Originally Posted by
whakapapa
I am fairly sure you can request the UK bank you are with mark you as non domiciled and therefore the bank don't take UK tax from any interest you earn.
The last time I looked into this there were only a couple of banks that would do it with a registered overseas address. HMRC should be able to advise you on which banks currently offer this.
You will only pay UK tax on the interest earned in the UK if you exceed the personal allowance, which is currently £7,475 for under 65s. If they are joint assets, that's £14,950 worth of interest before you need to pay tax. However, the tax will be deducted at source by most banks, so you will need to complete a UK tax return to claim the refund.
If you are expecting to earn more interest than your personal allowance (or if you don't want tax deducting at source), then it might be worth considering an offshore savings account in somewhere like the Isle of Man.
www.moneyfacts.co.uk lists the latest interest rates for offshore accounts. Interest is paid tax free for non-EU residents.