Under current UK tax legislation, there are potential advantages for individuals who are resident, but non-domiciled in the UK, (i.e.living in the UK, but born in another country) 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 completely 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. In this way,the client can 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 Fixed Term Deposit Accounts for the following time periods:

7 day fixed 2 weeks fixed 1 month fixed 2 months fixed 3 months fixed 6 months fixed 12 months fixed
		Please click below for a personalised deposit rate quotation

Key features include:

• Minimum balance of £5,000 or currency equivalent, with no maximum.
  
• A guaranteed fixed rate until the account matures.
  
• Interest paid at the end of the fixed-term into a separate “Income” account.
  
• At the end of the fixed term the “Capital” element of the account will be automatically re-invested for the same term unless otherwise instructed.
  
• Withdrawals are permitted at any time on the following basis
  

• Interest on your account is paid gross without any tax being deducted or withheld by the Bank.  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. **Please see below for details of the EU Savings Tax Directive.
  
• Both “Capital” and “Income” accounts will be identical and have the same interest rates and terms and conditions.
  
• Available in all major currencies.

Please ensure you have read and understood these key features and the terms and conditions included within the application form before applying.

*IMPORTANT NOTE: Bank of Ireland (I.O.M.) Limited does not give tax advice and strongly recommends that you speak to a qualified tax adviser regarding the setting up of a capital and income deposit account. Bank of Ireland (I.O.M.) Limited does not warrant or confirm the accuracy of the information given above. This information is given for information purposes only and should not be relied upon without obtaining independent professional tax advice.

**EU Savings Tax Directive
With effect from 1st July 2005, interest on deposit accounts for account holders who are resident in the European Union may have a Retention Tax deducted from the Gross Interest payments.  This is to comply with the European Union Savings Tax Directive (the "Directive"). You may be able to avail of an exemption from this Retention Tax in accordance with the Directive.  Please contact us for further details. If the Bank is required to make a deduction for Retention Tax on any sums payable by the Bank to you, the Bank shall have no liability to you in respect of any loss suffered by you. If the Bank is required to make a payment in respect of Retention Tax as a result of your failure to pay such tax, you agree to indemnify and reimburse the Bank for any such payments together with the Bank's reasonable costs incurred.