Does UK citizenship impact on non domicile status?

Tax Question: Good morning, Could you please advise? A person sells a property in June 2024,pays the CGT as requested on the gain. Say the CGT rate changes to a higher rate in 2024/25 then may there be more tax to be paid? Thank you...keep reading

 Tax Question Our company has surplus balance in our currency account. (US dollar)  due to a slowdown. We get a far better return on a fixed term if the funds are placed abroad for a fixed period of one year. However The funds have to be placed in a personal name with an overseas bank. Is it possible to place the deposit in  my personal name however on behalf of the company. The principal and interest will be transferred back to the company on maturity and reflect in the company accounts. The overseas bank is aware these are company funds and no tax will be charged abroad. We can make a private agreement, or even a trust deed from or solicitor or advise HMRC, which option you think is the best so they do not treat this as a loan given to the director....keep reading

Tax Question: Hi. This is a hypothetical situation where the Limited Company (Subsidiary) is incorporated in UK, having no Permanent Establishment and no clients in UK. And the Holding Company is situated in Bulgaria. In this case which country the Subsidiary Company will be considered as Tax Resident and what are taxes that the Subsidiary will be liable to pay. Also what will be tax liability of the Holding Company if it receives Dividend, Interest and Capital Gains from the subsidiary....keep reading

Tax Question: Can a UK Limited Company (a Subsidiary of a Bulgarian Holding Company) having no permanent establishment and no clients in UK be non-resident in UK for tax purposes (Explain Why). If yes, is there any kind of income on which it has to pay taxes in UK only?...keep reading

Tax Question: I would like to ask about the idea of someone buying lots of shares in the stock market and holding them for a long time.  If these shares then double or more in price and would therefore result in a very large capital gain, would it be possible for the owner of the shares to move abroad to e.g., Dubai where there is no tax payable, and then sell the shares, and remain there for 5 years to become non resident before coming back to the UK?  Would that work in terms of not having to pay any capital gains tax on the gains?...keep reading

If a man is a non uk resident and non uk domicile, are his UK assets subject to IHT. If so - What are the IHT allowances - How much can he pass to his spouse without incurring IHT. Is it the total estate just like a UK resident, or is there a limit...keep reading

Tax Question: Hi Will there be SDLT to pay if properties are transferred into a trust based on market value. Assuming each value will be over the minimum thresholds? Thanks...keep reading

Tax Question: Hello. I have a question regarding inheritance tax. As a potential beneficiary to an estate who is not a resident of the UK, will I be subject to UK inheritance tax or the equivalent tax of the country where I reside?...keep reading

Tax Question: My company is cash rich I am the majority shareholder and I wish to purchase the other shareholders shares Whats the best way to do this?...keep reading

Question: Are there any UK tax implications for me (non-UK domicile non-UK resident) to send 11.000 pounds to daughter (non-dom but currently UK resident- since two years ago ) who is studying at university level in the UK at present ? Can I send the fund from my Jersey sterling account to her Isle of Man sterling account on which she can then write out a cheque ? Thank you...keep reading

Question: Having calculated goodwill being acquired by a limited company from a limited liability partnership, does the goodwill have to be reflected in the final balance sheet of the partnership accounts?...keep reading

Tax Question: dear wealth protection report i'm trying to understand what expenses i am allowed to claim for regarding company AGM meetings? if i plan to hold the company AGM in another location/city, book hotel accomodation, is the accomodation, food, travel expenses etc permissible as expenses? what would i have to do to ensure that i can prove that the purpose was for the AGM? kind regards...keep reading

Tax Question: My parents are UK doms and have a discretionary trust in the UK. Can this trust be moved to an offshore location? If so, will doing so provide any inheritance tax advantages? Thanks....keep reading

Tax Question: A franchise business has units in various shopping center. the Business is a UK Limited Company. Each unit is run by employees. The directors of the company manage each unit by visiting the shopping center and checking if everything is OK. Each directors are home based. Can he directors claim home to shopping center mileage?...keep reading

Tax Question: What is the best way of becoming NON domiciled of UK? I have been fiscally resident outside of the UK since 1995. Now fiscally resident in Portugal....keep reading

Tax Question: Hello - I have recently taken on an author who is UK resident but has also received book royalties from Germany. She has received such royalties from Germany over the past 4 years but the German publisher deducted withholding tax at 15.825% as the client did not provide any proof of UK residence. Had the client provided such proof then no German tax would have been deducted. I am in the process of preparing SA Tax Returns for the 4 years as she has not previously notified HMRC of her liability. Under the terms of the UK/German DTA - Article 12 - the royalties arising in Germany should only be taxed in the UK. Am I right in thinking that ,under any claim for Double Tax relief, the amount cannot exceed the overseas tax payable under the Treaty and that would be nil as no such German tax should be payable under Article 12? Is my client`s only recourse to approach the German Tax authorities to seek repayment of the tax by them? Thank you...keep reading

Tax Question: Purchasing an up and running exiting website. The Website is capitalised and will be depreciated. Can a company claim capital allowances and use the AIA for the year ? Or if the asset an Intangible asset [and amortised], what allowances can be claimed ? Thanks...keep reading

Tax Question: If a director and shareholder of a company incurs significant legal costs to exit that business to establish a similar trade / business in the same sector, are there any grounds for those costs being allowed in the new company as an allowable expense?...keep reading

Tax Question: My mother has put her house into 2 trusts: !. My fathers half, valued at £250K. Done by deed of variation, now in a discretionary will trust (beneficiaries= 3 children) 2.My mother's half valued at £325K in a family trust, same beneficiaries. She doesn't pay rent to the trusts therefore I assume they are in her taxable estate for IHT The house is now worth £1M. What will the tax status be when my mother dies? Can we assume full nil-rate band on house as she lives there or will the trusts be liable to CGT as beneficiaries of trusts are all home owners and higher rate tax payers. Thanks...keep reading

Tax Question: If I am a member of an LLP that purchases several classic cars for investment purposes but also to use. Are the costs of maintaining and running the vehicles available as losses to be offset against the members of the LLP's other income?...keep reading

Tax Question: Is the Dutch ZvW-contribution paid by a UK resident in fact "Dutch tax" and therefore potentially eligible for foreign tax credit relief? Or is this a non starter?...keep reading

Tax Question: Hi everyone, apologies if my question makes me appear a bit 'wet behind the ears' but is there: Any means of rewriting the will of a recently deceased person,using a 'Deed of Variation' to create a discretionary trust and escape a large inheritance tax on their estate? Many thanks for your time, A....keep reading

Tax Question: Box 7 of IHT 402. My father died in September and everything was left to mum in his Will. Mum died in August. Main asset was house - value £750,000 plus some cash so total about £800K. What value do I put in box 7 of IHT 402? I assume it would be £400,000 being Dad's half of the assets at death which were all in joint names. But no formal valuation of the Estate was done at the time as all left to mum. Or, should the value in box 7 be £nil as his estate was exempt from IHT by virtue of the spousal exemption? Your help please!!!! Thank you!!!...keep reading

Tax Question: Can non-dom own shares of isle of man co or BVI co or Malta co and not have deemed distribution...keep reading

Tax Question: I inherited my husband's estate and want to pass some or all of it to our children, grandchildren, and great-grandchildren. Can I do so without them being liable for inheritance tax? The legacy has been in my bank account for only two weeks and has never formed part of my estate....keep reading

Question: A mother X gifts her daughter Y her house. The daughter moves in with her even though the Y has another house (her main residence). X becomes disabled. X pays all the utility bills. Y pays the other expenses. Y owns the house outright. They live together for more than 15 years. X dies. Does the whole house or half the house belong to Y estate?...keep reading

Tax Question: We are going to sell our house and we are considering selling the garden at the side of us as a building plot. The entire garden [including that at the side]is less than half an acre will we have to pay CGT on the side garden land?...keep reading

Tax Question: H & W own a 'dormant' holding company in equal shares, this holding company owns a 25% share in a property investment company. Is there a tax efficient way of collapsing (removing) the holding company such that H & W own 25% share directly in the property investment company?...keep reading

Question: I understand that my domicile of origin is the nationality of my father (my parents were married when I appeared!). My father was born in Ireland pre-1949 (i.e. pre Republic and before the establishment of Northern Ireland). I was however born on UK territory where my father was living at the time. Is my domicile of origin Ireland or the UK?...keep reading

Tax Question: Hi Would a non-resident person be subject to income tax on any interest he charged on a loan to my UK Ltd company (interest would be rolled-up annually)? I am establishing a company to buy some land and build a house to let out but banks are not really interested in lending a startup company money on that basis. I have a non-resident family member who will lend the money but wants to charge a commercial rate of interest (I assume that could be high if no bank will do it) and doesn't want to pay UK tax. Is this possible? Thanks Yasman...keep reading

Tax Question: Hi, Is there a minimum period of time a donor of a business must survive for in order for the recipient to be free from any tax liability? thanks...keep reading

Tax Question: Hi, Co A is developing houses for rent and has been entirely funded by the directors. Upon completion, the company will apply for finance secured on the development so that it can repay the directors. Is it correct for the Co to claim tax relief for the interest payable on the loan? Thanks...keep reading

Tax Question: For the following part time business of (a) mini cab business (b)lending short term finance at market rates to his friends and associates. (c) rare stamp dealing. Are these iht qualifying assets for BPR?...keep reading

Tax Question: Sirs, Does a person who reside in England has to pay inheritance taxes on shares of foreign companies inherited from his father who is a foreigner not residing in UK knowing that there is no a tax treaty between the UK and the father's country. Many thanks...keep reading

Question: I have an inheritance tax question. Myself and my wife are both in our 80's. We have three children (both Sons). We provide financial assistance to each of them and want to ensure that the amounts we pay to them are exempt from inheritance tax. Our current annual income is 10 times the total "Gifts Out Of Income" to our 3 Sons. We provide financial help to each of them of around £5,000 per year. This includes the use of a credit card to pay for petrol and groceries, regular gifts of premium bonds and regulart cash transfers to a savings account. We want to make sure that we're OK to assume that these amounts will meet the criteria for the 'gifts out of income exemption' and that there will therefore be no inheritance tax charged?...keep reading

Tax Question: Is it possible to become non domiciled of the UK and maintain a home in the UK?...keep reading

Tax Question: When relying on a tiebreaker clause with a DTT, is it necessary to repeat the process each year?...keep reading

Tax Question: Can I set up an overseas company for the purpose of lending funds? Can I use these funds to either settle the existing mortgage or buy a new property for us to live? Is it also possible for that company to lend funds for BTL Property? What is the best jurisdiction to setup such a company and would you advise such shares to be bearer shares? Thanks,...keep reading

Tax Question: Is it possible to retain and carry forward tax losses accruing from a sole traders business when that business is incorporated? What impact if any is there on Incorporation relief provisions?...keep reading

Tax Question: The 7 year rule and gifting property to a limited company. What Taxes may the individual me liable for? And what is the best route to transfer property from the individual to a Ltd company?...keep reading

Tax Question: I am a Non Dom and pay tax on an arising basis. This tax year I made capital gains off shore and losses in the UK. May I offset one against the other? Thanks Louis...keep reading

Tax Question: If I become Non UK resident and live in France can I nevertheless make a Lifetime Property transfer of a UK property[ 7 years to clear ]? The French "gift " period is 15 years and is limited to 100000Euros....keep reading

Tax Question: When a UK Limited has capital increase or capital reduction, it would only take effect after it registers it with Companies House, right? Otherwise it would be invalid if the company shows such capital increase or decrease in it's accounts....keep reading

Tax Question: I understand it is relatively difficult to acquire a domicile of choice and thereby lose one's domicile of origin. Is it considered to be any easier to acquire a subsequent domicile of choice? For example, a UK domicile moves abroad and takes the steps necessary to establish a domicile of choice in the new country. Later, he/she moves to a third country, at which point his/her UK domicile is restored. Is the procedure for once again shedding the UK domicile and acquiring a domicile of choice in the third country any simpler/quicker than acquiring the original domicile of choice?...keep reading

Tax Question: What is the treatment for a property investment company that has Capital Allowances that go unused in the year of assessment? How can these be relieved?...keep reading

Tax Question: Can I gift cash to my children and then get them to loan it to me?...keep reading

Tax Question: I am not resident nor domiciled in the UK. I hold shares of UK companies in Jersey. Are these assets liable for UK Inheritance tax? Would putting these assets into an overseas company protect these assets from UK Inheritance Tax? Would the use of a Jersey trust assist in this case? Would the answers to these questions be different if I were not resident but was domiciled in the UK?...keep reading

Tax Question: Couple A have been non UK resident for 10 years. Their family home was a large country house and land in which their daughter and her family have continued to live. There is a derelict cottage on the property which couple A now intend to renovate and live in when they visit the UK. Couple A would like to gift the main house and land to their daughter and keep the cottage themselves. Can you advise the best way to achieve this....keep reading

Tax Question: if i gifted my business to my son in 2021 and my son continues in this business and i die in 2024. Does this gift (a) form a PET and (b) form part of my estate in 2024 for iht purposes?...keep reading

Tax Question: The basement of our house is a self-contained flat that we own on a separate lease. We are planning to take out a buy-to-let mortgage on the flat in order to raise money to convert it from a one bedroom to a two bedroom flat. (I've posted about this before.) In order to maximise the amount we can borrow against the flat, we plan to vary the lease to include the garden (it's currently restricted to the inside of the flat only, despite the fact that the flat has direct access onto the garden). Obviously in 'giving' the garden to the flat, we will increase the value of the flat and decrease the value of the house, which is our main residence. So our one concern is whether this could have capital gains tax implications. However, we plan to stay in this house long-term, and do not intend to sell the flat or the rest of the house. We figure that if we do have to sell up, we can always change the lease back again so that the main house gets a share in the garden (or gets the ...keep reading

Tax Question: I currently hold UK listed AIM shares and i'm currently resident in the UK. If I sell these shares whilst principally resident in Guernsey, would I pay any CGT on disposal of these shares?...keep reading

Tax Question Hello I'm trying to get information on the effect on Chinese withholding tax on interest paid to a foreign company. In particular, the effect of the Singapore and/or UK double tax treaties if paid to a company resident there? Thanks...keep reading

Tax Question: Dear wealthreport i have a company from which i do not take any salary or dividends. the earnings are retained by the company. if i wanted to take advantage of the childcare voucher scheme, could i take a salary for the amount of the childcare voucher - as a salary sacrifice - and still not take any other salary or dividend? thanks kind regards...keep reading

Tax Question: Hi Lady [A] has received through inheritance a 1/3 share of a freehold property [2/3 to other two siblings] The other 2 siblings wish to gift their shares to Lady A also. Lady A then intends to keep the property and eventually pass it down to her children in her will. No money is to be exchanged at any time. Could you kindly advise on the Inheritance tax and Capital gains tax implications in this scenario on each of the recipients of the gifted property ie Lady A and her siblings to Lady A's children. Thank you...keep reading

Tax Question: A DTA states "Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State." Does that mean that any Directors fees earned for board memberships in the country subject to the treaty are not taxable in the UK?...keep reading

I have a Uk Ltd company and the majority of my travel and subsistence expenses are reimbursed by my major client in Italy. What is the best way to show these reimbursements in order to avoid they add up to my total turnover and increase my tax? Thks...keep reading

Tax Question: Assuming property purchased with mortgage/loan from parents but after some years the parents decide to write the mortgage/loan off. What is the process to do this? 1) Can parents simply give a letter stating loan is written off? and what should the wording be? 2) Where should this letter be registered and within what period of time must it be registered? TIA...keep reading

Tax Question: Is it true that if a father (F) gifts the main residence £1m to a son (S) there would be zero CGT (due to PPR) and a PET for IHT which after 7 yrs will be zero, provided he also pay market rent for the accommodation (to avoid the reservation of benefit) until he ceases to use it eg. death or care home. If he dies before seven years does taper relief then apply?...keep reading

Tax Question: Hi What's the difference in tax calculations between transferring a property with no mortgage from a person's name to a limited company either a) as a gift with nil consideration vs b) as a normal transfer for market value consid...keep reading

Tax Question: Could you please help.. My mother who lives in England has proberty in England and in Italy, she has already made a will leaving her English property to my sisters and her Italian proterty to me as i live in Italy, we are having problems making a will for Italy, but thats not what i needed to know. I am worried about the inheritanza taxes..do l have to pay English taxes aswell as Italian taxes..and the same for my sisters do they pay taxes on the Italian inheritanze .? Thank you for any advice...keep reading

Tax Question: If I bought securities on margin, then are my capital gains reduced by that margin interest [i.e. are is the margin interest treated as a cost of trading the securities] or do I need to deduct the margin interest from the interest received in the year on my trading account?...keep reading

Tax Question: Hello, Is owning equity of a US-based company with a branch/permanent establishment in the UK considered to be foreign investment for UK tax purposes? Thanks!...keep reading

Tax Question: Is it possible to waive a proportion of a dividend. For example half the dividend that may become due in the following year on one share ? Is there a precedent in law for or against this ?...keep reading

Tax Question: My mother is 73 and Her assets are a flat worth 620k and cash of 190k. Father passed away around 35 years ago. We are 2 sisters what would be the best way forward to plan for IHT. Looking forward for your suggestions and tax implications....keep reading

Tax Question: I have a farm of about sixty acres which I have operated mainly with animals and arable for forty years and is excempt from IHT as agricultural property relief. As I am now approaching eighty years old and feeling the effects of those years of very long hours and hard work. I would like to branch more into holiday lets in shepherds huts and DIY horse livery. Would these operations effect the IHT status?...keep reading

Tax Question: Dear Sir./Madam. Can capital gains from the sale of digital currencies be claimed under the remittance tax basis, provided that a non-UK exchange was used for the sale and that the proceeds are kept in a non-UK bank account? The main question is about what qualifies as 'location of assets' in the case of digital currencies. Thank you....keep reading

Tax Question: Hi, I got a question about tax structure for SPV, company set up for investment purpose. If the company hold an investment property, and has a SIC code for property letting & management. The company then decides to invest into other assets such as shares. Assuming they are looking at purchasing shares and holding it for investment (not trading) Given that it's still an investment asset....does this change the structure of the company and how will tax be effected?...keep reading

Tax Question: I have 3 children. 2 of whom live in the family home and the 3rd lives abroad. They all own another rental property. I am looking sell 75% of the family home to them. Each will acquire 25% for £150k in separate transactions. How much stamp duty would each of them pay? Would they pay stamp duty based on £150k or £450k? Would those who live in the family home need to pay the additional rate?...keep reading

Tax Question: I'm writing a second edition of my book. If the book is published in the U.S., I have to pay a flat 30% withholding tax on all earnings. The publisher has asked if I would consider publishing via their UK office. As a non-resident British citizen, do you know how I would be taxed on a royalty advance and on any subsequent royalties that follow?...keep reading

Tax Question: For the count of 7of 9 years for the remittence charge, does a split year treatment count as one of the years of the 7 years. Specifically if it is the first year of the 7. Thanks....keep reading

Tax Question: I own (single owner) a UK ltd. company which owns property. Company is to be liquidated and the assets of the company, i.e. residential real estate (BTL), to be distributed in specie. Am I correct in assuming the company will have to pay the CGT on distribution, but I won't have to pay the SDLT, as assets distributed to me in specie by the liquidator?...keep reading

Tax Question: Is an IOM company liable to UK tax on its share of profits from a UK LLP?...keep reading

Tax Question: I am not UK tax resident. If I provide professional independent services FROM the UK to non-UK clients but the business has no fixed premises in the UK (just a virtual office address) will HMC tax my business profits? [I understand (I think) that under the DTT with my country of residence (Switzerland) I may be taxed if I offer services from a fixed base in Switzerland.¨]...keep reading

Tax Question: Hi Q. Off-shore Trust has made loan to Off-shore company who has in turn made loan to a UK resident company of which Mr A is a UK resident shareholder and beneficary of the off-shore trust. Settlor of the trust was non UK resident and non domicile. What would be the best way to give the above loan to the beneficary with least tax cost. Is there anything to watch out for re HMRC?...keep reading

Tax Question: Hi If a Singapore company receives dividends from a Russian company what would the withholding tax implications be please? It holds 40% of the Russian company.  Thanks  Jacz...keep reading

