Offshore banking 'effective'

Offshore banking is ideal for expats who wish to make regular money transfers to their accounts, suggest industry experts.

Finance commentator Elizabeth Colman recently wrote in the Sunday Times that UK emigrants may pay less tax on their earnings than workers from Britain who do not use overseas banks.

The expert explained that if expats can fulfil certain criteria, such as proving they live less than 90 days per year in the UK and that they have broken ties with the country, they may be eligible for tax breaks.

"Offshore bank accounts are most effective for Britons living and working overseas," wrote Ms Colman.

"While you have to pay income tax on your earnings if brought in to the UK, there is no requirement to pay tax if you earn your money overseas and keep it there."

In other news, the European Commission recently released new proposals that may see countries sharing details concerning taxpayers in order to stamp out fraud.

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By John Mills