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  Gary - there is an important issue here of free movement of capital which is a two way trade.
  
  Once again we are talking small amounts invested offshore on the overall scale of things. I frequently recommend offshore investing when it is appropriate, normally using jurisdictions in the Channel islands, Isle of Man, Dublin and Brussels. That money is not locked away and much of it gets reinvested into UK companies through collective investment schemes. It remains in circulation and indeed some tax gets paid as well, Inheritance Tax and often a withholding tax are liable with, in many cases, income tax when certain circumstances apply. The advantage of offshore investing is something called gross roll up which can be important for UK citizens who work or live abroad or who might suffer a double tax burden if invested in some UK investments.
  
  Some investments offshore usually generates profits for British investors and these can form part of UK Plc's 'invisible' earnings. We often complain about foreign companies investing here by buying UK companies, we do the same back!
  
  I am not saying that there are not some who use exotic jurisdictions (or even those I mentioned) in a dishonest way but that does not characterise everyone who invests offshore only a minority.

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