Tax Question: My father lives in New Zealand and has done so for the last 40 years, however he was in the UK, I live in the UK, would we have to pay IHT when we receive money from his NZ home....keep reading

Tax Question: My brother and I are shareholders and directors of a property, limited private company. It holds valuable property, mainly commercial, for long term investment. We are both over 65 years old and have always had good relations and we still do. He wants to retire and I want to carry on. He has 49% and I have 51% of shares. What do we do and how to minimise tax and legal complications? Could we- having obtained property valuations by an independent valuer-, divide up the properties in the same proportion by value as our share holdings, and then he would have his properties in a separate Company or limited Partnership and I have mine in a similar situation. Since there is no individual gain or loss in value to my brother or myself, there has been no disposals and so, hopefully, no CGT implications. Do you perhaps have a better solution?...keep reading

Tax Question: What is the most tax efficient way to buy a UK residential property for a UK minor?...keep reading

Tax Question: Hi, 1. The royalties are sold to a UK company by a Hong Kong company, with a deferred payment. The royalties are then leased to a Ukrainian company and the Ukrainian company makes regular payments in respect of the royalties to the UK company. The UK company uses funds so received to repay the Hong Kong company the deferred consideration outstanding on the royalties. Are there any restrictions which apply to the above in the UK? Does withholding tax apply to the payments which are made from the UK to Hong Kong? 2. Does any withholding tax apply in the UK if interest on a loan is paid from a company in Ukraine to a UK company and then paid on to a company in Hong Kong? 3. If dividends are declared from a Ukrainian company to a UK company and on to a Hong Kong company, does any withholding tax apply in the UK? 4. Is there a tax on dividends which are declared in Hong Kong in favor of a non Hong Kong resident shareholder? Many thanks...keep reading

Thanks for your answers and I have more questions after the arrows or comments after your answers >>> >>>>Home in the UK? What does a home in the UK mean exactly? I don't own any property. I do not have a rental contract in my name but I do have a place I can use to stay with my son, daughter and wife (she is only there some of the time) in Edinburgh. Is that a home? So is a 'home' mean owning a property? And I just have a 'place to live'? This is the sentence I am worried about: 'there is or was at least one period of 91 consecutive days when you had a home in the UK.' 1.You would certainly have a 3 year tie. >>>YES 2.You may well have a family tie >>>>YES 3.and an accommodation tie, depending on how long you visit them/stay in the UK. >>>>> YES: 'The individual will have an accommodation tie for a tax year if they have a place to live in the UK and: It is available to them for a continuous period of 91 days or more during that tax year, and they spend 1 or more nights there ...keep reading

Question: My older brother is fairly well off and has offered to buy some premium bonds in my name. How will this be treated for inheritance tax purposes. I know that premium bond winnings are free of income tax but what about inheritance tax? What is the position in the event of his death and also at the time of the gift to me?...keep reading

Tax Question: When looking at where assets are held for a EPT periodic charge calculation I am aware that for shares it is the registration of the shares that is important. If the UK shares are managed by an investment manager who is using an offshore nominee (rather than a trading company) account does this change where the assets are held....keep reading

Tax Question: Can you become UK tax resident WITHOUT meeting the current conditions for tax residency? For example, suppose as an "arriver" you only fulfill the single requirement of available accommodation and you never stay more than 100 days in the UK can you be "deemed" tax resident if you refer to yourself as UK resident for other purposes. And would it make any difference to the UK tax authorities if you were a "Tax Nomad"....keep reading

Question: I am a UK citizen and have lived here for over 7 years. Before that we lived in the US for over 20 years. I'm concerned about where my potential inheritance tax liabilities may lie (so I can the reduce it!). We have assets owned by us which are based in the US. This includes: - Bank accounts - US shares The income from the bank accounts is paid gross by the US and taxed in full in the UK. The US dividends though are subject to a 15% tax withholding in the U.S., but we then get a tax credit in the UK. What is the position for inheritance tax purposes under the Double Tax Treaty that exists between the U.S.A. and the UK?...keep reading

Tax Question: My wife is about to inherit some cash money and a share in property from her father in Jersey in the Channel Islands. This will be in the region of £500,000. Taxes will be paid on both aspects within Jersey but will she be liable for any inheritance tax in the UK...keep reading

Tax Question: One of my clients is a property development LLP (2 members).They bought a property for £210,000 to re-develop it into 7 apartments. the property still in their name and not the LLP company. They have already spent over £100,000 on the development. What are the advantages & disadvantages in transferring the property ownership to the LLP company. If they do make the transfer will they be able to claim the £210,000 and all the cost of the development from the company as a long-term loan. Are they entitle to any relief?...keep reading

Do you think that a gift of cash from an overseas (Jersey) bank account by a non UK domiciliary to UK beneficiaries would be exempt for UK inheritance tax purposes? If not would it be a PET? Note that this will be an electronic transfer of the cash (not a cheque). Does it make any difference?...keep reading

Tax Question: I am becoming a digital nomad and will be leaving the country before april this year. I have a UK company and would like to migrate that to malta for tax purposes. My company is a web application we sell on a subscription basis for thousands of customers worldwide. Our assets include our domains, custom software, customer base and brand. Regarding UK exit taxes, will there be CGT that I am personally liable for, or is it corporation tax due to asset sales? Or perhaps both? I was told by one person that the UK does not allow treaty migration so it would be asset sales (which I guess is corp tax.) Then another person told me that the UK absolutely did support treaty migration so I'm guessing that would be a share sale which is subject to CGT not UK corp tax? Hoping you can give me a definitive answer on this!...keep reading

Tax Question: Hi, Love the site! Finding it really useful. I am currently uk resident (and domiciled) but going to move to Malta next year with the view to being non uk resident and plan on being away from uk for more than 5 years. I am currently working for a uk company (on contract) via a limited company. There is a distinct possibility that when I tell them I'm leaving they will offer to let me work remotely. If not then I would not be working in Malta and living off my own funds. I understand the non residence test rules and would deliberately spend less than 16 days in uk for each of next 3 years to ensure I am non uk resident and would not return to uk (permanently) for at least 5 years (if at all). - If I work from malta (software development via remote VPN connection to client pcs) via my uk limited co, am I correct in understanding that I would pay uk corporation tax on the company profits but no other income tax in uk if I do not draw a salary? - my understanding is tha...keep reading

Tax Question: UK domiciled resident and sole shareholder of non-UK (but EU based) holding company. If UK resident sets up a UK ltd, can it be fully owned and financed by the EU holding company? Can any dividends of UK ltd post UK corporation tax be paid back to holding company? Are there any personal tax liabilities for UK resident shareholder of EU holding if no dividends are paid from the holding?...keep reading

Tax Question: Hi what tax is payable by a uk resident, who receives income from a non resident discretionary trust...keep reading

Tax Question: I got a job transfer to London from the midlands over ten years ago. I bought a flat jointly with my husband which was second home. I stayed in the flat for the entire time for the past ten years and my husband stayed there for about two years. He then moved back to our first home which is jointly owned. We are now selling the flat. Does principal private residence relief is applicable in this case? If applicable, what would be the duration of PPR for myself and for my husband....keep reading

Tax Question: In a small UK group of companies where the non trading Holding company is a company limited by guarantee with 3 member/directors, which owns 100% of a trading company with the same 3 people as directors, are there any circumstances in which the Holding company can distribute funds to the Members/Guarantors out of the retained profits of the trading company by way of a 'dividend' in the Holding company rather than as employment income in the trading company? Or any other way to get income out other than via salary? And/or is it possible for the Holding company to 'buy back' the beneficial interest of one of the Members for say a third of the company value and if so would that member get Entrepreneur relief as they have been a member for more than 2 years?...keep reading

Tax Question: I have a uk trading Ltd company with goodwill valued at £1.2m and tangible assets of 400k I wish to transfer the business to a newly formed UK Ltd company and retire from the business. The goodwill was purchased on incorporation in 2008 at a cost of £1m and CGT was paid by the vendor, ie me. I directly own all shares in both companies.If I transfer the goodwill direct to the new company will there be a taxable gain of £200k, or is this transfer exempt? If there is, can I avoid this by transferring shares in the new company from me to the old company befor transferring the assets? or by putting both comany's shares into a holding company?...keep reading

Tax Question: Non Resident CGT. Non resident coming back to UK. Purchased / acquire shares whilst non resident in EU country. If sells them whilst non resident then still not UK CGT event even if they come back to UK . I think the anti avoidance rules on sale of assets whilst "temporarily" non resident was in respect of pre - existing Uk assets from before you were non resident rather than assets acquired whilst non resident. So if pregnant with a gain best to sell them whilst non resident rather than wait and end up UK CGT on all. Is this correct? tks...keep reading

Tax Question: I understand that Canada does not have any form of IHT. However, should a resident of Canada dies certain assets are deemed to have been sold prior to death. If the deceased is a UK domicilary who would also have to consider such assets in the UK, do HMRC allow any deduction against the possible UK IHT liability to take into account any Canadian tax paid? Many thanks...keep reading

Tax Question: Hello, I am looking to setup a new business venture selling websites to small business in UK and USA I am a UK Citizen and resident and will want to work from Thailand have the following questions; 1. should i trade as a sole trader then switch to a UK Company and file Non Residence? 2. Should I just set up a offshore company and simply trade offshore? 3. Would it be a good idea to have freelance sales people in the UK? Please give me your thoughts thanks...keep reading

Tax Question: 1) Can you claim business property relief for inheritance tax purpose if your company runs a hotel business?it says land and buildings are excluded but hotel is a business....keep reading

Tax Question: Hello, my parents are looking at re doing their wills to save on inheritance tax. For the past 5 years i have been living in their home, covering my own expenses. am i correct in thinking that if they leave me this property in which we all live in their wills that it will be inheritance tax free? if not what will be the most tax efficient way of arranging my inheritance, as if the tax is too great i will have to move out anyway....keep reading

Tax Question: Good morning, Could you please advise? A person sells a property in June 2024,pays the CGT as requested on the gain. Say the CGT rate changes to a higher rate in 2024/25 then may there be more tax to be paid? Thank you...keep reading

Tax Question: I would like to ask about the idea of someone buying lots of shares in the stock market and holding them for a long time.  If these shares then double or more in price and would therefore result in a very large capital gain, would it be possible for the owner of the shares to move abroad to e.g., Dubai where there is no tax payable, and then sell the shares, and remain there for 5 years to become non resident before coming back to the UK?  Would that work in terms of not having to pay any capital gains tax on the gains?...keep reading

Tax Question: My company is cash rich I am the majority shareholder and I wish to purchase the other shareholders shares Whats the best way to do this?...keep reading

Tax Question: My parents are UK doms and have a discretionary trust in the UK. Can this trust be moved to an offshore location? If so, will doing so provide any inheritance tax advantages? Thanks....keep reading

Question: A mother X gifts her daughter Y her house. The daughter moves in with her even though the Y has another house (her main residence). X becomes disabled. X pays all the utility bills. Y pays the other expenses. Y owns the house outright. They live together for more than 15 years. X dies. Does the whole house or half the house belong to Y estate?...keep reading

Tax Question: We are going to sell our house and we are considering selling the garden at the side of us as a building plot. The entire garden [including that at the side]is less than half an acre will we have to pay CGT on the side garden land?...keep reading

Tax Question: H & W own a 'dormant' holding company in equal shares, this holding company owns a 25% share in a property investment company. Is there a tax efficient way of collapsing (removing) the holding company such that H & W own 25% share directly in the property investment company?...keep reading

Tax Question: Hi, Is there a minimum period of time a donor of a business must survive for in order for the recipient to be free from any tax liability? thanks...keep reading

Tax Question: For the following part time business of (a) mini cab business (b)lending short term finance at market rates to his friends and associates. (c) rare stamp dealing. Are these iht qualifying assets for BPR?...keep reading

Tax Question: The 7 year rule and gifting property to a limited company. What Taxes may the individual me liable for? And what is the best route to transfer property from the individual to a Ltd company?...keep reading

Tax Question: I am a Non Dom and pay tax on an arising basis. This tax year I made capital gains off shore and losses in the UK. May I offset one against the other? Thanks Louis...keep reading

Tax Question: If I become Non UK resident and live in France can I nevertheless make a Lifetime Property transfer of a UK property[ 7 years to clear ]? The French "gift " period is 15 years and is limited to 100000Euros....keep reading

Tax Question: Can I gift cash to my children and then get them to loan it to me?...keep reading

Tax Question: Couple A have been non UK resident for 10 years. Their family home was a large country house and land in which their daughter and her family have continued to live. There is a derelict cottage on the property which couple A now intend to renovate and live in when they visit the UK. Couple A would like to gift the main house and land to their daughter and keep the cottage themselves. Can you advise the best way to achieve this....keep reading

Tax Question: The basement of our house is a self-contained flat that we own on a separate lease. We are planning to take out a buy-to-let mortgage on the flat in order to raise money to convert it from a one bedroom to a two bedroom flat. (I've posted about this before.) In order to maximise the amount we can borrow against the flat, we plan to vary the lease to include the garden (it's currently restricted to the inside of the flat only, despite the fact that the flat has direct access onto the garden). Obviously in 'giving' the garden to the flat, we will increase the value of the flat and decrease the value of the house, which is our main residence. So our one concern is whether this could have capital gains tax implications. However, we plan to stay in this house long-term, and do not intend to sell the flat or the rest of the house. We figure that if we do have to sell up, we can always change the lease back again so that the main house gets a share in the garden (or gets the ...keep reading

Tax Question: I currently hold UK listed AIM shares and i'm currently resident in the UK. If I sell these shares whilst principally resident in Guernsey, would I pay any CGT on disposal of these shares?...keep reading

Tax Question: Hi Lady [A] has received through inheritance a 1/3 share of a freehold property [2/3 to other two siblings] The other 2 siblings wish to gift their shares to Lady A also. Lady A then intends to keep the property and eventually pass it down to her children in her will. No money is to be exchanged at any time. Could you kindly advise on the Inheritance tax and Capital gains tax implications in this scenario on each of the recipients of the gifted property ie Lady A and her siblings to Lady A's children. Thank you...keep reading

Tax Question: Is it true that if a father (F) gifts the main residence £1m to a son (S) there would be zero CGT (due to PPR) and a PET for IHT which after 7 yrs will be zero, provided he also pay market rent for the accommodation (to avoid the reservation of benefit) until he ceases to use it eg. death or care home. If he dies before seven years does taper relief then apply?...keep reading

Tax Question: Hello, Is owning equity of a US-based company with a branch/permanent establishment in the UK considered to be foreign investment for UK tax purposes? Thanks!...keep reading

Tax Question: I have 3 children. 2 of whom live in the family home and the 3rd lives abroad. They all own another rental property. I am looking sell 75% of the family home to them. Each will acquire 25% for £150k in separate transactions. How much stamp duty would each of them pay? Would they pay stamp duty based on £150k or £450k? Would those who live in the family home need to pay the additional rate?...keep reading

Tax Question: I own (single owner) a UK ltd. company which owns property. Company is to be liquidated and the assets of the company, i.e. residential real estate (BTL), to be distributed in specie. Am I correct in assuming the company will have to pay the CGT on distribution, but I won't have to pay the SDLT, as assets distributed to me in specie by the liquidator?...keep reading

Tax Question: I got a job transfer to London from the midlands over ten years ago. I bought a flat jointly with my husband which was second home. I stayed in the flat for the entire time for the past ten years and my husband stayed there for about two years. He then moved back to our first home which is jointly owned. We are now selling the flat. Does principal private residence relief is applicable in this case? If applicable, what would be the duration of PPR for myself and for my husband....keep reading

Tax Question: I have a uk trading Ltd company with goodwill valued at £1.2m and tangible assets of 400k I wish to transfer the business to a newly formed UK Ltd company and retire from the business. The goodwill was purchased on incorporation in 2008 at a cost of £1m and CGT was paid by the vendor, ie me. I directly own all shares in both companies.If I transfer the goodwill direct to the new company will there be a taxable gain of £200k, or is this transfer exempt? If there is, can I avoid this by transferring shares in the new company from me to the old company befor transferring the assets? or by putting both comany's shares into a holding company?...keep reading

Tax Question: Non Resident CGT. Non resident coming back to UK. Purchased / acquire shares whilst non resident in EU country. If sells them whilst non resident then still not UK CGT event even if they come back to UK . I think the anti avoidance rules on sale of assets whilst "temporarily" non resident was in respect of pre - existing Uk assets from before you were non resident rather than assets acquired whilst non resident. So if pregnant with a gain best to sell them whilst non resident rather than wait and end up UK CGT on all. Is this correct? tks...keep reading

Tax Question: If a loan is made to a company by a non resident and the company goes bust can that loan be offset against UK tax on other earnings ?...keep reading

Tax Question: Hi I am selling the assets of my business for £1,000,000. The business is an e-commerce business, so this will be the goodwill. Obviously this will trigger corporation tax for £190,000. Ideally I wanted to roll this over and purchase commercial property but I am told I can no longer do this. Do I have any options at all? Not to pay, or to delay the payment, preferably roll over the gains. Thanks Kane...keep reading

Tax Question: Good morning, my limited company in U.K.will sell shares it detains (100 %) of a foreign company trading abroad. Shares have been held (100%) for 5 consecutive years by my UK limited co, and the the company being sold have been trading continuously for years before disposal. The company being sold will continue trading normally after the sale. Do you confirm that the holding company, selling shares can be exempt of CGT on the amount of transaction. With anticipated thanks Raphael...keep reading

Tax Question: Hi - a client and his wife sold their main residence in Lancashire in June 2022 and now own no other property. They are currently staying in a rented property. They intend to buy a new main residence in Devon and also a "bolt hole" property in Lancashire to stay when they come back to visit family. For practical reasons the Lancashire property will be purchased first. Am I right in thinking that the purchase of the Lancashire property will not be subject to the additional 3% SDLT charge as it will be the only property owned at that time and neither will the purchase of the Devon property, which will be completed in early 2023, as it will be a replacement for their previous main residence? Thanks...keep reading

Question: Is it possible to gift a portion of a property to somebody. If so what is the position for stamp duty and capital gains also how would one record the gift to ensure the timing of the gift for the 7 year IHT rule, Thanks...keep reading

Tax Question: When is the planned stamp duty waiver for property planned to be announced and when will it be effective from and what will be the amounts....keep reading

Question: Property investment co valued at £2m, client(mother)owns 30shares , two daughters own 25shares each. Client wishes to transfer say 20 shares to daughters. It has been suggested that the issue of deferred shares to the daughters with rights only to transfer into ordinary shares at a future date can achieve the transfer of value without IHT/CGT consequences. IS this possible and how in practice does it work....keep reading

Hi I am UK resident and a UK national. I have over 500,000 GBP invested in various crypto assets, including NFT's. Some of these are showing significant losses. Can I get any tax relief for these losses?...keep reading

Tax Question 1 : If you leave rental income overseas do you have to pay income tax in the UK Tax Question 2: Is there anyway to use your annual CGT allowance to offset rental income?...keep reading

Tax Question: Dear Wealth Protection Report With regards to contracts for difference (cfds) i would like to clarify two things: 1. with regards to the "dividends" they pay (they call the amount "dividend adjustment") are these treated the same as dividends from shares by the inland revenue. or is the amount given not technically a dividend and treated as a capital gain by the inland revenue? 2. is the interest paid on cfds an allowable expense, and if so, is it allowable against the "dividends" or against any capital gains tax? thanks kind regards...keep reading

Tax Question: Hi, if I sell the shares in my UK property investment company to my daughters but no money changes hands, instead a loan agreement is put in place where my daughters have to pay interest on the outstanding loan until it is repaid. Would this transaction trigger a cgt liability for me immediately or at the point the loan was paid off?...keep reading

Tax Question: For UK resident/non dom taxed on an arising basis can you please clarify the treatment of profit realised on disposal of - UK retail bonds, held in the UK - Corporate bonds denominated in Euro, held offshore with respect to Capital Gain Tax. Can you also please clarify if losses on disposal can be offset against profit. For the corporate bonds denominated in Euro what would be the difference in case the remittance basis is chosen. Thanks and regards...keep reading

