Sterling bank account

T

Tim

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I recently inherited shares in a number of UK companies. I receive dividend payments from these in small sums, each between £20 - £50, totalling around £1,000 a year (after deduction of UK tax).

When I lodge these cheques to my bank account, the Bank takes a commission and a transaction fee that swallows up a sizeable percentage of the value.

Can I open a sterling bank account if I am resident in Ireland; best of all, one that pays some sort of interest?
Most of the companies whose shares I hold will pay the dividends directly into a sterling account but will not do so into an Irish (euro) one.

I am not especially interested in spending these dividends, but would prefer to have them available when I visit the North and Britain, perhaps most conveniently by having a card for cash machine withdrawals.
 
You might find that the UK companies are unable/unwilling to pay into a sterling account at an Irish bank. Or if they did, such electronic transactions would also attract high charges. I guess you'd have to open up an account at a UK bank. Alternatively, check to see if the companies have Dividend Reinvestment Programs (DRIPs) which allow you to reinvest your dividends in further shares (or partial shares) in the company. That's what I do with my US investments to avoid a pile of foreign currency cheques for small amounts.
 
foreign account

You should be aware that anyone opening a foreign bank account is obliged to inform the Revenue of same. Usually done on the annual tax return as far as I know.
 
foreign account

Following on from these replies, if someone living in the UK deposits money in an Irish euro account with a view to investing in a home in the RoI later, must interest be notified to the Revenue in the UK? (around Euro 100,000 part of an inheritance and not subject to tax) or the Irish Revenue? (I live UK currently but am considering retiring to RoI)
 
UK resident with ROI bank account

There was an article in last Sunday's Observer about this.

The basic point was that if you're Irish domiciled, and UK resident, the UK taxman is not worried about interest earned on foreign investments unless you remit the proceeds back to the UK.

So as long as you don't move the money back to the UK before taking up residence in Ireland, no tax should be payable in either jurisdiction. Once you become resident in Ireland, you will obviously be subject to Irish taxes.

Hope this helps.
 
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