Why is banking in Jersey different to anywhere else? Are there obvious benefits or drawbacks to placing your pounds in the largest of the British Channel Islands and if you do want to invest here, how do you go about it? These are just a few of the many questions you may have when considering where is the best place to secure your funds but fear not as help is at hand and more information on the subject will equip you with the knowledge you require to make an informed decision about your future financial forays.
The Channel Islands consist of five separate isles: Jersey, Guernsey, Herm, Sark and Alderney, all of which offer discerning banking customers a multitude of options not generally available with accounts in their homeland. The Channel Islands are therefore home to a thriving global commerce scene and appeal to investors both far and wide.
Jersey is located in a favourable position eighty five miles south of mainland Britain and a mere fourteen miles from the coast of France. And, it offers both businesses and investors the benefits of an independent international finance centre, which lies in close proximity to both Great Britain and mainland Europe.
Jersey’s geographical positioning means it is neither part of Britain or Europe and is therefore classed as a duty-free destination where prices are not subject to VAT and banking customers benefit from financial tax freedom. These are two of the main reasons why individuals from across the globe choose to place their money in offshore accounts based in destinations like Jersey.
Tax neutrality has obvious benefits and the way the tax system operates in Jersey means interest accrued on savings is paid gross without income tax being deducted. This in turn means you will have a larger final payout than you would on an account where interest is paid net, though it is important to remember your offshore savings are not tax free.
Savings tax directives dictate if you live within the UK the interest earned from money held in your offshore account is classed as taxable income and must be declared on the self-assessment tax returns which are completed annually. If you live and work outside of the UK, you must seek local tax advice to see if you need to pay any tax in your country of residence.
Due to the popularity of offshore banking, finance is a key sector in Jersey with around 13% of residents working as professionals in the financial services industry. Whatever your banking needs are, you can be sure you are in safe and knowledgeable hands; and with all major currencies accepted for financial transactions, your banking choices really couldn’t be more varied.