Your queries answered by DOMINIC COYLE
Going about opening a bank account in the UK
Q
Every day there seem to be new worries about the euro and about whether Ireland can survive the crisis without defaulting. This makes me worried about the safety of my savings.
Is it possible for an Irish resident to open an account in Britain, and how do you go about it? Are there any tax implications?
– Mr SW, Galway
A
Notwithstanding the prevarication of leaders across the euro zone, the betting is still strongly that the euro will survive the current crisis, if only because the prosect of the alternative seems too scary to countenance.
Having said that, only last week the prospect of individual countries having to leave the euro zone came into sharper focus when the Dutch prime minister and finance ministers became the first to openly address the ultimate possibility of such an outcome for countries unable, or unwilling, to put their financial houses in order.
As I have said before, there is nothing to suggest that Ireland or its banks are going to default. If anything, we are seen as being the most resolute in getting our debt back to manageable levels. However, it is possible for a resident of the Republic to open an account in the UK.
Possibly the easiest way for you to do so is by opening an account in Northern Ireland. A number of northern banks will facilitate this. Ulster Bank is one of the easier conduits in that you will be able to organise the whole thing from Galway.
If you are an Ulster Bank customer, the bank tells me that you can make an appointment with your local branch and a member of staff will advise you on the process and get things started.
You will need to bring identification (a passport or driving licence) and evidence of your current address.
Even if you are not a current Ulster Bank customer, it is worth checking with your local branch, as I understand (not from the bank) that several people have previously used the procedure in this way.
The standard process is that the account you open will be a sterling account. This has advantages if your driving force is a concern for the future of the euro, but it carries with it the added factor of foreign exchange conversion which could eat into your savings.
It is possible to open a euro account but this would presumably be a consideration only if you doubt the stability of Irish banks and the prospects of the deposit-protection scheme paying out on its commitments. Ulster Bank Ireland operates under the Irish deposit protection scheme, while its branches in the North will operate under UK provisions.
If you open an account through your local branch, it will be a deposit account, though you can open any type of account by visiting the Northern Ireland branch in person, the bank says.
In terms of tax, if you complete a “not ordinarily resident” declaration at the time of opening the account, any interest will be paid with no deductions and you settle your Dirt bill with the Revenue in Ireland. Otherwise, the bank will deduct tax at source on deposit interest and pay it to the UK tax authorities.
As I say, this is just the way the process operates at Ulster Bank. A number of other institutions offer similar facilities in Northern Ireland. It is also possible to open accounts in other jurisdictions, though the administration can be tiresome. In all cases, you are responsible for ensuring that you settle any tax issues withRevenue.]
This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into.
