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100k to invest: UK, Offshore or Sg ?

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martincymru
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100k to invest: UK, Offshore or Sg ?

Postby martincymru » Thu, 03 Apr 2014 11:12 am

2 year fixed term bond/Sterling (say)

2.5% UK
2% Offshore
1% Sg

Let’s dismiss Sg.’cos interest rate too low.

My query/problem/dilemma is:

The UK option is the best rate but I would need to claim back the tax paid (I think it is 10% but please confirm). The form is R43 with a Certificate S975 needed.

Is it worth all the admin hassle with UK Tax office just to get another say .30% interest? I have been non-resident for tax as expat for 12 years and don’t really want to go back into the UK tax system unnecessarily.

Problem is offshore rates are generally poor.

Which option would you choose and why?

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BillyB
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Postby BillyB » Thu, 03 Apr 2014 12:17 pm

It's difficult to provide any advice based on the options you provided without knowing a little more detail.

Start by asking yourself a few questions:

- What's your goal - to hedge out inflation, aggressive growth etc.
- What's your risk appetite
- Your existing knowledge of investing / levels of interest
- Managed on your behalf or discretionary
- Time horizons
- Where you might be when the investment reaches maturity (for currency risk)
- Current investments / portfolio

It would then be easier to provide some thoughts.

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martincymru
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Postby martincymru » Thu, 03 Apr 2014 5:26 pm

BillyB wrote:It's difficult to provide any advice based on the options you provided without knowing a little more detail.

Start by asking yourself a few questions:

- What's your goal - to hedge out inflation, aggressive growth etc.
- What's your risk appetite
- Your existing knowledge of investing / levels of interest
- Managed on your behalf or discretionary
- Time horizons
- Where you might be when the investment reaches maturity (for currency risk)
- Current investments / portfolio

It would then be easier to provide some thoughts.


Good questions but perhaps I can re-phrase my post.

Does anyone have experience with investing in the UK and then claiming back the tax deducted at source?

I ask this because most institutions now will not pay interest gross and it is a pain (I think) to then later claim back from UK Tax Office.

korrpui
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Postby korrpui » Mon, 07 Apr 2014 4:30 pm

martincymru wrote:
BillyB wrote:It's difficult to provide any advice based on the options you provided without knowing a little more detail.

Start by asking yourself a few questions:

- What's your goal - to hedge out inflation, aggressive growth etc.
- What's your risk appetite
- Your existing knowledge of investing / levels of interest
- Managed on your behalf or discretionary
- Time horizons
- Where you might be when the investment reaches maturity (for currency risk, and
- Current investments / portfolio

It would then be easier to provide some thoughts.


Good questions but perhaps I can re-phrase my post.

Does anyone have experience with investing in the UK and then claiming back the tax deducted at source?

I ask this because most institutions now will not pay interest gross and it is a pain (I think) to then later claim back from UK Tax Office.


Are we talking £15k / SGD 30k region? Or in the 100s or millions region.

Distinctly different strategies for both scenarios.

Former - open a bank account if you have an NI number or are a UK citizen already, and just dump it into an ISA. Some banks pay almost up to 3% tax free if you are happy to tie the funds for 2-3 yrs and the ISA allowance will go up to £15k (by July, you can now choose all of it to go into cash or stocks, or split it in whatever ratio you desire). There's also exchange rate upside given the UK economy is improving - allegedly of course. Can't trust the ONS.... :P

Latter - call your private bank ;)


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