Offshore Tax

T

tvmania

Guest
Hi …

I have a few queries, which I hope some of you won’t mind in taking time to answer.

My wife & I have some monies (approx. 300,000) in sterling in an offshore account & currently pay 42% in tax + 2% prsi on the interest earned. The interest earned on the account is approx. 4.7%.

We are now thinking of changing the money over to euro & transferring it to an Irish deposit a/c account, such as Northern Rocks online a/c (interest rate 3.05%). Other than paying 20% on the interest earned, is there any other tax implication we should be considering? (My wife is English but has been resident in Ireland since 1998 & I am Irish).

Also, is the above a wise move or not? … The reasons we are considering doing this are easier access / management of the money, sterling / euro exchange rate forecasts looking less healthy down the road & interest earned after tax in offshore a/c seems to balance out when compared to interest earned in an Irish deposit a/c.

We are also thinking of putting a side some of the sterling (approx. 20000) into a UK a/c as we travel over there a few times a year. According to our accountant interest earned on such an account would be now taxed @ 20% (not taking into account tax paid in the UK).
Is this case or not?

Also, on the subject of changing the money in to euro, we are thinking of using a foreign exchange broker based in the UK. Has anybody got any other suggestions?

Any advice / opinions would be much appreciated ... Thank you!
 
You need expert tax advise on this one. The options you select could have all sorts of tax implications for you and your wife in Ireland and the UK. This is not a glib answer, but is the truth. See a tax advisor.
 
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