is available from www.skipton.co.uk.

7) Copies of the latest SIL audited accounts are available on request.

For more information on Skipton International savings products, visit http://www.skiptoninternational.com or call +44(0)1481-727374

    Further information and a leaflet about the Scheme is available at:

    Website: http://www.dcs.gg
    Telephone: +44(0)1481-722756
    Post: P.O. Box 380, St Peter Port, GY1 3FY


    Media contacts: Please contact:

    Guy Stephenson/Jennifer Duffy
    Nacelle Limited
    Tel: +44(0)20-8333-9125, +44(0)7980-241-558
    E-mail: [email protected]

SOURCE Skipton International Limited