Tax Question: Myself and my partner are looking to purchase a property which has outline planning permission for two dwellings on part of the garden at the back. (The garden size is below the 1/2 hectare threshold) The purchase price set looks to be based on each plot being worth approx £200,000 and the main house approx £500,000 - £600,000. My question is around the sale of the plots after we complete the purchase. Our only method of securing the main house is to sell the 2 plots to fund the purchase. Can you tell me if CGT would be payable on the sale of the 2 plots. Our own thoughts are the capital gain would be off-set by the devaluing or capital loss on the main property....keep reading

Tax Question: If I buy a commercial property in a company, how can my son , get ownership of the company when he is 18 years old .. He will have a personal tax allowance and be on the lower tax bracket so would be benifical for him to have all the income coming to him from a tax point of view. Shall I buy it now in my own name or in company name for it to be transferred to him when he is 18 years old ( currently 8 years old) Thanks Kapil...keep reading

Tax Question: An offshore company is beneficially owned by UK residents. It invests in UK companies . Is the best means of protecting the beneficial owners from tax on income and CGT a trust? Is there any point in making the trust offshore if the beneficial owners are UK resident? If the offshore company is a subsidiary finance company as it only finances UK operations can the UK company be the shareholder of the offshore subsidiary? If the shares of the parent company are held in a trust which is UK based are there tax implications on the shareholder ie the trust if no dividends paid and shares simply held?...keep reading

Tax Question: client has a residential property in portugal which will show a profit on a proposed sale. that will , he says , be subject to a portuguese capital gain s tax. will that tax be deducted from the eventual uk capital gains tax liability? or is he in effect doubled taxed on the gain ? jb...keep reading

Question: I am nearing retiring age and have an established licensed UK company (trading for 35 years). There is a Guernsey company interested in continuing the business but basing the comany in the Channel Islands.I can sell (share exchange) my UK company to the offshore Guernsey company & retain 50% of the shareholding in both companies to give me a good annual dividend. Can I also act on a consultancy basis taking and declaring an income from Guernsey....keep reading

Tax Question: With investment and interest income, what determines if the income is 'UK source income' -- is it whether or not the tax payer is resident in the UK, or whether the investment platform is based in the UK? What determines 'UK source income' for the following: dividend income from investments (stocks, funds, ETFs), capital gains on sale of securities investments, interest from bank accounts, interest from P2P (peer to peer lending platforms)? Is the criteria for determining UK source income the same if UK resident or non-UK resident for tax?...keep reading

Tax Question: I am UK non resident with a holding in an offshore fund. If I were to sell the holding at NAV1 whilst non UK res, then become UK resident and purchase the holding at NAV2, would this be effective at re-establishing the base cost for UK taxation purposes at NAV2? Are there any considerations, for example in terms of minimum time period between disposal and acquisition, for this to be effective? Thanks [Related question answer mentioning DTA does not help in this case as the DTA does not seem to cover this]...keep reading

Tax Question: Two questions about the 30 day GCT anti-avoidance 'bed and breakfast' rules for UK tax residents. 1. The 30 day rule is normally understood in the context of selling and buying and setting a new cost base for securities (stocks and funds), but does the same 30 day rule apply to other assets such as selling and then repurchasing the same crypto-currency? 2. The 30 day rule is normally discussed in the context of selling an asset to crystallise gains to use up the annual CGT tax free allowance, but would the 30 day rule also apply if assets are sold to crystallize a tax loss to off-set and reduce tax on other capital gains? Thank you....keep reading

Tax Question: You return to the UK after 10 years overseas as a non-UK resident for tax. While non-resident you had investment funds, ETFs, and cryptocurrencies which accumulated gains. Directly before returning to the UK you spent a year in a country with no CGT during which time you sold investments and repurchased the same investments which set a new cost base. All the investment assets were fungible so the same was purchased as was sold. Is the new cost base allowable for calculating any future CGT gains if later sold when UK tax resident? 2. Does the UK 30 day GCT anti-avoidance rule apply to the sales and purchases that occurred prior to being UK tax resident? 3. The 30 day rule is usually quoted in the context of 'securities' and financial products, does it also apply to other types of assets such as cryptocurrencies?...keep reading

Tax Question: I am a member of a LLP that owns an investment property in Australia. Both LLP members are UK citizens and UK resident. The Australian Taxation Office views a UK LLP as a corporation, so the LLP pays Australian corporation tax on the rental income from the property. Foreign Tax Credit is claimed against the Australian tax so that the UK income tax is offset against it according to the double tax treaty. I would like to confirm that: 1. The members of the LLP are entitled to Foreign Tax Credit. 2. The fact that the LLP is taxed as a corporation doesn't matter. (This was our understanding based on an HMRC Tax Bulletin article but would like to confirm). 3. If we were to sell the property, Foreign Tax Credit could also be claimed against any UK CGT. https://www.gov.uk/hmrc-internal-manuals/partnership-manual/pm131540 Finally, are there any mitigation strategies against both UK and Australian CGT if we were to sell the property? Many thanks, Ian...keep reading

Tax Question: Re: ISA/Capital gains tax Uk I bought shares on the LSE in my ISA account at a share price of x. Later, the company's shares were delisted from the LSE and my broker moved the shares out of my ISA to a non-Isa international share trading account. On the last trading date on the LSE the share price was Y. one year later I sold the shares. Question: Do I use price x or price Y as the cost-price for calculating my taxable capital gain/loss. thanks H.S....keep reading

Tax Question: I acquired the freehold of a property with 4 flats, all of which I own, about 20 years ago. The leases have run down to 61 years. I have transferred the freehold into mine and my partners name with a view to extending the leases to 125 years (little change to the existing leases, just term and peppercorn ground rent). Is there a Capital Gains Liability to factor in? Neil...keep reading

Tax Question: I have a holding in an offshore fund [non reporting] and am currently non UK resident. Gains within this fund are taxed as income in my current tax residence yearly, whether or not this income is distributed from the fund. I may become UK resident in the future. My understanding from the UK side is that income/gains within the fund are all taxed as income but only when distributions actually occur. Therefore am I potentially exposed to tax twice on income within the fund, once in my current residence on undistributed income and secondly in the UK were a distribution of this income to occur after gaining UK tax residence? Is their any mitigation or strategies in place for minimising this effect, such as a base cost uplift at time of change of residence? Regards...keep reading

Tax Question: I bought shares in a company and a week later i sold them for less, I still got the shares now but theyr value has gone down. Can I claim tax back on the loss i made ? What if i keep them for 2-3 years and then sell them for less then i got them can i still claim tax back then, or is there a time limit on how far back you can claim? If i buy and sell the shares from the company "X", making a loss, and buy shares in company "Z" , can i claim tax back on loss made on company "X" ?...keep reading

Tax Question: Hi, A US individual who is UK resident has sold her US property and incurred New York State taxation on the gain arising. Would this tax be offsetable against UK tax exposure or would this need to be federal tax [of which I believe none has been paid]...keep reading

Tax Question: I have established an offshore company which will be used for trading. Until it becomes significantly profitable [say in 6 months], it will be managed and governed in the UK, although it will have no UK assets and no UK staff. After it becomes significantly profitable, the management and governance will move offshore. Until it moves offshore, I expect that it will be treated as a UK company and be subject to UK corporate tax. My concern is the taxation liability that may arise on the transfer offshore. The company won't have any significant assets other than its trading history. The trades are all very short term and there will be no goodwill. Will there be any capital gains tax and if so on what will it be calculated?...keep reading

Tax Question: Hi We recently just bought a house and the house is not in the condition to let out for tenant. There is no kitchen but has the sink, toilet in bad condition, old carpet and old boiler etc. So we will need to renovate the whole house basically with all the new items, may I know is the renovation cost is deductible from the rental income or will it classify as a capital expenditure? Please could you advise what cost that allow to deduct from the rental income? Thanks...keep reading

Tax Question: Hello, in your answer to "Transfer of property to company and tax", you mentioned 1) "The main difference [between Nil value and market value transfer] will be in the accounting treatment of the property in company". Could you explain this further please 2) "Also the property could be transferred with the proceeds outstanding so that the value of the consideration can then be extracted free of tax in the future." I assume you are saying to treat it a a loan from the directors to the company. Can this be done in both cases, Nil transfer and market value transfer?...keep reading

Tax Question: Hi, my parents have a BTL house that consists of several contained flats. If they were to sell one flat, what would be the correct way to calculate CGT? Would you need a purchase price and current market value for each flat or can this be worked out from the cost price of the house and the current market value of the house? Secondly, my parents have another buy to let property/house. When they bought it they lived in one flat - say bottom flat and rented the top flat. When they moved out, they split the bottom flat into two flats and rented them both out. What would be the correct way to apportion the partial principle reliefs and lettings relief if they were to dispose of one flat and put another one flat in a trust for example? Again, would need individual purchase/current market values? Thanks...keep reading

Tax Question: Good morning, Is my understanding correct that payments to a UK resident from an offshore trust matched with trust gains means that such payments will use up the accumulated gains in the trust. That is, only after all gains have been distributed would capital as such be reduced upon further distributions? Thank you and regards....keep reading

Tax Question: Hi, Co A has been trading successfully for many years and includes a freehold factory which is used for the trade. There are 3 shareholders. Now, the plan is to hive-off the business into a newco which will be a wholly owned subsdiary. Co A will then become a property holding company (ie the factory) possibly seeking new investment opportunities. This measure will ring-fence the property from any potential future claim by creditors. Firstly, am I correct in assuming that there should be no CGT implications of the above hive-off by virtue of the share-for-share exchange provisions? Secondly, as long as Co A only holds the factory freehold (ie any other investments are done via a 3rd Co) and this is rented to newco for its trade then is the BPR preserved for the shareholders - as it is a trading group? Thanks...keep reading

Tax Question: Dear Sir, I have purchased a new home which will be my permanent resident address and I am thinking whether or not convenient to rent out or sell my old private residence, considering that current market prices embed a significant potential capital gain. If the property is sold within 18 months, thanks to principal private residence relief, I would not in fact pay any capital gain tax. If I rent it out, with the current rules, I will have to potentially pay capital gain tax at a future date. Assuming that I expect no more significant capital appreciation for that home, it would be convenient to sell it now and realise the capital gain. In fact, I assume that the 40,000 relief available if I start the rental business won't make up for the additional taxes to be paid on a future disposal. My question is whether it is possible to get independent valuations for my previous main private residence from multiple agents and crystallize the value of the home as of today (based...keep reading

Tax Question: Consider a res non-dom taxed on arising basis who has (accidentally) invested overseas through a Swiss bank in UK shares using unremitted untaxed income/gains from earlier years when he was on remittance basis. What are the tax implications of this? Is there a risk the investment will be deemed a remittance resulting in a tax liability? What actions should be taken with a view to eliminating/minimizing this risk? Can he remit to the UK the dividend which will be taxed on arising basis? Thanks...keep reading

Tax Question: Hello, I'd like to understand the tax treatment of forward currency contracts. Assume I sell forward Eur 100'000 against the £ and at maturity I receive £70'000 at the forward rate of .70. If now I sell the £ back at the spot rate of .80 at maturity, I will receive Eur 87'500 for the £70'000, or a loss of Eur 12'500. If on the other hand the spot rate is .60 I will receive Eur 116'667 or a gain of Eur 16'667. What is the tax treatment under each scenario? I assume that as of 2012, gains and losses on normal withdrawals from foreign currency bank accounts are not subject to capital gains tax. Thank you...keep reading

Tax Question: For nearly forty years, my wife & I in partnership have traded as funeral directors and wholesalers of funeral requisites, but in 2011 we branched out into land development, buying approximately 2 acres of land, which we converted into 11 house plots. All services and roads were provided, the plots of land were sold off individually and the appropriate income tax paid. In January 2019 due to our advancing years, the funeral undertaking division of the business was closed down and all the appropriate assets and stock were sold off without claiming entrepreneur's relief (ER). At that time 3 house plots remained in the business as 'stock in trade', but due to the recession, no further plots were sold between January 2019 and April 2020, when it was decided to cease trading. The partnership received no income from sales in that financial year thus becoming a liability. The remaining assets of the business including the three house plots were distributed to the partn...keep reading

Tax Question: Using the remittance basis for UK Tax, if I sell my property in Australia remit the net proceeds to the UK (sale price - mortgage - associated sales costs) and then use those proceeds to  buy a property in the UK - will that transfer be subject to remittance tax? Second question - similar scenario but the sale of property in Australia yields a net loss, can I use that loss to offset remittance basis tax on any money remitted into the UK in the same tax year (where that money comes from offshore income)....keep reading

Tax Question: Dear Sir I have bought property and lived in it for 2 years as my main residence it was converted into two flats which I then regularised with council if I want to sell them will I get PPR relief and how will this be applied....keep reading

Tax Question: I have a question regarding the treatment of sale and purchase of shares within 30 days. --Assume a total holding of 10 000 XYZ shares at avg cost of $50/share or GBP 25 at avg $/GBP rate of .500. --Assume 1000 XYZ shares are sold at $100/share or GBP70 at $/GBP rate of .700, with sales proceeds of $100K or GBP70K. --Within 30 days, 1250 XYZ shares are bought with the $100K proceeds at the lower price of $80/share or GBP48 at a $/GBP rate of 0.600, resulting in acquisition cost of GBP60K. --If the 30 day rule did not apply, there would be a gain of (70-25)*1000=GBP45K on the sale. The remaining 10250 shares would be carried at an avg cost of GBP27.80/per share (9000*25 1250*48)/10250=27.80 My question is what would be the treatment under the 30-day rule. A) Is there no capital gain for tax purposes because the cost for the 1000 shares sold is assumed to be the same as the sales value in GBP and B) Is the avg cost in GBP of the remaining 10250 shares still 27.80? Thank...keep reading

Tax Question: An individual is resident in the UK under domestic legislation but resident in Spain under the double tax treaty. If they sell UK shares, are they considered non UK resident per the treaty and therefore not subject to capital gains tax?...keep reading

Tax Question: Dear Sir, A discretionary offshore trust was established 3 years ago, from an unrelated settlor for my benefit (and for the benefit of my children). Since inception, the investments of the trust never made any capital gain or income, but actually the investment strategy of the trustee made a loss (also including running costs and legal fees). As a potential beneficiary, could I suggest a distribution of capital? Will be this distribution taxable? As I am a UK resident non domiciled, I'd be liable to pay a 30,000 GBP non remittance charge (in case opting for the NRB), but I am wondering whether this distribution of capital would just be free of tax. Thanks....keep reading

Tax Question: A property developer LLP with two members. One of the members wishes to leave the LLP. My understanding is the LLP has to be dissolved if stayed under the minimum members requirements for more than six months. The other member wishes to stay running the business by forming a normal limited company by himself. My question is what will happen to the current assets of the LLP? Can it be transferred to the other member? Currently, the LLP is taking one of their contractors to court, can the LLP be dissolved while the case still going?...keep reading

Tax Question: A - UK resident (non-UK domiciled yet) B - UK domiciled Offshore LLC and Trust have no such taxes on overseas income UK properties and tangible overseas assets are owned by offshore LLC; LLC's director - A LLC's PSC - offshore Trust Offshore Trust's settlor and trustee - A Offshore Trust's beneficiaries - A and B A and B are not receiving any income(cash in) from LLC and Trust....keep reading

Tax Question: Hello, I want to take my name completely off from property deeds and companies houses using offshore trust and LLC. Is there a way to do it and how?...keep reading

Question: I have read your article on share valuation. Is it necessary to get a share valuation for every sale of shares in unquoted companies. If not when would be the occasions when it is advisable. What are the situations when the Inland Revenue would challenge sales valuations....keep reading

Question 3: Would a possibility to preserve pure capital be to purchase non UK domiciled bonds in GBP (above 100) in portfolio 1 and do a currency hedge in portfolio 3 if no exposure to GBP is wanted? No exposure to GBP is wanted. Therefore, an amount corresponding to the amount of purchased bonds/liquidity held in GBP will be hedged against USD. GBP will be sold forward against USD, let say with a duration of 3 months, and simply being rolled over at maturity. Would this work?...keep reading

Tax Question: Remitting capital gains on shares that were funded by untaxed foreign income. I wish to sell some shares from a share portfolio account and transfer the sale proceeds to the UK and apply the remittance basis tax on this. The share portfolio was opened in Australia before I became resident. Since becoming resident the share account has received dividends as well as the proceeds of sale of shares. I have actively bought/sold during this time. I have claimed the remittance basis during this time; therefore these capital gains events and foreign income received have not been subject to UK tax (they have not been brought onshore). I am wondering that if I now sell shares and remit the proceeds to the UK, where those shares have been funded by foreign income previously shielded by claiming the remittance basis if HMRC would view the share proceeds as having an untaxed foreign income component that would need to be taxed alongside the overall CGT? As an example, lets say I b...keep reading

Tax Question: I have several shares in a uk startup business. After several false starts it would seem that an IPO will take place in the UK next year and the value of the shares should increase at least tenfold. Q. Can I protect these shares in an offshore trust or company until i decide how and when to invest the proceeds....keep reading

Tax Question: Property in joint names, how is the CGT allowance recorded for both parties as wife does not submit a tax return...keep reading

Tax Question: I have recently separated from my wife and I am currently living in separate premises. Please could you advise of circumstances in which Principle Private Residence relief could be allocated. Is it the case that we can only have one set of PPR relief or could we each have separate PPR relief? I would be grateful for your advice....keep reading

Tax Question: Do I have to pay some of the capital gains tax on a property that is not being sold, but that is being used as part of the assets in a divorce case - the property belongs to my soon to be ex - he is claiming that the proceeds from the house sale are not enough to buy a house ( they are ) so he wants more so he does not have to sell the rental property which would be liable to capital gains if it was sold....keep reading

Tax Question: Assume a company has a business of property letting, property development and some land sales, has some undeveloped land held in fixed assets for many years which it now intends to sell to a developer and there is an unascertainable overage payment of consideration. If the land is a capital asset and not held as trading stock: 1. A capital gain will arise based on the fixed sum received for the land and the value of the right to receive the overage payment? 2. If the fixed sum element of the sale proceeds is receivable in two instalments with the first on sale and the second upon the sale of the last house by the developer is the second instalment all taxable upfront irrespective of the delay before receipt? 3. The actual overage payments when received will then be taxable as a chose in action at that time with a base cost equal to the value of the right taxed upfront? If land appropriated from fixed asset to trading stock: 1. Can the company ...keep reading

Tax Question:  I plan to remit into the UK and have the remittance basis applied to a portfolio of shares that I will sell down completely and transfer to the UK. I understand the capital gain portion of this will be subject to CGT under the remittance basis, and the return of capital will not be subject to remittance basis tax - the capital put into the share portfolio was done before I became migrated and become resident in the UK. My first question is; will HMRC consider the value of the portfolio on the day I arrived in the UK or the original cost of the portfolio when calculating capital gain? Note this is a closed account, no money has come in or come out since I migrated to the UK. Shares have been sold with proceeds used to buy more shares, dividends received have been used to buy more shares, therefore all accrued gains have been reinvested within this one account. My second question is that if the entire fund is sold down and closed, will there be a 'net' capital gain ca...keep reading

Tax Question: Hi, wife has apartment A and husband apartment B. They get married and buy a property together in 2017. Each party keeps their individual apartments. Do they pay capital gains tax when they sell their apartments. I just read that they have to pay any tax for any gains only after 2015. Thank you....keep reading

Tax Question: Thanks for your response on remitting income from capital gains and having remittance tax applied to that. In order to complete the question let me add full detail. I bought two investment properties in Australia 2014 for 1M - I borrowed 700K and used 300K cash as deposit. The loan is interest only and stands today at 700K I moved to the UK in 2017 and became non-dom resident. At that point the properties were valued at 1.1M I am considering selling them now and using the return of capital to purchase in the UK. Assuming they are valued at 1.2M, once fees were paid and the loan paid out I would be left with around 450K. First question - when evaluating the capital gain would I base it on the value of the property when orignally purchased or would I value the property on the day I became resident in the UK? Assuming the former, lets say the capital gain came to 100K (100K for stamp duty, land tax, broker fees). If I then remitted that 450K to the Uk would I pay remit...keep reading

