i want to open a offshore kaupthing savings account and want the interest in a separate account. The savings account is easy to open, but what about a (initially empty) account for the interest. I would want this just in case i need to transfer money back to the UK and can transfer the principle but not the interest.

I am a EU national so would i need to declare this interest (even if i dont need to pay tax on it)? Do i need to make declaration to the HMRC about by non dom status?

for those who are interested: you cant put interest into another account with offshore kaupthing edge. (although you can with some other banks).

i do need to tell/confirm with HMRC about non dom status. Dont need to declare the interest since its not UK income (and im not ordinary resident in UK).

You need to declare the interest if you bring it back into the UK.

Failure to do so would see you stung badly.

Otherwise you can roll up the interest outside of the country.