Why Go Offshore With Your Savings and Banking?

Offshore Savings Accounts Can Offer Valuable Tax Savings

ST PETER PORT, Guernsey, April 30, 2010 - 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 (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 (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
(www.skiptoninternational.com/savings/?utm_source=mainMenu&utm_medium=textLink&utm_campaign=silWebsite&utm_term=savingsLink), sterling higher
interest notice
(www.skiptoninternational.com/savings/?utm_source=mainMenu&utm_medium=textLink&utm_campaign=silWebsite&utm_term=savingsLink) products and euro
(www.skiptoninternational.com/savings/productDetails/internationalEuroAccount.aspx)
or US dollar savings
(www.skiptoninternational.com/savings/productDetails/internationalUsDollar.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
(www.skiptoninternational.com/savings/productDetails/2yearInternationalBond.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
www.skiptoninternational.com or call +44(0)1481-727374

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

    Website: 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: jenny@nacelle.co.uk

Guy Stephenson/Jennifer Duffy, Nacelle Limited, Tel: +44(0)20-8333-9125, +44(0)7980-241-558, E-mail: jenny at nacelle.co.uk