Tax Question: Hello My clients...a couple and their daughter own a second home(BTL) jointly.  Parents want to transfer their share to their daughter.  There is a mortgage of just under 400000 on the property and the property is worth 1.2m Please advise how much stamp duty and capital gains tax is payable on transfer of equity?...keep reading

Tax Question: Capital Gains Tax questionmyself and my wife have been UK non resident for more than 10 years.we want to gift our UK house, which was our main residence to our daughter.will Capital Gai...keep reading

Tax Question: Simply, I have been resident in the UK for more than the 3 preceding tax years, but am thinking of becoming a "leaver", from 6/4/19, as I will have a sizeable cgt bill in 19/20. I will have 2 ties, an accommodation tie, and a 90 day tie. (I do not work, have no family tie, and will spend more time in my home abroad than in the UK). I am going to the Far East this weekend to, initially, rent an apartment in my name where I will live. Later I may buy in my name. I understand I must remain non res for 5 complete tax years. With the above scenario, I felt I could be in the UK up to 120 days per annum without becoming resident, but I suddenly had a panic attack that I could only spend a maximum of 90 days in the UK...keep reading

Tax Question: Hi I have a client who has a property and is considering to sell all the property to his own Limited Company. The property is made of commercial section, buy-to-let section and their main residence. Can this property be transferred at below market value so that the company pays less stamp duty and there is less CGT on the sale?...keep reading

Tax Question: In relation capital gains tax calculations, can these be added to the calculations? follows Estates agents -- sales only and not letting fees? Valuation Fees -- for refinancing? Broker Fees -- for refinancing? Solicitor fees -- for refinancing? Stamp - the stamp liability...keep reading

Tax Question: a jersey company. shares owned by a swiss subject. company owns property in the uk. the property is rented out to a uk resident . the swiss person wants to transfer the shares of the jersey company for love and affection to her brother who lives in the uk. original acquisition cost 1m pound some 20 yrs ago today value 10mill pounds. disregard IHT .. property run as a serviced centre at present by way of a ltd partnership. rent is paid to offshore company . how will the position of the uk subject be effected by the transfer of shares...keep reading

Tax Question: My clients (husband and wife) have multiple BTL properties that they want to sell. I know the partnership/company route, but they want to sell in less than 2 years in case the tax rules/rates change. Is there any way they can sell the properties and defer/hold over the gains (other than the usual, possibly somewhat risky routes such as EIS, etc)?...keep reading

Tax Question: A ltd Co. buying its shares. The two shareholders of a private trading company with a healthy P & L A/c credit balance wish to withdraw funds of say £250k on the best possible tax terms. There are no creditors. It is suggested that they sell part of their shares back to the company. They envisage claiming business asset disposal relief on the profit on sale of the shares and thus pay 10% CGT. Please could you advise if this is feasible and are there downsides? Thank you...keep reading

Tax Question: To achieve compliance for Non resident CGT on disposal of UK residential properties (ie. low or nil CGT), does this only apply to being resident in certain countries and am I permitted to return to the UK for certain time periods within the 5 tax years ?...keep reading

Tax Question: I have a personal property portfolio. The properties were purchased between one and thirty years ago and have a Capital Gain of over £5Million. We are considering keeping our home as we are not married and moving abroad to avoid paying the CGT. How long do I need to leave the UK for - how many years can this be achieved in ? i.e. working abroad etc or selling the properties whilst travelling to the new country of residence? Also is there any advantage to putting the properties into a company offshore or open to other suggestions or professional advise ?...keep reading

Tax Question: I am currently UK resident/UK domiciled and have unrealised gains on a) BTC/Altcoins and b) shares in an Australian quoted company. I am happy to relocate anywhere in the world, although i would like to be able to return to the UK from time to time. Are there any ways in which I can shelter my unrealised gains from tax or pay a very low rate of tax?...keep reading

Tax Question: In the next tax year I think I need to spend less than 42 days in the UK so that I become non resident to avoid capital tax gains on my bitcoin portfolio. I intent to realize some of the gains at the end of 2021 and in 2022. I am married. I am UK domicile and my wife from Brazil has lived in the UK for the last 13 years -- we as a family have made annual trips to Brazil and own land in the country. My daughter is 18 and my son will turn 17 in June 2021. I run an online training business that was set up as an LLP registered in Scotland for this an also for trading currencies. All the business training activity is online and so the source of the income is not from the UK. Most of the bitcoin portfolio is in my personal name but some bitcoin is owned by our company. My wife is a partner in the company and works full time with me in the business. I plan to become a digital nomad for a year or two and before we then settle in Brazil with no plan to become resident again in...keep reading

Tax Question: A voluntary settlement owned a 999 years leasehold flat.The Trust deed allowed one of the main Trustee to be a life time beneficiary ( also settlers wish)allowing this beneficiary to live in the flat as the only and main residence.Now after the death of this lifetime beneficiary,the other trustees are negotiating the sale of the flat.It will give rise to a substantial gain.Can the Trustees claim PPR or any other relief to reduce CGT....keep reading

Tax Question: Hi, I have a question about property that has been moved into a LLP. Firstly, if you were to introduce other members, is there any tax planning strategies where CGT could be avoided? In addition, is there any advantages of a LLP structure when it comes to inheritance tax? Thanks...keep reading

Question: I have a shareholding in a UK company which is doing well financially and generating a good monthly profit. I want to 'asset protect' these shares by moving them out of my own name into either a Ltd company, offshore Trust or UK LLP, but am aware that they may be some form of tax payable by the company which owns the shares. Which, if any, would be the best vehicle to use? Many thanks...keep reading

Question: If I sell and buy same number of shares in same company on the same day am I allowed to offset any profit on those transactions against my personal CGT exemption for that year?...keep reading

Tax Question: Hi, Am I right in assuming that if one gifts a property to their adult child and survives for 7 years, although their child will be saved from IHT, capital gains tax at market value less purchase price will still need to be paid upon the transfer? What would be the most tax efficient way of transferring a property to an adult child?...keep reading

Tax Question: Partly because of Covid I will become UK tax resident this tax year. I currently have unrealized tax losses on shares held thru brokerage accounts. If I realize these losses can the losses be used to offset future taxable capital gains in the UK - on shares and property? Thank you...keep reading

Tax Question: Is New York State tax on the capital gains from sale of a property offsetable against UK tax....keep reading

Tax Question: Hi. This is a hypothetical situation where the Limited Company (Subsidiary) is incorporated in UK, having no Permanent Establishment and no clients in UK. And the Holding Company is situated in Bulgaria. In this case which country the Subsidiary Company will be considered as Tax Resident and what are taxes that the Subsidiary will be liable to pay. Also what will be tax liability of the Holding Company if it receives Dividend, Interest and Capital Gains from the subsidiary....keep reading

Tax Question: Can a UK Limited Company (a Subsidiary of a Bulgarian Holding Company) having no permanent establishment and no clients in UK be non-resident in UK for tax purposes (Explain Why). If yes, is there any kind of income on which it has to pay taxes in UK only?...keep reading

Tax Question: Hi Will there be SDLT to pay if properties are transferred into a trust based on market value. Assuming each value will be over the minimum thresholds? Thanks...keep reading

Tax Question: My company is cash rich I am the majority shareholder and I wish to purchase the other shareholders shares Whats the best way to do this?...keep reading

Tax Question: A franchise business has units in various shopping center. the Business is a UK Limited Company. Each unit is run by employees. The directors of the company manage each unit by visiting the shopping center and checking if everything is OK. Each directors are home based. Can he directors claim home to shopping center mileage?...keep reading

Tax Question: Hello - I have recently taken on an author who is UK resident but has also received book royalties from Germany. She has received such royalties from Germany over the past 4 years but the German publisher deducted withholding tax at 15.825% as the client did not provide any proof of UK residence. Had the client provided such proof then no German tax would have been deducted. I am in the process of preparing SA Tax Returns for the 4 years as she has not previously notified HMRC of her liability. Under the terms of the UK/German DTA - Article 12 - the royalties arising in Germany should only be taxed in the UK. Am I right in thinking that ,under any claim for Double Tax relief, the amount cannot exceed the overseas tax payable under the Treaty and that would be nil as no such German tax should be payable under Article 12? Is my client`s only recourse to approach the German Tax authorities to seek repayment of the tax by them? Thank you...keep reading

Tax Question: My mother has put her house into 2 trusts: !. My fathers half, valued at £250K. Done by deed of variation, now in a discretionary will trust (beneficiaries= 3 children) 2.My mother's half valued at £325K in a family trust, same beneficiaries. She doesn't pay rent to the trusts therefore I assume they are in her taxable estate for IHT The house is now worth £1M. What will the tax status be when my mother dies? Can we assume full nil-rate band on house as she lives there or will the trusts be liable to CGT as beneficiaries of trusts are all home owners and higher rate tax payers. Thanks...keep reading

Tax Question: If I am a member of an LLP that purchases several classic cars for investment purposes but also to use. Are the costs of maintaining and running the vehicles available as losses to be offset against the members of the LLP's other income?...keep reading

Tax Question: Is the Dutch ZvW-contribution paid by a UK resident in fact "Dutch tax" and therefore potentially eligible for foreign tax credit relief? Or is this a non starter?...keep reading

Tax Question: Hi everyone, apologies if my question makes me appear a bit 'wet behind the ears' but is there: Any means of rewriting the will of a recently deceased person,using a 'Deed of Variation' to create a discretionary trust and escape a large inheritance tax on their estate? Many thanks for your time, A....keep reading

Tax Question: Box 7 of IHT 402. My father died in September and everything was left to mum in his Will. Mum died in August. Main asset was house - value £750,000 plus some cash so total about £800K. What value do I put in box 7 of IHT 402? I assume it would be £400,000 being Dad's half of the assets at death which were all in joint names. But no formal valuation of the Estate was done at the time as all left to mum. Or, should the value in box 7 be £nil as his estate was exempt from IHT by virtue of the spousal exemption? Your help please!!!! Thank you!!!...keep reading

Tax Question: Can non-dom own shares of isle of man co or BVI co or Malta co and not have deemed distribution...keep reading

Tax Question: I inherited my husband's estate and want to pass some or all of it to our children, grandchildren, and great-grandchildren. Can I do so without them being liable for inheritance tax? The legacy has been in my bank account for only two weeks and has never formed part of my estate....keep reading

Tax Question: Hi Would a non-resident person be subject to income tax on any interest he charged on a loan to my UK Ltd company (interest would be rolled-up annually)? I am establishing a company to buy some land and build a house to let out but banks are not really interested in lending a startup company money on that basis. I have a non-resident family member who will lend the money but wants to charge a commercial rate of interest (I assume that could be high if no bank will do it) and doesn't want to pay UK tax. Is this possible? Thanks Yasman...keep reading

Question: I have an inheritance tax question. Myself and my wife are both in our 80's. We have three children (both Sons). We provide financial assistance to each of them and want to ensure that the amounts we pay to them are exempt from inheritance tax. Our current annual income is 10 times the total "Gifts Out Of Income" to our 3 Sons. We provide financial help to each of them of around £5,000 per year. This includes the use of a credit card to pay for petrol and groceries, regular gifts of premium bonds and regulart cash transfers to a savings account. We want to make sure that we're OK to assume that these amounts will meet the criteria for the 'gifts out of income exemption' and that there will therefore be no inheritance tax charged?...keep reading

Tax Question: Can I set up an overseas company for the purpose of lending funds? Can I use these funds to either settle the existing mortgage or buy a new property for us to live? Is it also possible for that company to lend funds for BTL Property? What is the best jurisdiction to setup such a company and would you advise such shares to be bearer shares? Thanks,...keep reading

Tax Question: Is it possible to retain and carry forward tax losses accruing from a sole traders business when that business is incorporated? What impact if any is there on Incorporation relief provisions?...keep reading

Tax Question: if i gifted my business to my son in 2021 and my son continues in this business and i die in 2024. Does this gift (a) form a PET and (b) form part of my estate in 2024 for iht purposes?...keep reading

Tax Question: Dear wealthreport i have a company from which i do not take any salary or dividends. the earnings are retained by the company. if i wanted to take advantage of the childcare voucher scheme, could i take a salary for the amount of the childcare voucher - as a salary sacrifice - and still not take any other salary or dividend? thanks kind regards...keep reading

Tax Question: A DTA states "Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State." Does that mean that any Directors fees earned for board memberships in the country subject to the treaty are not taxable in the UK?...keep reading

Tax Question: Assuming property purchased with mortgage/loan from parents but after some years the parents decide to write the mortgage/loan off. What is the process to do this? 1) Can parents simply give a letter stating loan is written off? and what should the wording be? 2) Where should this letter be registered and within what period of time must it be registered? TIA...keep reading

Tax Question: Is it true that if a father (F) gifts the main residence £1m to a son (S) there would be zero CGT (due to PPR) and a PET for IHT which after 7 yrs will be zero, provided he also pay market rent for the accommodation (to avoid the reservation of benefit) until he ceases to use it eg. death or care home. If he dies before seven years does taper relief then apply?...keep reading

Tax Question: If I bought securities on margin, then are my capital gains reduced by that margin interest [i.e. are is the margin interest treated as a cost of trading the securities] or do I need to deduct the margin interest from the interest received in the year on my trading account?...keep reading

Tax Question: Is it possible to waive a proportion of a dividend. For example half the dividend that may become due in the following year on one share ? Is there a precedent in law for or against this ?...keep reading

Tax Question: My mother is 73 and Her assets are a flat worth 620k and cash of 190k. Father passed away around 35 years ago. We are 2 sisters what would be the best way forward to plan for IHT. Looking forward for your suggestions and tax implications....keep reading

Tax Question: I have a farm of about sixty acres which I have operated mainly with animals and arable for forty years and is excempt from IHT as agricultural property relief. As I am now approaching eighty years old and feeling the effects of those years of very long hours and hard work. I would like to branch more into holiday lets in shepherds huts and DIY horse livery. Would these operations effect the IHT status?...keep reading

Tax Question: Dear Sir./Madam. Can capital gains from the sale of digital currencies be claimed under the remittance tax basis, provided that a non-UK exchange was used for the sale and that the proceeds are kept in a non-UK bank account? The main question is about what qualifies as 'location of assets' in the case of digital currencies. Thank you....keep reading

Tax Question: I'm writing a second edition of my book. If the book is published in the U.S., I have to pay a flat 30% withholding tax on all earnings. The publisher has asked if I would consider publishing via their UK office. As a non-resident British citizen, do you know how I would be taxed on a royalty advance and on any subsequent royalties that follow?...keep reading

Tax Question: For the count of 7of 9 years for the remittence charge, does a split year treatment count as one of the years of the 7 years. Specifically if it is the first year of the 7. Thanks....keep reading

Tax Question: I am not UK tax resident. If I provide professional independent services FROM the UK to non-UK clients but the business has no fixed premises in the UK (just a virtual office address) will HMC tax my business profits? [I understand (I think) that under the DTT with my country of residence (Switzerland) I may be taxed if I offer services from a fixed base in Switzerland.¨]...keep reading

Tax Question: Hi Q. Off-shore Trust has made loan to Off-shore company who has in turn made loan to a UK resident company of which Mr A is a UK resident shareholder and beneficary of the off-shore trust. Settlor of the trust was non UK resident and non domicile. What would be the best way to give the above loan to the beneficary with least tax cost. Is there anything to watch out for re HMRC?...keep reading

Tax Question: My father lives in New Zealand and has done so for the last 40 years, however he was in the UK, I live in the UK, would we have to pay IHT when we receive money from his NZ home....keep reading

Tax Question: What is the most tax efficient way to buy a UK residential property for a UK minor?...keep reading

Question: My older brother is fairly well off and has offered to buy some premium bonds in my name. How will this be treated for inheritance tax purposes. I know that premium bond winnings are free of income tax but what about inheritance tax? What is the position in the event of his death and also at the time of the gift to me?...keep reading

Question: I am a UK citizen and have lived here for over 7 years. Before that we lived in the US for over 20 years. I'm concerned about where my potential inheritance tax liabilities may lie (so I can the reduce it!). We have assets owned by us which are based in the US. This includes: - Bank accounts - US shares The income from the bank accounts is paid gross by the US and taxed in full in the UK. The US dividends though are subject to a 15% tax withholding in the U.S., but we then get a tax credit in the UK. What is the position for inheritance tax purposes under the Double Tax Treaty that exists between the U.S.A. and the UK?...keep reading

Tax Question: One of my clients is a property development LLP (2 members).They bought a property for £210,000 to re-develop it into 7 apartments. the property still in their name and not the LLP company. They have already spent over £100,000 on the development. What are the advantages & disadvantages in transferring the property ownership to the LLP company. If they do make the transfer will they be able to claim the £210,000 and all the cost of the development from the company as a long-term loan. Are they entitle to any relief?...keep reading

Tax Question: Hi, Love the site! Finding it really useful. I am currently uk resident (and domiciled) but going to move to Malta next year with the view to being non uk resident and plan on being away from uk for more than 5 years. I am currently working for a uk company (on contract) via a limited company. There is a distinct possibility that when I tell them I'm leaving they will offer to let me work remotely. If not then I would not be working in Malta and living off my own funds. I understand the non residence test rules and would deliberately spend less than 16 days in uk for each of next 3 years to ensure I am non uk resident and would not return to uk (permanently) for at least 5 years (if at all). - If I work from malta (software development via remote VPN connection to client pcs) via my uk limited co, am I correct in understanding that I would pay uk corporation tax on the company profits but no other income tax in uk if I do not draw a salary? - my understanding is tha...keep reading

Tax Question: UK domiciled resident and sole shareholder of non-UK (but EU based) holding company. If UK resident sets up a UK ltd, can it be fully owned and financed by the EU holding company? Can any dividends of UK ltd post UK corporation tax be paid back to holding company? Are there any personal tax liabilities for UK resident shareholder of EU holding if no dividends are paid from the holding?...keep reading

Tax Question: Hi what tax is payable by a uk resident, who receives income from a non resident discretionary trust...keep reading

Tax Question: Hello, I am looking to setup a new business venture selling websites to small business in UK and USA I am a UK Citizen and resident and will want to work from Thailand have the following questions; 1. should i trade as a sole trader then switch to a UK Company and file Non Residence? 2. Should I just set up a offshore company and simply trade offshore? 3. Would it be a good idea to have freelance sales people in the UK? Please give me your thoughts thanks...keep reading

Tax Question: Hello, my parents are looking at re doing their wills to save on inheritance tax. For the past 5 years i have been living in their home, covering my own expenses. am i correct in thinking that if they leave me this property in which we all live in their wills that it will be inheritance tax free? if not what will be the most tax efficient way of arranging my inheritance, as if the tax is too great i will have to move out anyway....keep reading

Tax Question: when is a non-resident and a nondomiciled person considered a resident and if proved to be a resident then what are the tax consequences?...keep reading

Tax Question: I live with my Father in our private residence which he has owned outright for the past 10 years [he is single and divorced my mother]. About 5 years ago he gifted me half the property and we are "tenants in common" with use of a solicitor. He has made no other PETs or Lifetime gifts. We jointly pay the bills and for maintaining the property. The property is valued today at around £1m As he continues to enjoy some benefit in the property my questions are this: 1, Would IHT be liable on the value of the whole of the estate above the nil rate band on death because it is a Gift with Reservation of Benefit. 2, If my Father became a lodger in the house and paid market rent for a room would that take the transaction out of being a GROB. 3, Is there a chance he would be caught by the Pre-Owned Assets tax charge?...keep reading

Tax Question: Can you please answer the following question : I have a property in my sole name and the mortgage (BTL) will be in joint names . My wife and I live in this flat and it is currently our main residence. I am in the process of purchasing another(bigger) property to live in and it will become our main residence with the ownership and mortgage in joint names The current property/ flat will become our buy to let (BTL) property and & the ownership will remain in my sole name and the BTL mortgage will be in our joint names My questions are as follows: The new property will be my second property for Stamp duty purposes and will therefore attract the higher/surcharge rate (1) Is there any way I can avoid the additional Stamp duty i.e by transferring the current property to a limited company (if this possible) ? (2) What is the position regarding stamp duty for the property transfer into ltd Co- will it be normal rates or higher rate stamp duty ? (3) Wi...keep reading

