Offshore Banking

[Siani]

Does anyone know much about offshore banking please? The reason why I ask is that some years back I sold a lease on a shop. The terms of the sale of the lease were that if the new owner of the lease were to default with payment or go broke, the lease would then revert back to me and I would be responsible for the payment of this lease. Even though I had sold it. At the moment there has not been any problem at all. The company I sold to are still in business in fact. I have noticed though, that they have closed some branches for their company. I worry that if I left my money in the UK banks that it could be touched if a problem should arise. Just being cautious really. Does anyone know if offshore accounts in banks? Are they safe from this sort of problem should it arise? In my retirement I want the security of knowing that my assets are safe. Should I transfer all my money to Thailand? Is that a good option? Siani

[richard]

I have always had all three. Bank in UK, bank in Jersey and a bank in Thailand. Split was basically days ins and outs in UK. Jersey - savings. Thailand - pocket money. My advice would to continue banking in the UK for pension input etc transferring overload into Jersey. Thailand bank for years pocket money.

Of course Jersey or other offshore destinations will charge if you do not deposit enough.

Other thing is with a UK bank, UK doctor and UK address you remain a resident status should you need to go back.

[Siani]

Thanks Richard. Good advice. Do you know if your Jersey account can be access by a court order from the UK? I worry about this lease I sold should the firm I sold it to go bankrupt. There is no threat at this time, but you never know what the future may bring. I do not want to be sitting in my rocking chair in HH and find all my assets could be or are frozen. Thanks Siani

[richard]

I dont know the answer to that.

Certainly used to be the case many years ago. Difficult for people to find out your account there existed

Any other forum reader know?

[Siani]

Thanks Richard. I have just gone to the HSBC website I found a section "In an offshore jurisdiction. Offshore accounts are not governed by your country of residence but by the laws of the offshore jurisdiction where they are held" So I think that it as you say. But as you suggest maybe other forum reader may know. I would welcome any advise at all. Many thanks Siani

[hhfarang]

Since 9/11 it is difficult to hide money offshore as most western countries cooperate in making sure terrorists are not being supported by such bank accounts. You may be safe from the U.K. but as a U.S. citizen I would not feel comfortable hiding money anywhere in the world. The I.R.S. is everywhere now.

[Siani]

Thanks for the info. I do not want to hide money. All my money is mainly from the sale of my property, not taxable. I just wanted to put it somewhere safe. It is just this lease I sold, making sure that the owner of the premises cannot come on to me for payment, should the person I sold it to goes down the Swannee! I do not mind him (owner) knowing I have money in the bank ...just so long as they cannot touch it. I bought this new lease about 8 years ago and it has another 2 years left to run. It just has this small clause in it, that it reverts back to the original owner, of the lease, in this case me, in cases of default. They have not defaulted at all, they in fact probably won't. I just am playing it safe. Many thanks Siani

[chopsticks]

There's little advantage in having an offshore account these days, at least if it's held in Channel Islands or IOM etc.
A few years ago Lloyds-TSB Offshore passed on detailed info of their account holders to UK tax authorities on the basis that their computer sytems were/are located in UK so considered as under UK jurisdiction.
Similar story with Barclays, as I recall, or one of the other big banks located there.
In fact there are some disadvantages in having an offshore account as the interest rates they pay are often lower and there's no UK government bail-out protection for the first 50 000 if they were to fail.
This caused some worries for those who had invested in Icelandic banks recently until the UK government decided to guarantee personal savings with them.

[Siani]

Thanks for the info. I do not mind the tax authority knowing what I have as I am fully paid up with all my tax. I just wanted to put it somewhere safe. It is just this lease I sold, making sure that the owner of the premises cannot come on to me for payment, should the person I sold it to goes down the Swannee! I do not mind him (owner) knowing I have money in the bank ...just so long as they cannot touch it. I bought this new lease about 8 years ago and it has another 2 years left to run. It just has this small clause in it, that it reverts back to the original owner, of the lease, in this case me, in cases of default. They have not defaulted at all, they in fact probably won't. I just am playing it safe. Many thanks Siani

[migrant]

I deal with offshore banking here in the states.

The advantage you are looking for can be done for US citizens, but I don't know about UK.

Here, as you found, lawsuits must be addressed to the country whose jurisdiction the entity was set up in.

Here in the states we set up a business entity called a limited liability company in a country such as Nevis or the Cook Islands. The individuals investments then are transferred to the entity's name.

Even if the funds are held here in the states, if sued, the laws of Nevis take over which are much more protective than those here in the states.

I'm on the bean counting end, but will ask the lawyers if they have any contacts in the UK.

Good Luck

[Siani]

Many thanks for the info. All info is gratefully accepted and very useful. If you do find out later please let me know Thanks Siani

[malcolminthemiddle]

I would say the terms of the sale of the lease remained unchanged by where you bank.

If the new owner of the lease were to default with payment or go broke, and you would be responsible for the payment of this lease according to the terms of the sale you would have to declare bankrupcy in the UK to avoid payment. That may prove difficult if you have any UK assets or there is a paper trail from the UK to an offshore bank.

[Siani]

Thanks for the reply. It would not be a great sum even if I had to pay it. there would not be any question of bancrupcy. I would just have to pay the rent on the rest of the term of the lease. I just would not want to pay it, just as a matter of principle. They are a limited company who would still retain their homes etc. and would loose nothing. I am not limited and would loose some assets if a claim were to be made. It is just I took out the new lease and they bought it from me, if they default all rental payments outstanding would come back to me.
So you think that an offshore bank would get involved with uk claims? Thanks Siani

[Super Joe]

So you think that an offshore bank would get involved with uk claims? Thanks Siani

I've always thought it was protected from UK civil claims due to the Channel Island's having their own laws and legal system, and it was only serious criminal cases that they co-operate with!?!?

But not really sure about that question, but you can open a foreign currency account here in Thailand, so your Sterling could be held here and unnaffected by any exchange rates. They pay minimal interest though.

SJ

[Siani]

Thanks for the info. Maybe the foreign currency account is an excellent idea, thanks I will certainly look into it. Things have hotted up with me as I have accepted an offer on my house here. I will get the ball rolling on Tuesday after the holiday. Thanks Siani