Financial advice needed

[ron_jh 0]

Next year planning to obtain a retirement visa and stay in Sisaket.

In the UK I have an account which pays about 5.5% interest on my savings.

Have been told that I will have to close the account because I will not be living in the UK.

Could anyone advise me where to open an account that pays reasonable interest and is easy

to transfer money to a Thai bank.

 

Regards

Ronnie

[zaphodbeeblebrox 0]

Next year planning to obtain a retirement visa and stay in Sisaket.

In the UK I have an account which pays about 5.5% interest on my savings.

Have been told that I will have to close the account because I will not be living in the UK.

Could anyone advise me where to open an account that pays reasonable interest and is easy

to transfer money to a Thai bank.

 

Regards

Ronnie

 

I can't speak for the UK, but for the US, I have a post office box that I maintain for a US address. I have a brokerage account with E*Trade. I can wire money directly from that account to my Thai bank. I also have ATM access with no ATM fees (daily withdrawal limit is currently THB 34,000). The money in my account, that is not invested in stocks or bonds, I hold in a savings account and earns 5.05% interest. I can freely transfer money within in my E*Trade accounts online instantaneously. I maintain a separate debit card ATM account, just for emergencies, but have never used that account in LOS.

[jacko 8,866]

It depends if you can 'maintain' a UK address. Most UK bank accounts are not open to 'non-residents'. But if you do not tell them, you can have the statements mailed to a sister, brother or parents home, they are only useless paper. Do everything online.

 

Another alternative might be to go offshore. Hold an 'International Access Account', which will not pay much interest but you can easily transfer funds from to Thailand. Then keep the bulk of your money in fixed term deposits or National Savings Income Bonds. (Only about 5% or 5.5% paid gross respectively). Interest proceeds are automatically put into your International Access Account. After you qualify as a UK non-resident, that would be tax-free.

 

I use Standard Chartered in Jersey, the Isle of Man is also popular.

Edited August 22, 2007 by jacko

[torrenova 649]

Ronnie,

 

Don;t tell people everything. Your bank does not need to know where you live. Have statements cut down to a minimum or not at all. You can have everything held at the bank anyway. You just tell them you are going on a 6 month vacation or something and will be doing everything online.

[jonnyboy 0]

Ronnie,

 

You can open an online saving account with Bradford and Bingley by going to www.bbi.co.im. They offer a pretty sweet 6% tax-free rate of interest. You can transfer money easily using SWIFT. Kasikorn bank charge under 2000 baht per transfer while B&B charge around 30 pounds.

[Eneukman 1]

This is what I did.

 

Before I retired to live here, I had the address on my Nationwide accounts changed to my brother's address. Statements are sent to him monthly as normal. I could actually cancel the paper statements if I so wished.

 

In addition, I also opened an account offshore with Nationwide Isle of Man.

 

I can do virtually everything on line but the Nationwide Isle of Man have a note of my address in Thailand as otherwise they would have to deduct EU withholding tax. Any mail still goes to my brother though.

 

Alan

[ron_jh 0]

Thanks guys for your help and suggestions. Looking at Abbey International Instant Account, (http://www.abbeyinternational.com/instant.asp) looks promising but difficult to open before actually making the move. In November I am in Sisaket for 3 months (Non immigration visa) so will try and open a Thai bank account with my Thai address referenced on the passbook.

This might satisfy the criteria for opening an International Offshore account when I return to the UK, because I

would prefer to have this in place before finally leaving for retirement.

 

Ronnie

[Bazle 1,514]

Ronnie

 

I don't think the advice given here is possibly the best for you, simply because you haven't given all the necessary facts to work with. For instance,

 

* what is your UK tax status going to be - i.e. are you going to be resident in the UK or not? This is far from straightforward and you might wish to take professional advice.

 

* how much notice can you give when accessing the money?

 

* where do you need the money - UK or LOS?

 

* what do you mean when you mention "the criteria for opening an International Offshore account when I return to the UK"? Whose criterion? What is the aim?

 

Cheers.

 

Bazle

[ron_jh 0]

Perhaps I have not made my position very clear.

My Thai girlfriend owns a farm in Sisaket where I shall live when I retire.

In November I am coming to Sisaket on a 90 day 'O' visa and returning to the UK in February. When I return to the UK in February, my intention is to sell my house and take my works pension. (I will then be 60 years old with no dependants). When my house is sold I will return to Thailand on a Non immigration O visa and will convert to a retirement visa when I get there. I am basically trying work out the best place to put my money so I can live off the interest plus my pension.

Once I have sold my house, I would like to make any financial arrangements whilst in the UK rather than try and make them once I am in Thailand, because I think easier to sort problems out.

Reading the rules for opening an offshore account requires documentation to prove that you are exempt from UK tax. A copy of a Thai bank account in my name with my address in Sisaket I think will meet these requirements, so I will try and open a bank account when i come in November.

Thats my thinking at the moment.

 

Any helpful comments would be most welcome.

