Capital and Income Deposits
Under current Tax Rules, there are potential advantages for individuals who are resident, but non-domiciled in the UK to bank offshore.
The key to an appropriate structure to maximise the advantage is the ability to separate capital and interest. Capital can be remitted to the UK tax-free, however, interest must remain outside the jurisdiction of the UK to retain its tax-free status.
In order to separate capital and interest, accrued interest must not be credited to, or mixed with the capital element. As such, at maturity, any interest accrued must be paid directly to a stand alone interest account. The client must clearly distinguish between the capital element of their deposit, and the interest element of their deposit.
As such, part(s) of the capital element can be remitted into the UK without tax liability, while the interest element can either remain offshore, or be remitted to another jurisdiction other than the UK.
We offer competitive Capital & Income accounts for the following time periods; 7 day fixed, 1, 2, 3, 6 and 12 months fixed
- Minimum balance of £5,000 or currency equivalent, no maximum
- A guaranteed fixed rate until the account matures.
- Interest paid at the end of the term into a separate “Income” account.
- At the end of the fixed term the “Capital” and “Income” elements of the account will be automatically re-invested for the same term unless otherwise instructed.
- Withdrawals are permitted on the following basis:
- At Maturity– no charges are made to withdraw from a call deposit or
fixed deposit however a charge may be applicable if the funds are to be
paid away to an account outside Bank of Ireland.**
- During the Fixed Term– withdrawals are permitted but will
be subject to a breakage fee**
- Both “Capital” and “Income” accounts will be identical and have the same interest rates and terms and conditions.
- Available in all major currency
- Interest is paid gross#
** Please refer to our Schedule of Charges for full details. All documents are available in our 'Documentation' section.
Please ensure you have read and understood the product key benefits and the terms and conditions before applying for an account. All documents are available in our 'Documentation' section.
You may have a tax liability in your country of residence in respect of interest paid on deposits with the Bank. It is your responsibility to obtain tax advice and to make all tax payments, returns and disclosures to the relevant authorities.
For information on the Financial Compensation Scheme that covers this product click here
# Gross rates are fixed. Interest will be paid without the deduction of income tax to all depositors, (Exchange of Information will apply to all depositors resident in the EU). However it is the responsibility of individuals to discharge any tax liability they may have.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded each year. As every advert for a savings product that quotes an interest rate will contain and AER, you will be able to compare more easily what return you can expect from your savings over time.