Tax Question: Hello, 1) I would appreciate, if you could advice regarding LLP UK. If the LLP UK company (owned by two nonresident legal entities) is purchasing goods in UK and selling them overseas, is there any risk that LLP UK might be classified as permanent establishment in UK and should it have any affect on LLP UK partner taxation on profits overseas? Shall the UK LLP partners (non residents) be taxed according UK legislation, if this company would trade(purchase and sell in UK)? Thank you in advance...keep reading

Hi I am UK resident and a UK national. I have over 500,000 GBP invested in various crypto assets, including NFT's. Some of these are showing significant losses. Can I get any tax relief for these losses?...keep reading

Tax Question: My father died 6 years ago leaving my mother his assets which was half of her existing residence.she also owns a cottage which has been in her family for many years,is his inheritance tax threshold still available to use on her death?thanks ianb...keep reading

Tax Question 1 : If you leave rental income overseas do you have to pay income tax in the UK Tax Question 2: Is there anyway to use your annual CGT allowance to offset rental income?...keep reading

Tax Question: I am a non dom resident in the UK and I am a beneficiary in a non discretionary trust. The trust has shares in a UK trading company.If dividends are paid out will I be taxed on it though the trust has not paid out to me. If I have to pay tax then can I pay £30,000 on remittance basis? The UK company pays corporation tax, will I be taxed as beneficiary even if the dividend is not distributed? Thanks Mukesh...keep reading

Tax Question: hoping someone can advise... I have clients - a Husband and wife in the UK. they have compensation after an industrial accident. This money is held by a UK trust of which they are the trustees. They wish to buy a property in Spain with the money in the trust. The property will generate some income each year and they want this income to be "earned" by the trust as the holder of the property. I cannot find much at all online about this. The Spanish tax office havent shed much light on what they require either. Any examples of anyone from the UK doing this in Spain?...keep reading

Tax Question: Hi, I'm trying to read between the lines in some of your guides and articles but still have questions on tax payable by offshore trusts/beneficiaries. If a uk resident pays into an offshore discretionary trust and then becomes non resident, are capital and income distributions free of tax when taken while non resident? Are there any exceptions to this through anti avoidance provisions? And does it make any difference if the original source income was connected with employment or self/employment/close companies? Thanks M...keep reading

USERNAME: Rodderstax Tax Question: Re Tax on rented property. If in the tax year to 5th April 2022 a landlord declares a rental income for tax of circa £20,000 and tax is paid. In the tax year to 5th April 2023 the same landlord has deductible repairs totaling circa £40000 -causing a rental loss for tax of £20000. Do the tax provisions allow that loss to be offset against the previous years income to cause a tax refund. OR are there other ways of using the loss...e.g. Carrying loss forward or against other income? Essentially what are the choices?...keep reading

Tax Question: If we own a rental property as tenants in common how do we split income. One partner does all the admin and management. How do we spilt the income if one landlord does more work than the other?...keep reading

Tax Question In July 2022 i spent over £30000 repairing and painting a rental property that has been rented for several years. This years tax return will be up to 5 April 2022 and will be expensive in tax terms as no significant tax deductible expenses....keep reading

Tax Question 1 Hi. Is there any difference with regards to the method for claiming employment expenses that I need to be aware of when running a sole director, sole employee (myself) ltd company? ie professional training fees, phone calls, travel. My understanding is that I can either pay directly from the company bank account or reimburse myself for costs incurred and then claim as a deduction when doing my company tax return; or claim on the employment pages when doing my personal tax return. Does one method have any advantage over the other (financial or non-financial)? Tax Question 2 I have a question on employment expenses, specifically travel expenses. HMRC guide EN6 in regards to travel costs states "if travelling is your job, you can deduct the cost of travel, meals, and so on from the time you leave home." Is this applicable if travelling to temporary workplaces is required ie contracts <12mths? Is there any clarification available on what "if travelling is ...keep reading

Tax Question: An offshore company is beneficially owned by UK residents. It invests in UK companies . Is the best means of protecting the beneficial owners from tax on income and CGT a trust? Is there any point in making the trust offshore if the beneficial owners are UK resident? If the offshore company is a subsidiary finance company as it only finances UK operations can the UK company be the shareholder of the offshore subsidiary? If the shares of the parent company are held in a trust which is UK based are there tax implications on the shareholder ie the trust if no dividends paid and shares simply held?...keep reading

Tax Question: A Question based on the below post and response ....Tax Question: On page 171 of your excellent book "Non-Resident & Off-shore Tax Planning" on page 171 you write the following: "The UK only has a small number of inheritance tax double tax treaties (11 in total). In some circumstances, exclusive taxing rights in relation to the sort of property caught by the new rules (for example, shares in a company) would be allocated to the other country. The draft legislation includes provisions which override these treaties unless the other country charges inheritance tax or a similar tax and there is actually some tax to pay (however small) in that country. So, for example, if an individual is domiciled in India (where there is no inheritance tax), the treaty will not assist." Could you please direct me to the draft legislation (section numbers etc) which contains the provisions to override the treaties unless the other country charges inheritance tax or...keep reading

Tax Question: With investment and interest income, what determines if the income is 'UK source income' -- is it whether or not the tax payer is resident in the UK, or whether the investment platform is based in the UK? What determines 'UK source income' for the following: dividend income from investments (stocks, funds, ETFs), capital gains on sale of securities investments, interest from bank accounts, interest from P2P (peer to peer lending platforms)? Is the criteria for determining UK source income the same if UK resident or non-UK resident for tax?...keep reading

Tax Question: Hi, In the case of dual tax residence, lets say its Isle of Man and UK for this example... which jurisdiction is considered the prime or 'major authority' of the two? So say in one tax year I have a permanent residence in the Isle of Man [ie this is my home with a property in my name], but then over a period of 12 months in a single tax year I also qualify for tax residence in the UK due to a unusually high number of days spent visiting/attending to sick relatives [even though I don't have a home or any other ties with the UK]. Would HMRC still be entitled to treat my personal tax circumstances in the same way as a 'permanent' UK resident [ie somebody with home/family/dependents/full time work etc]? Would I still be able to have any benefit of IoM residence even though I would also be considered UK resident in the same year? How does it work as regards global income? I have been UK non-resident for the past 16 years....keep reading

Tax Question: In the UK LLCs are considered corporations and not fiscally transparent. If an LLC is centrally managed and controlled in the UK but has no branch nor trade there is it subject to CT? If it is so managed in another country will HMRC consider it resident there? If a member of an LLC is UK resident does he only pay tax on dividends and not his share of CT it being considered a corporation while LLC's home jurisdiction considers it fiscally transparent? Can the protector of an offshore Foundation be UK resident and still not be brought onshore? What powers do hmce have to determine if a Foundation manager exerts 3rd level management and control and if that Foundation just owns property and shares what does 3rd level involve?...keep reading

Tax Question: 1. if a uk non domiciled person gives gifts of OEICs to his Uk relative does it qualify as excluded property? I understand that if cash gift in GBP is directly remitted to the relative this is a grey area that it may be considered UK situs gift with IHT implications. Is a usd transfer to UK beneficiary qualify as excluded property? 2. Is a Deed of Gift required when giving gifts as in 1 above? 3. If a person expresses an intention to stay permanently in the UK when applying for UK citizenship, does this automatically lead to UK domicile of choice and abandonment of domicile of origin. And what would be the domicile of the children subsequently born after receiving the citizenship, if the person is still in the UK at the time of their birth?...keep reading

Tax Question: I am a member of a LLP that owns an investment property in Australia. Both LLP members are UK citizens and UK resident. The Australian Taxation Office views a UK LLP as a corporation, so the LLP pays Australian corporation tax on the rental income from the property. Foreign Tax Credit is claimed against the Australian tax so that the UK income tax is offset against it according to the double tax treaty. I would like to confirm that: 1. The members of the LLP are entitled to Foreign Tax Credit. 2. The fact that the LLP is taxed as a corporation doesn't matter. (This was our understanding based on an HMRC Tax Bulletin article but would like to confirm). 3. If we were to sell the property, Foreign Tax Credit could also be claimed against any UK CGT. https://www.gov.uk/hmrc-internal-manuals/partnership-manual/pm131540 Finally, are there any mitigation strategies against both UK and Australian CGT if we were to sell the property? Many thanks, Ian...keep reading

Tax question: I am a UK resident and the sole director of a Limited Company. I am looking at moving to the USA. If my business remained registered in the UK, I understand it will still be subject to UK Corporation Tax, which is fine. But my main question is, if I paid myself a dividend from the business to a personal account in the US, what tax (if any) would I have to pay on that income? I ask, because having previously looked into this when considering moving to Portugal, I found out that Portugal would not tax any dividend payments coming from the UK. I wondered if the same (or a smiliar) agreement was in place between UK and US....keep reading

Tax Question: I have a holding in an offshore fund [non reporting] and am currently non UK resident. Gains within this fund are taxed as income in my current tax residence yearly, whether or not this income is distributed from the fund. I may become UK resident in the future. My understanding from the UK side is that income/gains within the fund are all taxed as income but only when distributions actually occur. Therefore am I potentially exposed to tax twice on income within the fund, once in my current residence on undistributed income and secondly in the UK were a distribution of this income to occur after gaining UK tax residence? Is their any mitigation or strategies in place for minimising this effect, such as a base cost uplift at time of change of residence? Regards...keep reading

USERNAME: Wn Tax Question: A UK tax resident has rental income from both UK and overseas property. The overseas property income is in a country with a DTT with the UK and progressive income tax from 15% to 23%. The overseas jurisdiction allows for the most beneficial of either actual costs or a lump sum deduction of costs against income. A £15,000 rental income and £5,000 costs would be taxed on £10,000 profit, while a £15,000 income and £3,000 actual costs and £12,000 profit can also be assessed as £15,000 rental income 30% £4,500 costs with tax payable on £10,500. How should the overseas rental income in these scenarios be declared on a UK Self Assessment tax return and how will it be taxed?...keep reading

Tax Question: Re: Share options: I have varying amounts of share options from my company . Most of these have now vested over a 3 year period. I would like to sell some of these. As I have been living and working in Malaysia since February 2021, are my share options thus pro-rata'd for UK tax as I am now non resident for tax purposes. If so, what are employer and employee NI contributions implications?...keep reading

Tax Question: Hi, I am looking into setting up a UK LLP with one member being a UK resident and domicile (potentially we can incorporate a UK limited company instead of individual membership) and another non UK resident/non-dom (again we are looking into involving an offshore company). The majority partner (over 50%) will be based in the UK. The services will be provided both in the UK and overseas. Control and management will be exercised jointly and from both locations (we can have management meetings both in the UK and overseas) Our concern is that UK LLP will be treated as a branch and overseas member will loose pass-through treatment. What should we bear in mind to avoid/minimise overseas partner paying taxes on all profits (including the ones arising outside the UK)? Many thanks...keep reading

Tax Question: Hello I am a uk resident\dom. I'm going to work overseas\offshore, for a U.A.E based company. The company will pay in to any bank account I chose. Is it possible start a start\open a non UK company with bank account abroad? I would give my services through my company, to the oil company, and then pay myself minimal wage from my company to my UK account as an employee. Leaving the remainder of the money oversea's in the company's account. (I would provide pay slips\timesheets as an employee) My life style would match my UK declared wage. If my pay to my UK account matches my pay slips\foreign work contract. Will the HMRC accept this as enough evidence of my salary to tax me on? What other info can they request? Is there any preferred place to open companies\accounts that HMRC find difficult to investigate or where the local government won't share information with the UK? Is a foreign umbrella company an option?...keep reading

Tax Question: Hi, I have recently returned to UK after 20 years overseas and have been in the UK now for 1.5 years. I did some international consulting work for an overseas company doing the work in africa in the last tax year and paid tax in the UK as self employed. However, this tax year my international consulting work is increasing and means I will spend less than 6 months in the UK and the other part of the year will be spent in Dubai and some other international countries. I still maintain a property in the UK that I don't plan to rent out yet Would I be liable for UK income tax on this income? And if so how much time to i need to spend outside the UK to reduce the tax liability in the UK? Are there any other things I need to comply with to reduce UK tax liability - what are my options here going forward? Thanks...keep reading

Tax Question: I have a multi-year fixed interest bond. I wish to optimise my wife's lower rate bands. I cannot make her a joint legal owner of the bond. Is it possible to remain the legal owner registered with the building society and yet have her as a 50% benefical owner entitled to 50% o interest [and the capital when the bond matures]? Is a simple letter [Declaration of Trust] from me to her giving her 50% o the beneficial ownership in the funds, enough to keep the revenue happy in this regard. Many thanks...keep reading

Tax Question: Dear Sirs according to the ITA UK tax Treaty if a person works in Italy but is Treaty resident in the UK, he should be taxed only in the contracting state where he works. In this case he should pay all the taxes in Italy only, given that he does not have any income in the UK. Should this be the case, can the DTT be read as if the person does not have to submit any income tax return in the UK? Many thanks...keep reading

Tax Question: Residents of Malaysia and Singapore have residential property income in the UK. Are they entitled to UK personal allowances? Thanks...keep reading

Tax Question: Assets held outside the UK are not subject to UK Inheritance Tax for those who are not domiciled in the UK. Are the Channel Islands considered to be outside the UK for tax purposes?...keep reading

Tax Question: The following questions relate to foreign tax in relation to a foreign rental property of a UK resident & domiciled individual taxpayer. 1. Should the foreign witholding tax be included in the UK return based a] on when it was PAID or b] in relation to the fiscal period it relates to [note the fiscal year in the foreign country is Jan-Dec not Apr-Mar so how does one deal with this ?] 2. Can late payment interest on foreign tax be included in the UK return ? 3. Can late payment penalties on foreign tax be included in the UK return ?...keep reading

Tax Question: I have an overseas property that was won when we were on holiday in Dubai. It was registered in my name as i wrote my email as the contact detail on the prize draw ticket. It was quite a process to register, hence, its wont be easy to add my spouse to the title deed. To date I have included all the income in my name, but would like to utilise my spouse's tax allowance. Can I allocate 50% o the rental income (appr 4000 pa) to my spouse ? Thank you....keep reading

Tax Question: A non-dom UK resident who has not claimed the remittance basis "receives" a distribution from a trust in South Africa. However, the distribution while declared is not actually paid but allocated to a loan account. When would this be taxable in the UK in the hands of the beneficiary?...keep reading

Tax Question: I have shares in a company that was quoted on the UK stock exchange when I bought them 10 years ago.I have never been a director of the company and I own less than 5% of the shares The shares were in a newly formed company. The company came out of the stock exchange, to the AIM market, and then went private. The shares are now worthless. I know about the shares crystallising a loss for CGT purposes but I have read that such a loss can be set against income. What are the criteria for using the loss to offset against income and what does "shares origanally subscribed for and not bought from a third party" mean?...keep reading

Tax Question: Dear Sir, I purchased an apartment bloc in Switzerland some 30 years ago and all the apartments have been rented out. Some twenty years ago I gifted the property to my two children which is now well outside any potential inheritance gifts tax. I am currently considering agreeing with my children to use one of the apartments rent free as a holiday home when visiting Switzerland. My daughter who also lives in one of the apartments suggested for us to make some Swiss legal provisions to have rent free use of this holiday apartment as a possible permanent home to enable her to look after us in our old age if and when required. Could you please advise me whether by using the apartment for the occasional week rent free and making legal provision under Swiss law as a permanent home would have an adverse effect so far as the original gift is concerned. Many thanks, Columbus...keep reading

Tax Question: Hi We recently just bought a house and the house is not in the condition to let out for tenant. There is no kitchen but has the sink, toilet in bad condition, old carpet and old boiler etc. So we will need to renovate the whole house basically with all the new items, may I know is the renovation cost is deductible from the rental income or will it classify as a capital expenditure? Please could you advise what cost that allow to deduct from the rental income? Thanks...keep reading

Tax Question: French tax resident individual is seconded to work in the UK for 18 months. Salary is paid by French employer but subject to PAYE in the UK [direct payment scheme] as all duties performed in the UK. The French employer also deducts French retention tax, but this is not taken into account in the PAYE calculations. At the end of the UK tax year, the individual completes a UK tax return for their UK employment income. From what I understand double tax relief for UK income tax is claimed in France, with the individual entitled to a repayment of at least some of French retention tax, depending on the French tax rate. A claim for double tax relief for the French tax should not be made in the UK on the basis that all employment duties were performed in the UK and therefore the UK has first taxing rights? Is this correct?...keep reading

Tax Question: Hi, I have 2 rental properties in 2 countries in the EU other than the UK. The property in one country is let and in the other has been empty. Is it possible to set the costs of the unlet rental EU property against the let EU property even though they are in different EU countries? On the self assessment pages investment property in each country gets its own section, so the income/cost figures are entered by country. What I would like to check is; am I able to enter in the costs of maintaining an EU rental property even if I am not receiving rental from that property? Thanks....keep reading

Tax Question: I have a client who is a Journalist and works from home. He lives on a very busy street and has had secondary glazing put in the one room where he does his work to allow him to concentrate and be able to work from home. Will HMRC allow this as a repair in his Self Employment Accounts?...keep reading

Tax Question: Hi A limited company owns a commercial property. The tenant will be leaving soon and is liable for dilapidation repairs, but they prefer to agree a financial settlement instead of about £50,000 instead. How is this treated in the annual accounts? If the company chose to spend it all on repair works, spend some of it on repair works or simply just keep it for the time being; how do these decisions influence its treatment in the company accounts? Thank you Answer:...keep reading

Question: A widow in his 60's has assets of around £300k, including a 2nd home, rented out(£6k per annum) worth about £120k and acquired 10 years ago for £30k.He wants to ring fence this property by putting it in trust for his son. What are the respective advantages /disadvantages of using a non-settlor interested discretionary trust as against a flexible gift trust, in relation to 1.capital gains tax on the transfer to the trust 2income tax on the rent 3.iht (he is not too concerned about this as he does not expect his estate to exceed the nrb threshhold thank you...keep reading

Tax Question: An individual owned 80% of a trading company shares. He set up a Discretionary Trust in 2017 and gave it 10%. For IHT the transfer would be the loss to his estate i.e. the difference between the values for owning 80% and 70% but the gift was covered by BPR so it did not matter. The Trust is about to sell all the shares and in due course will make capital cash distributions to the beneficiaries. I am looking at exit charges before the 10th anniversary. In that calculation is the value of relevant property immediately after the settlement commenced to be taken as the loss to his estate or the actual real value to the Trust of the 10% shareholding on its creation?? There would be a significant difference between the two - the NRB would not fully cover the loss to the estate value but would cover a real value of 10%. I assume the BPR will be lost as soon as the shares are sold and the trust assets are purely cash?...keep reading

Tax Question: Hello, I'd like to understand the tax treatment of forward currency contracts. Assume I sell forward Eur 100'000 against the £ and at maturity I receive £70'000 at the forward rate of .70. If now I sell the £ back at the spot rate of .80 at maturity, I will receive Eur 87'500 for the £70'000, or a loss of Eur 12'500. If on the other hand the spot rate is .60 I will receive Eur 116'667 or a gain of Eur 16'667. What is the tax treatment under each scenario? I assume that as of 2012, gains and losses on normal withdrawals from foreign currency bank accounts are not subject to capital gains tax. Thank you...keep reading

Tax Question: UK/US Inheritance/Estate Duty Treaty I am dealing with an individual who is currently living in the USA and is a Green Card holder. They are looking at moving to the UK. He has a domicile of origin outside both the UK and US. In terms of exposure to UK IHT, they will be potentially liable on the value of their UK assets. For US estate duties under the UK/US estate treaty given that they would be considered US resident (domiciled) for the purposes of the treaty, would all other assets outside of the UK be liable to US estate taxes?...keep reading

Tax Question: Dear WPR Team I am UK resident and I would like to invest in COMPOUNDED HIGH YIELD 5 Year BOND issued by UK company (it does not pay investors on an ongoing basis but rather reinvests the monthly interest which provides a boost to investors returns ). If I invest 10,000 GBP the bond pays out after 5 years 10K gbp back plus 4500 (45% iterest). Please can You tell me if I am liable to UK tax on yearly basis on such 5 year bond or does tax liablility arises only after 5 years when I get interests and inital deposit back ? Martin...keep reading