 

Ronnie

[jacko 8,866]

Ronnie

 

I don't think the advice given here is possibly the best for you, simply because you haven't given all the necessary facts to work with. For instance,

 

* what is your UK tax status going to be - i.e. are you going to be resident in the UK or not? This is far from straightforward and you might wish to take professional advice.

 

* how much notice can you give when accessing the money?

 

* where do you need the money - UK or LOS?

 

* what do you mean when you mention "the criteria for opening an International Offshore account when I return to the UK"? Whose criterion? What is the aim?

 

Cheers.

 

Bazle

Not sure why you are posting questions rather than answers....

 

His UK tax status would be 'liable' as long as he is still 'resident'. Qualifying as a non-resident (for tax purposes) has become more difficult recently, but by no means impossible. Determine the criteria and understand and conform. (Check on this! There are UK government web pages that define it quite well.) At most being out of the UK with no place of residence or dependents there for a specified time, should do it.

 

Although if one has decided not to live in the UK again, I would simply deposit my money in Income Bonds, as tax is not deducted at source and wait it out.

 

If he can live off pension and bank interest, why does he have to worry about accessing his deposit?

 

Anyhow, at worst it would be a few months. I wouldn't consider a long term deposit, like those 5 year ideas.

 

Might want to look at that Indian Bank...ICICI. http://www.icicibank.co.uk/ or why even close your existing account?

 

If he is living in LOS, then he needs spending money there... and maybe 800,000 baht on deposit in LOS to qualify for the retirement visa (or he can just verify the pension income). Keep the bulk on deposit in the UK or offshore UK. You might just need to return!

 

I don't know what the criteria are to open an offshore account these days, had mine for 25+ years. Surely the difficulty is just proving non-residence status to qualify for tax exemption. Get the account sorted first, worry about tax later. This is not where the bulk of the money will be.

 

Good luck Ron, it isn't as difficult as you may think. You are doing the right thing posting here, but back it up with some research of your own. Start here http://www.hmrc.gov.uk/cnr/ and keep asking questions. Us guys out here love to help, we are all getting on and want to feel we are still useful.

Edited August 30, 2007 by jacko

[Bazle 1,514]

Not sure why you are posting questions rather than answers....

In order not to complicate an answer with a plethora of ifs and buts.

His UK tax status would be 'liable' as long as he is still 'resident'. Qualifying as a non-resident (for tax purposes) has become more difficult recently, but by no means impossible. Determine the criteria and understand and conform. (Check on this! There are UK government web pages that define it quite well.) At most being out of the UK with no place of residence or dependents there for a specified time, should do it.

Given Ronnie's further information, I think there is a fair chance that he will become non-UK resident. When he leaves the UK, he needs to complete a form P85, which can be downloaded from HMRC's website, and submit it to HMRC.

Although if one has decided not to live in the UK again, I would simply deposit my money in Income Bonds, as tax is not deducted at source and wait it out.

This is very much a personal investment decision. Ronnie could equally put his money in an account outside of the UK in, say, the Channel Is. It also involves deciding in what currency to hold the investment. If Ronnie believes that Sterling is at a high right now, he might like to invest part of the money in Euros or some other currency.

If he can live off pension and bank interest, why does he have to worry about accessing his deposit?

That information was provided AFTER I had posted.

Anyhow, at worst it would be a few months. I wouldn't consider a long term deposit, like those 5 year ideas.

Might want to look at that Indian Bank...ICICI. http://www.icicibank.co.uk/ or why even close your existing account?

Probably the existing account isn't paying the best interest rate available.

If he is living in LOS, then he needs spending money there... and maybe 800,000 baht on deposit in LOS to qualify for the retirement visa (or he can just verify the pension income). Keep the bulk on deposit in the UK or offshore UK. You might just need to return!

Ronnie should also consider not keeping everything in cash and putting at least some into the stock market. I know it's a bad time to make such a remark but it should be kept in mind and if in a few months the markets settle down perhaps some investment advice taken. Owen has posted a lot about this - just search his threads.

I don't know what the criteria are to open an offshore account these days, had mine for 25+ years. Surely the difficulty is just proving non-residence status to qualify for tax exemption. Get the account sorted first, worry about tax later. This is not where the bulk of the money will be.

There will not be UK tax exemption on the pension, even if Ronnie is non-UK resident. However, he will be able to set off his personal allowance (c£5K) against it. The best that should be achieved is keeping the investment income out of UK tax.

Good luck Ron, it isn't as difficult as you may think. You are doing the right thing posting here, but back it up with some research of your own. Start here http://www.hmrc.gov.uk/cnr/ and keep asking questions. Us guys out here love to help, we are all getting on and want to feel we are still useful.

Yes, agreed. The HMRC website is essential reading.

 

 

Ronnie mentions "Reading the rules for opening an offshore account requires documentation to prove that you are exempt from UK tax". I think he is confusing making a declaration that he is non-UK resident so that interest can be paid gross as opposed to opening an offshore account.

 

Have to go to work now. Maybe elaborate at another time.

 

Bazle