(UK) Earning interest on bankroll and legally avoiding tax

[Rotating Rabbit]

It seems to me thats theres not a lot of point having more than a couple of buyins in the poker account, and that the rest should be in an investment earning interest. (Yeah, I know this is kinda obvious, im a bit slow), after all, party dont pay us interest, of which they must get a shedload.

Now I'm from the UK, and so if I were to withdraw say 10k to my current account from party, and put it into a uk savings account I'd be tax free on the 10k via uk tax laws on gambling, but taxed fully on all interest payable as time goes by.

If I were instead to invest in an offshore savings investment, earn interest paying no tax (as the money is never being brought into the uk), then in a few years time move it back to my poker account and play some poker with it etc, then do the same withdrawal back to the UK, its no taxable, so I wont have paid tax on the interest earned in the period. Is this illegal?

[Freudian]

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If I were instead to invest in an offshore savings investment, earn interest paying no tax (as the money is never being brought into the uk), then in a few years time move it back to my poker account and play some poker with it etc, then do the same withdrawal back to the UK, its no taxable, so I wont have paid tax on the interest earned in the period. Is this illegal?

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You would most likely have to pay tax on the portion of the money that is non-poker profit. Doubt the taxman will find out though.

[daveymck]

Possibly would be seen as tax avoidance however unless you are a current 40% earner or director so have to fill in a tax return I dont see anyone ever looking into it.

The interest earned is still taxable in the UK even if it isnt brought into the UK if you are UK resident.

Inland Revenue Forign Income

I think also soe offshore investment funds you pay capital gains tax rather than income tax but this may have changed.

You may be better looking at some of the tax free savings options withing the UK and filling these up first.

As an IT contractor I may have to work abroad at times and it is a bit of a minefield especially places like Ireland and Switzerland.

[krazyace5]

What happened to your cool avatar davey? lose a bet?

[daveymck]

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What happened to your cool avatar davey? lose a bet?

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I felt like a change and as Elmo was at the WSOP I went for that for now till I find somthing better.