Tax Question: Revocable Life Interest Trust Hi, I am currently in process of creating a pair of wills for myself and wife. Considering life interest trust as the vehicle for providing for our young children if we both die. Having read 'Tax planning with Trusts" I favour making the trust revocable. The amounts in the trust would be over the nil band IHT rate. However, the advice I have been given is that if the interest payments to beneficiaries are stopped then any other disbursements from the trust will be subject to an additional IHT charge (as the trust will then be discretionary). I have clarified that the trust should remain 'life interest' but that interest payments could just be delayed, for payment at some later date. I await clarification on whether that is an acceptable solution with no additional IHT charge when assets exit the trust, but would appreciate any further clarity you can provide on this scenario. Thanks and regards, Tim...keep reading

Question: My parents and my in-laws are all Non-UK residents. We have 3 children all under 12 years. Every December my parents and in-laws want to send money (gift) to our children on their birthdays and at Christmas. I have been meaning to open a bank account in their names but have been delaying it. What is the best way for them to send a gift? Direct into their account or could it be made into our account? Will it be clubbed with our income? Also are there any tax liabilities if my husband and I receive the gifts direct instead of our children. End of the day, we will be the ones spending it for their benefit. I had read somewhere, it is better for my father in law to make a gift to his son (my husband) instead of his grandson. Similarly if my brother in law gifted to my husband and/or to me - would this have any effect on our tax liability? What letters /deeds do we need to ask from the person making the gift? Thank you....keep reading

Tax Question: According to the SRT days spent in the UK are "defined as as: "3.1 You are considered to have spent a day in the UK if you are here at the end of the day (midnight)." So am I correct in thinking that after a stay in the UK one does not count the day of leaving ?...keep reading

Tax Question: BTL property If I was to buy a property to rent. Currently it will be in my sole name as could not add my wife due to the mortgage requirements. (This can change in 2 years so she can be added) If I prepare a deed of trust so that the beneficial interest is in my wife s name 100% ad she will receive all the rental income. 1. What do I need to do to ensure that its tax compliant if she receives 100% o the rental income? 2. Or is there another way to do this? 3. If she owns the property jointly can I elect for her to receive 100% o the rental income?...keep reading

Tax Question: I am transferring the beneficial interest in rental properties I own by declaring a bare trust in favour of a foreign company The mortgages I currently hold will continue in my name. Presumably I will be submitting a return from now on in the name of the foreign company and accounting for the rental income as if received by that company. If so, what happens re the interest paid on the mortgages. I assume I may still deduct it from income. I have provided on the trust deed that for so long as the mortgages subsist and are paid by me, the beneficiary company will reimburse me . Will this suffice, or do I need anything else to be able to deduct it?...keep reading

Tax Question: Hi 1] A company has two shareholders, a husband and wife. The wife has no income, so ideally, dividends can be distributed to the wife, but not to the husband who is a higher rate tax payer. Is it possible to give dividends to one but not to the other? or must they both receive the same amount of dividends? 2] Dividends were paid out a week or two before 5 April, but the receiver would like to count them towards the next tax year. Is that possible? or is he forced to count them towards the tax year according to the date the dividends hit his bank account? Thanks...keep reading

Tax Question: Dear Sir, A discretionary offshore trust was established 3 years ago, from an unrelated settlor for my benefit (and for the benefit of my children). Since inception, the investments of the trust never made any capital gain or income, but actually the investment strategy of the trustee made a loss (also including running costs and legal fees). As a potential beneficiary, could I suggest a distribution of capital? Will be this distribution taxable? As I am a UK resident non domiciled, I'd be liable to pay a 30,000 GBP non remittance charge (in case opting for the NRB), but I am wondering whether this distribution of capital would just be free of tax. Thanks....keep reading

Tax Question: A property developer LLP with two members. One of the members wishes to leave the LLP. My understanding is the LLP has to be dissolved if stayed under the minimum members requirements for more than six months. The other member wishes to stay running the business by forming a normal limited company by himself. My question is what will happen to the current assets of the LLP? Can it be transferred to the other member? Currently, the LLP is taking one of their contractors to court, can the LLP be dissolved while the case still going?...keep reading

Tax Question: I have two SIPP'S. both in drawdown. My LTA is protected at £1.5mn. I am currently non-resident for UK tax purposes, but planning to return to the UK before my 75th birthday. Am I correct in thinking that so long as the value of my two SIPP's is below £1.5mn on my 75th birthday, I will have no tax to pay at that date? And thereafter I can leave the balance of my SIPP to accumulate tax free?...keep reading

Tax Question: Dear Sirs there is a UK resident individual who owns a foreign property which is let out. Obviously he needs to put this income in his UK tax return but there is an issue with regards to the different tax year between the two country. In the foreign country the tax year runs from January to December unlike the UK. Is it possible to take into account the foreign property income realised in 2020 as it had been realised in the UK tax year 2020/2021 and going on like that for the future years? It would make the calculation much easier and more reliable also for the foreign tax paid. I look forward to your reply...keep reading

Tax Question: Are monies remitted to the UK for the purposes of making lump sum payments to an individual as part of a separation consent order subject to the remittance tax? I need to make payments as part of a settlement agreement and am wondering if I use my offshore accounts to pay these (where all of my assets are based) that these will be subject to remittance tax. The money would come from foreign interest/earnings previously shielded by the remittance basis....keep reading

Tax Question: Good morning, Inheritance Tax. Could you please clarify a point for me? In your excellent book " How to save inheritance tax 2023/24" Page 43, it's mentioned under 4.3 PETS that "Exceptions". Any transfer that does not result in an increase in the value of the transferee's estate. On the other hand, a national newspaper answering a question from a person about paying for and joining a family holiday,states that " IHT is based on the principle of the loss to the donor ratherthan the benefit to the recipient" Thank you...keep reading

If a man is a non uk resident and non uk domicile, are his UK assets subject to IHT. If so - What are the IHT allowances - How much can he pass to his spouse without incurring IHT. Is it the total estate just like a UK resident, or is there a limit...keep reading

Tax Question: Hello. I have a question regarding inheritance tax. As a potential beneficiary to an estate who is not a resident of the UK, will I be subject to UK inheritance tax or the equivalent tax of the country where I reside?...keep reading

Tax Question: My parents are UK doms and have a discretionary trust in the UK. Can this trust be moved to an offshore location? If so, will doing so provide any inheritance tax advantages? Thanks....keep reading

Tax Question: My mother has put her house into 2 trusts: !. My fathers half, valued at £250K. Done by deed of variation, now in a discretionary will trust (beneficiaries= 3 children) 2.My mother's half valued at £325K in a family trust, same beneficiaries. She doesn't pay rent to the trusts therefore I assume they are in her taxable estate for IHT The house is now worth £1M. What will the tax status be when my mother dies? Can we assume full nil-rate band on house as she lives there or will the trusts be liable to CGT as beneficiaries of trusts are all home owners and higher rate tax payers. Thanks...keep reading

Tax Question: Hi everyone, apologies if my question makes me appear a bit 'wet behind the ears' but is there: Any means of rewriting the will of a recently deceased person,using a 'Deed of Variation' to create a discretionary trust and escape a large inheritance tax on their estate? Many thanks for your time, A....keep reading

Tax Question: Box 7 of IHT 402. My father died in September and everything was left to mum in his Will. Mum died in August. Main asset was house - value £750,000 plus some cash so total about £800K. What value do I put in box 7 of IHT 402? I assume it would be £400,000 being Dad's half of the assets at death which were all in joint names. But no formal valuation of the Estate was done at the time as all left to mum. Or, should the value in box 7 be £nil as his estate was exempt from IHT by virtue of the spousal exemption? Your help please!!!! Thank you!!!...keep reading

Tax Question: I inherited my husband's estate and want to pass some or all of it to our children, grandchildren, and great-grandchildren. Can I do so without them being liable for inheritance tax? The legacy has been in my bank account for only two weeks and has never formed part of my estate....keep reading

Question: A mother X gifts her daughter Y her house. The daughter moves in with her even though the Y has another house (her main residence). X becomes disabled. X pays all the utility bills. Y pays the other expenses. Y owns the house outright. They live together for more than 15 years. X dies. Does the whole house or half the house belong to Y estate?...keep reading

Tax Question: Hi, Is there a minimum period of time a donor of a business must survive for in order for the recipient to be free from any tax liability? thanks...keep reading

Tax Question: For the following part time business of (a) mini cab business (b)lending short term finance at market rates to his friends and associates. (c) rare stamp dealing. Are these iht qualifying assets for BPR?...keep reading

Tax Question: Sirs, Does a person who reside in England has to pay inheritance taxes on shares of foreign companies inherited from his father who is a foreigner not residing in UK knowing that there is no a tax treaty between the UK and the father's country. Many thanks...keep reading

Question: I have an inheritance tax question. Myself and my wife are both in our 80's. We have three children (both Sons). We provide financial assistance to each of them and want to ensure that the amounts we pay to them are exempt from inheritance tax. Our current annual income is 10 times the total "Gifts Out Of Income" to our 3 Sons. We provide financial help to each of them of around £5,000 per year. This includes the use of a credit card to pay for petrol and groceries, regular gifts of premium bonds and regulart cash transfers to a savings account. We want to make sure that we're OK to assume that these amounts will meet the criteria for the 'gifts out of income exemption' and that there will therefore be no inheritance tax charged?...keep reading

Tax Question: If I become Non UK resident and live in France can I nevertheless make a Lifetime Property transfer of a UK property[ 7 years to clear ]? The French "gift " period is 15 years and is limited to 100000Euros....keep reading

Tax Question: Can I gift cash to my children and then get them to loan it to me?...keep reading

Tax Question: I am not resident nor domiciled in the UK. I hold shares of UK companies in Jersey. Are these assets liable for UK Inheritance tax? Would putting these assets into an overseas company protect these assets from UK Inheritance Tax? Would the use of a Jersey trust assist in this case? Would the answers to these questions be different if I were not resident but was domiciled in the UK?...keep reading

Tax Question: Couple A have been non UK resident for 10 years. Their family home was a large country house and land in which their daughter and her family have continued to live. There is a derelict cottage on the property which couple A now intend to renovate and live in when they visit the UK. Couple A would like to gift the main house and land to their daughter and keep the cottage themselves. Can you advise the best way to achieve this....keep reading

Tax Question: if i gifted my business to my son in 2021 and my son continues in this business and i die in 2024. Does this gift (a) form a PET and (b) form part of my estate in 2024 for iht purposes?...keep reading

Tax Question: Hi Lady [A] has received through inheritance a 1/3 share of a freehold property [2/3 to other two siblings] The other 2 siblings wish to gift their shares to Lady A also. Lady A then intends to keep the property and eventually pass it down to her children in her will. No money is to be exchanged at any time. Could you kindly advise on the Inheritance tax and Capital gains tax implications in this scenario on each of the recipients of the gifted property ie Lady A and her siblings to Lady A's children. Thank you...keep reading

Tax Question: Assuming property purchased with mortgage/loan from parents but after some years the parents decide to write the mortgage/loan off. What is the process to do this? 1) Can parents simply give a letter stating loan is written off? and what should the wording be? 2) Where should this letter be registered and within what period of time must it be registered? TIA...keep reading

Tax Question: Is it true that if a father (F) gifts the main residence £1m to a son (S) there would be zero CGT (due to PPR) and a PET for IHT which after 7 yrs will be zero, provided he also pay market rent for the accommodation (to avoid the reservation of benefit) until he ceases to use it eg. death or care home. If he dies before seven years does taper relief then apply?...keep reading

Tax Question: Could you please help.. My mother who lives in England has proberty in England and in Italy, she has already made a will leaving her English property to my sisters and her Italian proterty to me as i live in Italy, we are having problems making a will for Italy, but thats not what i needed to know. I am worried about the inheritanza taxes..do l have to pay English taxes aswell as Italian taxes..and the same for my sisters do they pay taxes on the Italian inheritanze .? Thank you for any advice...keep reading

Tax Question: My mother is 73 and Her assets are a flat worth 620k and cash of 190k. Father passed away around 35 years ago. We are 2 sisters what would be the best way forward to plan for IHT. Looking forward for your suggestions and tax implications....keep reading

Tax Question: I have a farm of about sixty acres which I have operated mainly with animals and arable for forty years and is excempt from IHT as agricultural property relief. As I am now approaching eighty years old and feeling the effects of those years of very long hours and hard work. I would like to branch more into holiday lets in shepherds huts and DIY horse livery. Would these operations effect the IHT status?...keep reading

Tax Question: I have 3 children. 2 of whom live in the family home and the 3rd lives abroad. They all own another rental property. I am looking sell 75% of the family home to them. Each will acquire 25% for £150k in separate transactions. How much stamp duty would each of them pay? Would they pay stamp duty based on £150k or £450k? Would those who live in the family home need to pay the additional rate?...keep reading

Tax Question: My father lives in New Zealand and has done so for the last 40 years, however he was in the UK, I live in the UK, would we have to pay IHT when we receive money from his NZ home....keep reading

Tax Question: What is the most tax efficient way to buy a UK residential property for a UK minor?...keep reading

Question: My older brother is fairly well off and has offered to buy some premium bonds in my name. How will this be treated for inheritance tax purposes. I know that premium bond winnings are free of income tax but what about inheritance tax? What is the position in the event of his death and also at the time of the gift to me?...keep reading

Tax Question: When looking at where assets are held for a EPT periodic charge calculation I am aware that for shares it is the registration of the shares that is important. If the UK shares are managed by an investment manager who is using an offshore nominee (rather than a trading company) account does this change where the assets are held....keep reading

Question: I am a UK citizen and have lived here for over 7 years. Before that we lived in the US for over 20 years. I'm concerned about where my potential inheritance tax liabilities may lie (so I can the reduce it!). We have assets owned by us which are based in the US. This includes: - Bank accounts - US shares The income from the bank accounts is paid gross by the US and taxed in full in the UK. The US dividends though are subject to a 15% tax withholding in the U.S., but we then get a tax credit in the UK. What is the position for inheritance tax purposes under the Double Tax Treaty that exists between the U.S.A. and the UK?...keep reading

Tax Question: My wife is about to inherit some cash money and a share in property from her father in Jersey in the Channel Islands. This will be in the region of £500,000. Taxes will be paid on both aspects within Jersey but will she be liable for any inheritance tax in the UK...keep reading

Do you think that a gift of cash from an overseas (Jersey) bank account by a non UK domiciliary to UK beneficiaries would be exempt for UK inheritance tax purposes? If not would it be a PET? Note that this will be an electronic transfer of the cash (not a cheque). Does it make any difference?...keep reading

Tax Question: I understand that Canada does not have any form of IHT. However, should a resident of Canada dies certain assets are deemed to have been sold prior to death. If the deceased is a UK domicilary who would also have to consider such assets in the UK, do HMRC allow any deduction against the possible UK IHT liability to take into account any Canadian tax paid? Many thanks...keep reading

Tax Question: 1) Can you claim business property relief for inheritance tax purpose if your company runs a hotel business?it says land and buildings are excluded but hotel is a business....keep reading

Tax Question: Hello, my parents are looking at re doing their wills to save on inheritance tax. For the past 5 years i have been living in their home, covering my own expenses. am i correct in thinking that if they leave me this property in which we all live in their wills that it will be inheritance tax free? if not what will be the most tax efficient way of arranging my inheritance, as if the tax is too great i will have to move out anyway....keep reading

Tax Question: How does a family investment company mitigate inheritance tax and how does it cost to form the FIC and what are the ongoing cost?...keep reading

Tax Question: I live with my Father in our private residence which he has owned outright for the past 10 years [he is single and divorced my mother]. About 5 years ago he gifted me half the property and we are "tenants in common" with use of a solicitor. He has made no other PETs or Lifetime gifts. We jointly pay the bills and for maintaining the property. The property is valued today at around £1m As he continues to enjoy some benefit in the property my questions are this: 1, Would IHT be liable on the value of the whole of the estate above the nil rate band on death because it is a Gift with Reservation of Benefit. 2, If my Father became a lodger in the house and paid market rent for a room would that take the transaction out of being a GROB. 3, Is there a chance he would be caught by the Pre-Owned Assets tax charge?...keep reading

Question: Property investment co valued at £2m, client(mother)owns 30shares , two daughters own 25shares each. Client wishes to transfer say 20 shares to daughters. It has been suggested that the issue of deferred shares to the daughters with rights only to transfer into ordinary shares at a future date can achieve the transfer of value without IHT/CGT consequences. IS this possible and how in practice does it work....keep reading

Tax Question: My father died 6 years ago leaving my mother his assets which was half of her existing residence.she also owns a cottage which has been in her family for many years,is his inheritance tax threshold still available to use on her death?thanks ianb...keep reading

UK Inheritance Tax My wife and I are both British Citizens. We claim South African domicile and have been retired and resident in Australia for the past 13 years on 410 Retirement Visas. During this time I have not visited the UK. My wife has paid two brief visits. Our income is UK generated from Superannuation and Old Age Pensions. We also own a property which was our Principal Residence until leaving the UK and which has been tenanted since our departure from the UK. Income Tax on our UK income has been paid to HRMC and non-residence has always been claimed on our UK tax returns for the past 13 years. In the event of our deaths we intend to bequeath both our English and our Australian assets to our son who lives and works in Switzerland, is a British and an Australian citizen, and was also born in South Africa. Our British assets, all in joint names, will easily be shielded from IHT by the UK Inheritance Tax allowances. Would you please advise whether our Australian assets w...keep reading

Tax Question: A Question based on the below post and response ....Tax Question: On page 171 of your excellent book "Non-Resident & Off-shore Tax Planning" on page 171 you write the following: "The UK only has a small number of inheritance tax double tax treaties (11 in total). In some circumstances, exclusive taxing rights in relation to the sort of property caught by the new rules (for example, shares in a company) would be allocated to the other country. The draft legislation includes provisions which override these treaties unless the other country charges inheritance tax or a similar tax and there is actually some tax to pay (however small) in that country. So, for example, if an individual is domiciled in India (where there is no inheritance tax), the treaty will not assist." Could you please direct me to the draft legislation (section numbers etc) which contains the provisions to override the treaties unless the other country charges inheritance tax or...keep reading

Tax Question: UK Dom /non resident transfer of overseas money and property to Non Dom spouse / Non resident. If transfers exceed the NBR, the Non-Dom spouse could consider to undertake a IHT Death election, in consider prior own assets as applicable. . 1. considering the Money transfer the UK Dom spouse received no benefit, bank account control etc. Would therefore likely not fall under IHT consideration or is it still deemed a PET subject to tapering? 2. In relation to the property transfer could this be considered a GWR; if the transferee resided in the property at any point after the transfer. 3. Would spousal election negate the GWR and not subjected to IHT. 3. If the property was rented the proceeds where utilized in any part to support to household outgoings or for child education costs would establish a GWR situation. thanks...keep reading

Tax Question: Although not a time we look forward to we are trying to work out an inhertance tax issue. My wife will one day inherit a sizable sum when her mother dies in the US. All of the estate will come from the US and will also be shared with my wife's siblings there. My wife is a dual US/UK citizen living in the UK. What are the UK tax implications of this given that I believe in the US, the entire estate will be subject to inheritance tax there, before any is sent to my wife. Does the UK accept that inheritance tax has already been paid or will the HMRC require tax be paid in the UK as well on the already US taxed sum? What if the amount inherited was not brought into the UK? My wife's mother has also loaned money to all three siblings. Will those loans be considered as part of the estate and taxed (either in the US or UK) or are loans handled differently for tax purposes?...keep reading

Tax Question: Assets held outside the UK are not subject to UK Inheritance Tax for those who are not domiciled in the UK. Are the Channel Islands considered to be outside the UK for tax purposes?...keep reading

Tax Question: Dear Sir, I purchased an apartment bloc in Switzerland some 30 years ago and all the apartments have been rented out. Some twenty years ago I gifted the property to my two children which is now well outside any potential inheritance gifts tax. I am currently considering agreeing with my children to use one of the apartments rent free as a holiday home when visiting Switzerland. My daughter who also lives in one of the apartments suggested for us to make some Swiss legal provisions to have rent free use of this holiday apartment as a possible permanent home to enable her to look after us in our old age if and when required. Could you please advise me whether by using the apartment for the occasional week rent free and making legal provision under Swiss law as a permanent home would have an adverse effect so far as the original gift is concerned. Many thanks, Columbus...keep reading

Question: A widow in his 60's has assets of around £300k, including a 2nd home, rented out(£6k per annum) worth about £120k and acquired 10 years ago for £30k.He wants to ring fence this property by putting it in trust for his son. What are the respective advantages /disadvantages of using a non-settlor interested discretionary trust as against a flexible gift trust, in relation to 1.capital gains tax on the transfer to the trust 2income tax on the rent 3.iht (he is not too concerned about this as he does not expect his estate to exceed the nrb threshhold thank you...keep reading

Tax Question: An individual owned 80% of a trading company shares. He set up a Discretionary Trust in 2017 and gave it 10%. For IHT the transfer would be the loss to his estate i.e. the difference between the values for owning 80% and 70% but the gift was covered by BPR so it did not matter. The Trust is about to sell all the shares and in due course will make capital cash distributions to the beneficiaries. I am looking at exit charges before the 10th anniversary. In that calculation is the value of relevant property immediately after the settlement commenced to be taken as the loss to his estate or the actual real value to the Trust of the 10% shareholding on its creation?? There would be a significant difference between the two - the NRB would not fully cover the loss to the estate value but would cover a real value of 10%. I assume the BPR will be lost as soon as the shares are sold and the trust assets are purely cash?...keep reading

Tax Question: Revocable Life Interest Trust Hi, I am currently in process of creating a pair of wills for myself and wife. Considering life interest trust as the vehicle for providing for our young children if we both die. Having read 'Tax planning with Trusts" I favour making the trust revocable. The amounts in the trust would be over the nil band IHT rate. However, the advice I have been given is that if the interest payments to beneficiaries are stopped then any other disbursements from the trust will be subject to an additional IHT charge (as the trust will then be discretionary). I have clarified that the trust should remain 'life interest' but that interest payments could just be delayed, for payment at some later date. I await clarification on whether that is an acceptable solution with no additional IHT charge when assets exit the trust, but would appreciate any further clarity you can provide on this scenario. Thanks and regards, Tim...keep reading

Tax Question: My question is regarding inheritance tax and who it is due on.My father passed away in a South Asian country and I am due to inherit money and property.My father has no connection to the UK i.e. he was not born here, was never resident in the UK and has no assets in the UK.I will have been in the UK for 12 years by October 2016.From my understanding as my father is a non-UK national and all of his estate will be disposed of in said South Asian country he would obviously not to liable to UK inheritance tax on this.However, as I would be classified as resident in the UK (living in the UK for more than 183 days of the year) would I be liable to pay inheritance tax on whatever I inherit from my father if it goes beyond the tax free threshold of £325,000 for inheritance tax? Or does the fact that I would be considered non-dom mean that I would not be liable to pay UK inheritance tax? I would be grateful for your help on this matter.Many thanks....keep reading

Tax Question: Parents move into son's house and give money to help with renovation work (approx GBP100k): - 1. Would this be seen as a gift with reservation of benefit for IHT purposes? 2. Could it create an income tax liability for the son if it was considered to be "quasi-rent"? The amount will be paid directly to the builders. Are there any other implications?...keep reading

Tax Question: A man with a UK domicile of origin but now non domiciled holds UK residential property through an offshore company.He gives the shares in the offshore company to his adult children whilst non domiciled. Am I correct in assuming that for IHT purposes this is a gift of non UK situs assets by a non UK domicile and hence excluded from IHT on his estate even if he is later becomes resident in the UK under the Statutory Residence Test and is deemed to be domiciled in the UK.when he dies.?...keep reading

Tax Question: How can I establish whether the UK tax authorities would accept my claimed non domiciled status for UK Inheritance Tax purposes?...keep reading

Tax Question: what would be the best way to gift a substantial sum to be invested for a 4 year old disabled child in order that they could receive the money or income from it when they become an adult....keep reading

Question: My 70 year old mothers' savings ran out a year ago. Instead of downsizing her mortgage-free property, she has taken out a joint offset mortgage with myself, allowing her to borrow up to £250,000. She will probably inherit some money sometime in the future from her mother allowing her to pay back the loan and can then reevaluate her long term plans. Because of her age, she was unable to get a mortgage in her own name. The house is soley her own and the mortgage, although in joint names, is for her benefit only and she is to repay it. Is there something we can do to ensure that, should my mother die with the mortgage not redeemed, the full mortgage is deducted from the value of her estate before IHT is paid? (ie not just her 50% share)....keep reading

Question: Hi A friend of mine (UK resident and domicile) received a personal loan a few years ago (quite a large amount) from a very close relative abroad (non-UK resident and non-UK domicile). This relative is now on his death bed, and he said he doesn't want the loan to be paid back. As far as my friend is concerned, what does he have to do? Are there any UK tax implications? can a loan become a gift? I don't think there is any piece of paper to say that the original transfer was a loan, it was done on trust. So I guess no one can legally ask for the money back. Thanks for your help...keep reading

Tax Question: What is the inheritance tax due on UK residential property bequeathed by a non UK resident parent to his UK resident child? Would the tax be different if the property were held by an offshore company owned/controlled by the non UK resident parent?...keep reading

Tax Question: Hi, I have a question about property that has been moved into a LLP. Firstly, if you were to introduce other members, is there any tax planning strategies where CGT could be avoided? In addition, is there any advantages of a LLP structure when it comes to inheritance tax? Thanks...keep reading

Tax Question: Hi. Assuming that an offshore foundation was established in May 2010, by a non UK res at that time, with no UK assets and two UK residential properties were then acquired in 2014 and 2015 when will it be time for the ten years charge? Many thanks....keep reading

Tax Question: Do commercial property and nursing home investments fall under inheritance tax?...keep reading

Tax Question: Is commercial property in uk captured under IHT?...keep reading

Tax Question: An adult dependent child has always lived with his parents in the family sole main residence. The parents wish to transfer part of the ownership of the family home to the adult dependent child. What are the tax implications?...keep reading

Tax Question: Gifting from surplus income Gifting out of surplus income can be used to pass on gifts not subject to Inheritance tax on a regular basis. Questions: * Gifting of surplus income is done by an individual. How are household expenditure and other forms of expenditure divided between spouses or partners? * HMRC guidelines indicate that income includes employment, pension, dividends etc. Does that include Venture Capital Trust dividends? (Is this purely dividends- or a mixture of dividends and capital?)....keep reading

Tax Question: An elderly lady owns a house in the UK. She lived in the UK for a few years decades ago but is now non-resident and non-domiciled in the UK (she lives in South Africa). She plans to leave the house to her daughter, who also lives in South Africa and has never had UK residence or domicile (although both mother and daughter are British citizens). What are the UK IHT implications? (There have been no other transfers of UK property and the estate will consist of little but the house)....keep reading

Tax Question: My wife and I are non resident. We have a house in the UK which my daughter and her family have lived in for 10 years. It is their only home. We stay in the house when we visit the UK. Am I correct in thinking that if we gifted our daughter 50% of the house it would not be a gift with reservation for inheritance tax? We have no plans to return to the UK but if, in the future, we did return and lived in the house would it become a gift with reservation? If, at some time in the future, my daughter moved out of the house would that affect her 50% share for inheritance tax?...keep reading

Tax Question: I am UK non resident but UK domiciled. In drawing up my UK will I want my benefactors to be my wife and my brother. What is the maximum I can leave my brother before inheritance tax is levied. I assume all I leave to my wife is taxfree....keep reading

Tax Question: I have funds in an Australian superannuation pension fund. My understanding is that when I become resident in the U.K., all distributions from this fund (Australia requires min of five percent pa) will be taxed as income in my hands (even though some share would be a return of my own investments). Based on this I plan to withdraw the funds before coming to UK. However, before I do so, I wanted to check - is it possible that if I kept the account, it would not be subject to IHT in the event I died n the U.K. before 75? Thank you...keep reading

Tax Question: Gifting from surplus income Gifting out of surplus income can be used to pass on gifts not subject to Inheritance tax on a regular basis. Questions: Gifting of surplus income is done by an individual. How are household expenditure and other forms of expenditure divided between spouses or partners? HMRC guidelines indicate that income includes employment, pension, dividends etc. Does that include Venture Capital Trust Dividends? (Is this purely dividends- or a mixture of dividends and capital?)....keep reading

Tax Question: Can the unused IHT Nil rate band be used by the surviving spouse, when on the first death all the estate is passed to the wife using the surviving spouse expemtion....keep reading

Tax Question: My questions concern a deceased person who was non-UK resident and non-UK domiciled. He was the sole shareholder and director of an offshore company (BVI). The offshore company has a UK bank account with significant funds in different currencies. The deceased had no UK assets in his sole name. He only ever been to the UK on occasional visits. Could you please tell me if an inheritance tax account needs to be delivered to HMRC. I assume that the bank account will be excluded property for IHT. Is that correct? Is there any other tax I should be thinking of, say income tax in relation to any interest in terms of the bank account....keep reading

Tax Question: Is a cash gift within 7 Yyars of Death a PET or a chargeable life time transfer...keep reading

Tax Question: Hi I have 100% shareholding in a UK trading property development company which I bought 9 months ago.. I wish to gift part of my shares to my wife (40%), son & daughter ( 8% each). They are all office bearers of the company. Please advice any tax implications and most tax efficient way to gift shares. regards vg...keep reading

Question: I want to gift a buy-to-let property to my son. Must I inform the taxman and must I pay CGT on the gift? The property was bought in 2001 for £310k and is now valued at about £400k....keep reading

Tax Question: Hi, I have a couple of questions please on property, IHT and CGT: 1. My mother inherited two properties in 1995, and subsequently gifted them to my father in 2010 for no cost. They have been married throughout. Can you please confirm the following: My father leaves the two properties to my mother in his will, then he passes away so she inherits them. If she then gifts them to me immediately for no cost, is there any CGT payable? I asked this a couple of years ago and the answer was that CGT would be rebased and so none would be payable, so just checking the legislation around this hasn't changed. 2. If my brother and I own 4 jointly owned (50:50) properties, is there any way to swap our shares in each around so we instead own 2 each 100%, without incurring CGT due to gifting the half shares to each other (assuming the properties are all equal in value)? I read that this was possible in some circumstances, such as splitting land into two sections, but not sure if it ap...keep reading

Tax Question: UK Inheritance Tax My wife and I are both British Citizens. We claim South African domicile and have been retired and resident in Australia for the past 13 years on 410 Retirement Visas. During this time I have not visited the UK. My wife has paid two brief visits. Our income is UK generated from Superannuation and Old Age Pensions. We also own a property which was our Principal Residence until leaving the UK and which has been tenanted since our departure from the UK. Income Tax on our UK income has been paid to HRMC and non-residence has always been claimed on our UK tax returns for the past 13 years. In the event of our deaths we intend to bequeath both our English and our Australian assets to our son who lives and works in Switzerland, is a British and an Australian citizen, and was also born in South Africa. Our British assets, all in joint names, will easily be shielded from IHT by the UK Inheritance Tax allowances. Would you please advise whether our Australian...keep reading

Tax Question: Hello, I believe if I make my " Last Will and Testament " into a trust and make my son the executor, all my UK property ( which are my only assets ) will become exempt from IHT on my death ? Does this also override the " 7 Year Rule " or does that still have to apply ? Thank you....keep reading

Tax Question: My wife and I are non resident of UK. I own several UK based commercial investment properties ( worth above £650 K. ). If I will these to my wife ( no taxes between spouses ) and after my death she sells them all and remits the cash OUT of UK, will there be any further UK liability taxes ? Thank you....keep reading

Tax Question: My father passed away on the 4th April, 2018 I presume it happened between 2006 and 2012 my parents transferred their house, jointly owned 100% over to my sister name only as one of the deed transfer documents show. However this is what is so strange and odd sometime in 2012 (finding out exact date) we do not know why, the property was then transferred back from my sister sole name to my parents names and my sister, therefore from 1 person to 3 persons. I believe this was done for the reason to avoid inheritance tax and other taxes due with my sister owning two homes and my parents home was not my Sisters main residence as my parents were still living at this property. , my parents gave the entire house value to my sister as a gift so after the 6 year tax gift ruling the house when sold after probate would go fully to my sister, and no other siblings being my brother and myself, when both my parents passes away, as no inheritance tax would be payable under the inher...keep reading

Tax Question: Hello, Your advice is still a little unclear re my last two questions dated 06/11/2018 and 12/11/2018 ; my wife and myself are both non dom or resident of UK. If I will/leave all my property assets in UK solely to my wife and after my death she sells them all and banks all the proceeds in our offshore home town, will there ever be any future tax claims whatsoever against her by the UK authority BEFORE her death or AFTER her death ? Thank you....keep reading

Tax Question: Inheritance tax A foreign national, not born in the UK and never been a resident in the UK. If he was to become a resident in the UK would his property and shares abroad be liable to the UK inheritance tax on his death? If yes, does it happen immediately after he become a UK resident?...keep reading

Tax Question: My question dated 06/11/2018 : You did not explain if there would be any UK IHT liability for my wife before or after her death ? I should have mentioned that the property sales would be above the £650K. UK IHT marital allowance after CGT was paid by my wife. Thank you....keep reading

Tax Question: Hi, My wife and I are non resident or domicile of UK. I have willed investment property ( in my name ) based in UK solely to my wife. After I die she will sell all the property and transfer all the cash into to her residency bank. Will there be any UK IHT tax liability ? Thank you....keep reading

Tax Question: Expect to receive about £70k from my mum in her WILL. What documents will HMRC require of me for tax purposes....keep reading

Tax Question: Hello, further to your 2014 article about 'diminution in the value of an estate' regarding IHT: I am non-dom and non resident of UK and hold a UK commercial property (no mortgage) in my name. If i transfer this to an offshore company which I own 100% in order to avoid IHT would there be any CLT charge for IHT or would it fall under the fact that there would be no diminution in the value of my estate? And what are the SDLT implications? If I transfer it at market value before April 2019 presumably this would rule out any CLT IHT charge? But would incur SDLT? Is there anyway to avoid both a CLT/IHT charge and SDLT on transferring this property to the offshore company? Thanks....keep reading

Tax Question: Hello, I am a non UK resident and non UK national. I own a flat in London that I want to transfer to my daughters. The flat was transferred to me 30 years ago and now I want to pass it on to my daughters who are all non- uk residents and non UK nationals. Are there any tax implications with that matter? Are there any inheritance tax or capital gains for them to pay? please bare in mind we are all non uk nationals or residents. Will they have to pay any tax if i pass away? What is your advise?...keep reading

Tax Question: For BPR (Business Property Relief) to apply, does a person need to have been involved or working with an unquoted company, or can he just be a passive investor (for 2 years) in that company? Would BPR also apply to shares in a Holding company, i.e. a company which just owns shares in an unquoted trading company? Thanks...keep reading

Tax Question: If 2 settlors settle (jointly owned) shares into a discretionary trust, the shares intially worth say £100k and say £400k after 10 years, would 2 separate £325k limits apply at 10 years, and hence no 10 yearly tax be due, or how exactly is the 10 yearly IHT periodic charge apportioned/calculated?...keep reading

Tax Question: My query is; Our clients, husband and wife would like to incorporate a commercial unit presently used by his trading company. The property has a value of £700,000, and a mortgage of £240,000. The trading company pays the mortgage interest in lieu of rent. Our clients' declare the rental income being the amount of interest claimed in the company and offset an equal amount of interest as an expense. On their individual tax returns the property income is declared as part of Land & Property pages, but a declaration is made in the white spaces that the property is held as a partnership business, for convenience it is declared in the land and property pages. There are two issues; Incorporation relief.. There will be CGT on the amount of market value not reinvested, i,e the outstanding mortgage, Confirm? Any way to avoid/ mitigate. Stamp duty; The property is held as a partnership but declared in the Land and property pages. Will this be an issue? Our client does ...keep reading

Tax Question: Hi - I'm looking to minimise my IHT between my 3 children on my main residence (it's worth over the NRB RNRB). Thanks Could my children purchase a share in the house at market rates (so my remaining share is equal to the nil rate bands) and I can gift the proceeds from the sale afterwards? If so, please correct my understanding below. - My children would have to pay stamp duty on the sale and the rate would be on the individual share rather than combined (i.e. if they each bought a share for ?125k no stamp duty would be payable even though the combined share being bought was ?375k - excluding the additional 3%).They would pay no other taxes and the capital gains basis for them (in case of any future sale) would be the price at which they bought - I would not have to pay any tax (capital tax, etc) since it has always been my primary residence since I acquired it - I would not have to pay any rent and could continue to live in the property. Would we need to split the bil...keep reading

Tax Question: IHT and CGT implications on gifted shares from non-resident to UK resident I am non-resident Brit - been so since late 80's. I live in Zambia, and have a business there - Zambia currently has no CGT or IHT. I would like to gift my UK resident brother some of my shares. Please can you clarify for me what the tax implications of this would be for both of us in terms of UK CGT and IHT in the case of: I am still around in 7 years time and non-resident - I presume that there would only be CGT for my brother on sale of the business based on the gifted value? I don't make it for 7 years from date of gifting, and check out in say 5 years time while still non-resident... Would my estate be liable for the balance of IHT due on the gift - and my brother liable for CGT on subsequent sale of the business? Or, if I did not make the 7 years, and was still living in Zambia at the time, would I be able to be deemed non dom so there would be no UK IHT on my Zambian assets? Would it...keep reading

Tax Question: Betty is disabled and living in a UK house owned by an offshore trust. Betty pays rent to the offshore trust. As such, Betty receives Housing Benefit along with other disability benefits. As there is no longer tax advantages in owning the offshore trust, and they are now paying ATED, the beneficiaries of the trust want to terminate it and have it held by a UK structure in a most tax efficient manner. Property is worth £750k. Here are the questions: (1) If property was transferred in to a trust for a vulnerable person (disabled trust), I assume there will be no entry charges, anniversary charges and exit charges - is that correct? (2) If property was transferred in to a disabled trust, can Betty keep paying rent so she continues paying housing benefit? What will the income tax treatment of the rental payments for the trust? (3) I assume PPR will not apply if the property was transferred in to a vulnerable person trust. Is this correct. (4) Can you suggest the best...keep reading

Tax Question: Thank you for your very concise answer. If that UK resident goes abroad and ,then being non resident makes a gift,would this count as a PET for IHT? What would be the position if he becomes non domiciled,please?...keep reading

Tax Question: Inheritance Tax Uk resident goes abroad to Switzerland,assuming he has carried out all the necessary actions and becomes non domiciled after 3 years. What is the position please, for gifts made prior to his departure? Thank you....keep reading

Question: My mother and father bought a property in 1972 for £12,500 and converted it into 2 upper floors of offices a ground floor shop and basement offices, each of the 3 'units' have been rented out since to a variety of small businesses. This provided them with a nice pension (full occupancy £21000pa). In Sept 2006 following a house move my mother gifted £85000 each to my sister and myself, then 18 months ago my father died (leaving everything to my mother). Now at 80yrs my mother has suggested that something needs to be done regarding the rental property, the upper floor offices are currently empty and the overall management is too much for her. Her plan was to leave the property and her house to her two children (my sister and myself) and split any savings between her 6 grandchildren. Looking at her estate she has approx £1m of which the rental property is approx £400k, her own home £300k and the remainder in various savings. She has suggested giving my sister and myself th...keep reading

Tax Question: Is it possible for the shares in an unquoted private limited company ["the Company"] to be free of IHT if the Company buys, holds and rents out residential and commercial property investments. If not is it possible to restructure the Company so that its shares do not attract IHT liability? If so what for does such restructuring take?...keep reading

Tax Question: My daughters partner is buying a property in Mallorca in their joint names, My daughter is not contributing to the purchase. What is their individual tax situation re GIFT, INHERITANCE TAX, ETC...keep reading

Tax Question Hi A foreign individual client has 50 shares in an offshore company, registered in Liberia which owns two properties in the UK. The client is elderly, and would like to settle the shares in a UK trust, to avoid disputes by heirs in the future. What as the immediate and longer term tax consequences on a non dom and,non resident person settling shares in an offshore company in a UK trust, presumably this will be relevant property trust....keep reading

Tax Question: My daughter who is divorced has a partner who is in the process of getting a divorce. He intends to purchase a property in Spain in their joint names. Could you please advise any tax complications for each partner. Both are UK resident. My best regards John...keep reading

Tax Question: Up until now the calculation of the 10 year periodic charge on discretionary trusts has used the IHT Nil rate band (£325k). Now that the new/additional residence Nil rate band has come into force does this potentially effect that calculation and if so how? Many thanks...keep reading

Tax Question: What is uk IHT position on non uk assets for a non uk domicile person( Indian) but long term uk resident now losing the non Dom status? Thank you...keep reading

Tax Question: Hi Will there be SDLT to pay if properties are transferred into a trust based on market value. Assuming each value will be over the minimum thresholds? Thanks...keep reading

Tax Question: My parents are UK doms and have a discretionary trust in the UK. Can this trust be moved to an offshore location? If so, will doing so provide any inheritance tax advantages? Thanks....keep reading

Tax Question: Is an IOM company liable to UK tax on its share of profits from a UK LLP?...keep reading

Tax Question: Hi Q. Off-shore Trust has made loan to Off-shore company who has in turn made loan to a UK resident company of which Mr A is a UK resident shareholder and beneficary of the off-shore trust. Settlor of the trust was non UK resident and non domicile. What would be the best way to give the above loan to the beneficary with least tax cost. Is there anything to watch out for re HMRC?...keep reading

Tax Question: Hi If a Singapore company receives dividends from a Russian company what would the withholding tax implications be please? It holds 40% of the Russian company.  Thanks  Jacz...keep reading

Tax Question: Hi what tax is payable by a uk resident, who receives income from a non resident discretionary trust...keep reading

Tax Question: Hello, I am looking to setup a new business venture selling websites to small business in UK and USA I am a UK Citizen and resident and will want to work from Thailand have the following questions; 1. should i trade as a sole trader then switch to a UK Company and file Non Residence? 2. Should I just set up a offshore company and simply trade offshore? 3. Would it be a good idea to have freelance sales people in the UK? Please give me your thoughts thanks...keep reading

Tax Question: If a ltd company is set up in Hong Kong and owned 50/50 split with a UK tax resident/NZ tax resident - how is this company taxed? Is it taxed as HK/UK or NZ tax resident? Is it possible to demonstrate this company as being managed in NZ without any FT staff there? Thanks...keep reading

Tax Question: Hello, 1) I would appreciate, if you could advice regarding LLP UK. If the LLP UK company (owned by two nonresident legal entities) is purchasing goods in UK and selling them overseas, is there any risk that LLP UK might be classified as permanent establishment in UK and should it have any affect on LLP UK partner taxation on profits overseas? Shall the UK LLP partners (non residents) be taxed according UK legislation, if this company would trade(purchase and sell in UK)? Thank you in advance...keep reading

Tax Question: An offshore company is beneficially owned by UK residents. It invests in UK companies . Is the best means of protecting the beneficial owners from tax on income and CGT a trust? Is there any point in making the trust offshore if the beneficial owners are UK resident? If the offshore company is a subsidiary finance company as it only finances UK operations can the UK company be the shareholder of the offshore subsidiary? If the shares of the parent company are held in a trust which is UK based are there tax implications on the shareholder ie the trust if no dividends paid and shares simply held?...keep reading

Tax Question: LtdA is a UK limited company. By moving LtdA's control and management offshore, for example, to Malta, leaving no permanent establishment in the UK but still with UK resident shareholders, am I correct in thinking that there would then be no UK corporation tax to pay on worldwide profits, with the exception of profits originating from the UK? In addition, could directors still be UK resident provided that it is clear that management decisions and control are exercised in Malta? If the first question is correct, would it be possible to do something of a Double Irish and also create an LtdB that is a UK resident limited company to use LtdA's IP to operate exclusively in the UK and pay LtdB a royalty for the right to do so and therefore reduce the overall (LtdA LtdB) UK corporation tax burden as LtdA would not be operating in the UK at all and LtdB would not be making much, if any, profit?...keep reading

Tax Question: Hi, I am looking into setting up a UK LLP with one member being a UK resident and domicile (potentially we can incorporate a UK limited company instead of individual membership) and another non UK resident/non-dom (again we are looking into involving an offshore company). The majority partner (over 50%) will be based in the UK. The services will be provided both in the UK and overseas. Control and management will be exercised jointly and from both locations (we can have management meetings both in the UK and overseas) Our concern is that UK LLP will be treated as a branch and overseas member will loose pass-through treatment. What should we bear in mind to avoid/minimise overseas partner paying taxes on all profits (including the ones arising outside the UK)? Many thanks...keep reading

Tax Question: Hello I am a uk resident\dom. I'm going to work overseas\offshore, for a U.A.E based company. The company will pay in to any bank account I chose. Is it possible start a start\open a non UK company with bank account abroad? I would give my services through my company, to the oil company, and then pay myself minimal wage from my company to my UK account as an employee. Leaving the remainder of the money oversea's in the company's account. (I would provide pay slips\timesheets as an employee) My life style would match my UK declared wage. If my pay to my UK account matches my pay slips\foreign work contract. Will the HMRC accept this as enough evidence of my salary to tax me on? What other info can they request? Is there any preferred place to open companies\accounts that HMRC find difficult to investigate or where the local government won't share information with the UK? Is a foreign umbrella company an option?...keep reading

Tax Question: Hi, I am considering starting a business which will sell health/supplement related products over the Internet. These products will be procured from manufacturers in US, and sold to US consumers. Warehousing and call center will also be in the US. Projections suggest first year turnover of around $1.3 million, and $330k net profits. My question is: what type of company structure will make commercial sense? I am a UK citizen and currently a Ltd company director (category: consultancy). Many thanks in advance Regards...keep reading

Tax Question: I live in Barbados, run a BVI based company working remotely for UK and US based clients.  1. Red the SRT I  have two ties- to the UK: Family (2 kids <18 with my ex) and >90 days in previous each of the three previous tax years. I can intend to spend less than 45 night in the UK over the current tax year. The Barbados Welcome Stamp states that I am not responsible for paying Barbados Income Tax for the year in here. Am I safely income tax free? 2. If I buy property in the UK through a company rather than directly would I avoid being caught by the accommodation tie element of the SRT? TIA...keep reading

Tax Question: A UK domicile, UK resident owns a UK registered company import-export company (general goods, excluding alcohol). The company pays UK corporation tax. And the same time the same person is setting up a wine importing company in Hong Kong. The Hong Kong Company imports wines to Hong Kong from Romania directly without any interactions with the UK. What the Hong Kong company taxation would be? Also, what the director taxation will be? How the tax situation will change if the director/owner of Hong Kong Company will be: a) UK domicile, Non UK resident. b) Non UK domicile, Non UK resident....keep reading

Tax Question: Good morning, Is my understanding correct that payments to a UK resident from an offshore trust matched with trust gains means that such payments will use up the accumulated gains in the trust. That is, only after all gains have been distributed would capital as such be reduced upon further distributions? Thank you and regards....keep reading

Tax Question: I am transferring the beneficial interest in rental properties I own by declaring a bare trust in favour of a foreign company The mortgages I currently hold will continue in my name. Presumably I will be submitting a return from now on in the name of the foreign company and accounting for the rental income as if received by that company. If so, what happens re the interest paid on the mortgages. I assume I may still deduct it from income. I have provided on the trust deed that for so long as the mortgages subsist and are paid by me, the beneficiary company will reimburse me . Will this suffice, or do I need anything else to be able to deduct it?...keep reading

I am individual UK resident but not domiciled. I have some funds in Jersey offshroe bank acc taxed under remittance basis few years ago and I also have funds in my personal UK bank account which were taxed in UK. a)If I set up company in Isle Of Man (IOM) and I will be director of the company and I will send 50K funds from my UK based personal bank acc to IOM corporate bank acc to make investment in company name will : - sending funds from IOM corporate bank acc to UK to make investment seen as remittance of my Offshore funds taxed under remittance basis ? - If latter I decide to withdraw inital funds 50K I sent to IOM company from my personal UK bank acc seen as remittance of my Offshore funds taxed under remittance basis ? - Or the only thing I need to watch out not to trigger remittance basis tax is not to mix my offshore remittance basis taxed funds with IOM corporate funds ? b) In IOM corporate tax is 0% .If I decide to make investments using IOM based company to invest...keep reading

Tax Question: I was made to understand that if the property is already owned by a non UK domiciled non UK resident it should not be transferred directly to a trust [or the nominee of a trust] as this would give rise to an immediate inheritance tax liability. If UK property is transferred to an offshore trust [or to a BVI Co that is already owned by an offshore trust] then it is considered as a chargeable lifetime transfer and IHT at 20% i immediately payable upon the transfer to the offshore trust. Is this true?...keep reading

Tax Question: Dear Sir, A discretionary offshore trust was established 3 years ago, from an unrelated settlor for my benefit (and for the benefit of my children). Since inception, the investments of the trust never made any capital gain or income, but actually the investment strategy of the trustee made a loss (also including running costs and legal fees). As a potential beneficiary, could I suggest a distribution of capital? Will be this distribution taxable? As I am a UK resident non domiciled, I'd be liable to pay a 30,000 GBP non remittance charge (in case opting for the NRB), but I am wondering whether this distribution of capital would just be free of tax. Thanks....keep reading

Tax Question: I have several shares in a uk startup business. After several false starts it would seem that an IPO will take place in the UK next year and the value of the shares should increase at least tenfold. Q. Can I protect these shares in an offshore trust or company until i decide how and when to invest the proceeds....keep reading

Tax Question: I am looking at setting up an offshore company (say in panama) to buy and sell publicly listed shares (for their capital growth rather than dividend income). The initial funds would come from a loan from my UK investment company. The intention is to allow the offshore company to roll over its capital growth without paying too much corporation tax. As the company is an investment company, would it need an overseas board of directors? Would it also fall under the CFC legislation?...keep reading

Tax Question: If an offshore company trades and income is then matched by reinvestment straight back into UK companies is there a risk of UK tax liability where the beneficial owners are UK resident....keep reading

Tax Question: a jersey company. shares owned by a swiss subject. company owns property in the uk. the property is rented out to a uk resident . the swiss person wants to transfer the shares of the jersey company for love and affection to her brother who lives in the uk. original acquisition cost 1m pound some 20 yrs ago today value 10mill pounds. disregard IHT .. property run as a serviced centre at present by way of a ltd partnership. rent is paid to offshore company . how will the position of the uk subject be effected by the transfer of shares...keep reading

Tax Question: I will be purchasing my former UK companies. I am now non resident for UK tax purposes and hold no shares in these companies. The first company provides on-line membership services via the internet mainly to UK customers. The shares of the UK company will be purchased and the trade then carried on by either my Maltese or BVI company. The former share holders will also receive on top of the sale price of their shares 5% of the new trading company, a total of 10% of the shares. The Maltese or BVI company will continue the trade via the internet with income being received outside of the UK. We will require however a UK client call centre for technical problems/advice for members. This will be independent of us and run on a commercial basis by one of the former shareholders, who will invoice accordingly. What are the possible implications of the permanent establishment rules and the possibility therefore of paying UK tax, and how is it best to overcome these? The other co...keep reading

Tax Question: I am about to start trading in Dubai. Buyer and sellers are both located there, I am acting as a middle man to facilitate that trade which will be in anything from educational products, equipment, computers, minerals etc. My question is that as the control of the company is from the UK, although I will need a Dubai based office and will be there every month to work in the business, will I benefit from having an Offshore Company or will I still be under UK tax rules for Income Corporation Tax?...keep reading

Tax Question: Hi. Assuming that an offshore foundation was established in May 2010, by a non UK res at that time, with no UK assets and two UK residential properties were then acquired in 2014 and 2015 when will it be time for the ten years charge? Many thanks....keep reading

Tax Question: Is a Maltese Trust considered a company under UK Tax Law?...keep reading

Tax Question: Hi there I am involved in a Spanish start up high tech company that is developing drones for industrial applications. We have set up a uk operations division which is designed to operate a service using the products created by the Spanish company. We also want to be able to draw on grants available in the UK and in spain. We are potentially looking into a holding company to own these 2 companies. The plan would be to channel potential profits into the holding companies to reduce tax. Ultimately we want to sell the whole enterprise in a few years (say 3 or 4) so would like to place the companies on a good footing for future sale in terms of low CGT for the 10 current share holders and an attractive tax regime for the future buyer. We would like advice on all this please....keep reading

Tax Question: I currently have my own limited company, of which I'm a sole director, which has an 8% sare in another limited company (let's call it the Master Company for clarity). My own company receives a monthly dividend from Master Company which is classed as Franked Investment Income and so no further corporation tax is payable. The majority shareholders of the Master Company are planning to make the company dormant and start a new company in Ras Al Khaimah (RAK). I will be offered an 8% sare as before. As RAK is a 'no tax' territory I need some advice as to how this will affect my position. I will remain a resident of the UK. The majority shareholders and decision makers are relocating to Australia. The Master Company provides online video production services, there will be no UK employees and the servers are hosted on Amazon Web Services. We currently have 2 small offices where self-employed admin/sales staff will work from. Is this enough to avoid having a UK permanent estab...keep reading

Tax Question: I am UK resident starting a company to provide services on a Europe-wide basis. For various reasons, this business will be based in Gibraltar. I am looking at holding the shares in this parent company as efficiently as possible with the option to become non-res in the future. Does holding the shares in the Gibraltar company via a BVI company make sense? Shares in the Gibraltar company would be acquired at incorporation at par. If, in the future, the a capital gain is made but no longer want to become non-res, is there anyway of benefitting from entrepreneurs relief despite the gain being made in a wholly owned offshore company? Answer:...keep reading

Tax Question: Hi, We are romanian citizens, residing in the UK for the last 13 years. We have now a company based in UK, doing short holiday rentals - luxury properties in Paris for mainly US clients. The trading is online only. Which kind of tax havens would you recommend for this situation? Is it better to have romanian or UK citizenship? Is it possible to have a meeting with an offshore tax advicer to discuss the options in detail? Thanks, Daniela...keep reading

Hi, i am looking at offshore tax strategies mainly for uk resident indviduals and companies and while reading around i am finding difficulty in answering the question that what ever tax strategy is used, in whatever jurdistriction, at some point extraction will be required, can you point me in the right direction, possibly a guide, that covers this for a uk resident. Many thanks...keep reading

Tax Question: I am UK domiciled but non-resident. I have an off-shore ltd company based in Belize and it charges a UK [non-associated] ltd company for work I perform exclusively overseas. There is no permanent establishment for the Belize company in the UK. I earn a salary from the Belize company. Is the off-shore company required to notify HMRC or fill in any tax form for the income received from the UK company ?...keep reading

Tax Question: Hi I am new to the site and having read your great articles, unfortunately i still cannot fulfill what i need to know. Therefore I was wondering if someone can point me in the right direction. I think it will be best to feed questions in, as and when to help myself digest it bit by bit. I am a UK resident (home owner and in the country average 170 days a year).I was in a fortunate position to claim SED seamans deductions before opening the company. I can still claim SED on my Income should I meet the criteria. Up until last year paid all taxes and received in most cases 100% bck each year. Reason for having the company is for liability as I am in the offshore Oil and Gas Industry.I am not here to avoid tax but obviously use what's provided to lessen it. I have setup a Limited company in Belize, being paid into the company in USD and other foreign currency where appropriate.My work is 100% otwith the UK and no work is carried out within the UK.Here are my questions 1. ...keep reading

Tax Question: I am a UK resident and work as an estate agent getting commission from rental and sell of property within the UK. Is there any way I can reduce or eliminate my tax liability by having an offshore company formed say in the BVI, Panama etc?...keep reading

Tax Question: Hi. Here is my current situation. Aged mid-70s, non-dom. Not currently officially tax resident in the UK [been spending less than 180 days in the UK each year for the past 5 years]. However, with the new Statutory Residence Test, I will become UK resident. Currently, I don't have any assets in the UK apart from a house valued at GBP 600k. I would like to invest in commercial and residential property in the UK [to rent out]. My married adult children are non-dom UK residents. Here are my questions: 1] If I invest via an offshore company [say BVI-registered], would I be completely protected from IHT [not worried about deemed-domicile rule] given that I would be a UK resident? 2] If I invest via an offshore company, given that I will be the beneficial owner, would the company's net income be liable to income tax at the personal rate given that I would be a UK resident? Sections 714-751 ITA 2007 talks about the requirement for a "transfer of assets", but my asse...keep reading

Tax Question: I am a UK resident and I've made an investment in shipping containers which I'm going to lease to an Asian company. They will send me quarterly\monthly profits, I am looking into creating an IBC to reduce my tax bill. All the business will be done outside the UK. I am going to use a nominee director who will "control and manage" the company and sign contracts etc. I will remain as the shareholder. What is the best way to transfer the assets (containers) into the IBC ?...keep reading

Tax Question: I am a UK resident and want to transfer a UK property at nil consideration from my name to a offshore company with which I am not connected at nil consideration.What are UK CGT , SDLT and IHT implications for me....keep reading

Tax Question: If a UK non-resident, but UK domiciled, person forms a trust in an offshore jurisdiction with UK resident beneficiaries (children and extended family of settlor), would there be any additional UK tax implications, other than income tax for the beneficiaries on remittance/receipt of funds from the trust? Likewise, would there be any IHT exposure when the settlor died?...keep reading

Tax Question: Hello, I own a writing service in the UK. Everything online, no fixed establishment. Due to the fact that we mostly service students, we had to absorb the VAT charge when we registered. And now, we just got deregistered for FRS, substantially reducing our net profit. This is the offshore scheme we have devised: - Dissolve UK company and deregister for everything. - Set up new UK company [with UK bank and Merchant account] and Seychelles company with Cypriot Bank Account. Main reason behind this is the merchant account which would either be hard to obtain or too expensive for a Seychelles IBC. - Set up agency agreement between New UK company and Seychelles Company. UK company acts as a "Sales agent" on behalf of "Seychelles company". - UK company gets 5% o sales, and funds are remitted to Seychelles quarterly. UK company also helps disburse funds to UK based suppliers of Seychelles company [for 2.5%]. - UK company hires one Account / Sales Manag...keep reading

Tax Question: Can you transfer the shares of an offshore company owning two UK residential properties from a trust to a QNUPS without incurring any tax charge? Settlor UK RND for 7 years. Many thanks....keep reading

Tax Question: I'm a UK resident and planning to buy a UK property with my biz partner [UK resident] 50/50 we would like to set up an offshore company to avoid CGT in the UK when we sell the property [in 1-2 years] -ideally don't want to pay any tax and keep the money in that offshore company [reinvest in the future] What jurisdiction is preferable please and where to have a bank acc for that company? What is the best tax efficient way to take the cash out of that company in the future? Thank you for your response...keep reading

Tax Question: Can we use an offshore company for commercial privacy reasons only? Ie still happy to keep it UK domiciled etc. What would be the issues to look out for? Where's the best place incorporate ?...keep reading

Tax Question: Hi I am about to start up an online marketing company employing around 20 people. Mostly based in the UK but a few will be from abroad - India and USA. Revenue for the year is projected to be around £1.3 million with a net profit of just under £ 200,000.00 80% of the income/expenditure will occur from UK transactions and the remaining 20% from USA and continental Europe. I am hoping that someone will be able to give me a bit more information regarding corporate tax strategies. In the news, all we can hear is how big companies are saving on tax by establishing their companies in tax haven destinations. We are a very small company compared to those multi billion corporations but was hoping that there is something for us out there too. If we too can register the company offshore, do we need to : 1. Operate from that particular country but the majority of the business be still running from the UK. 2. Have some staff working from there (or director) 3. How to avoid ...keep reading

Tax Question: What is the position where ground rent is received by a non UK company, incorporated outside the UK and with no place of business in the UK?...keep reading

Tax Question: I am a UK resident and have an investment in a property development company in Mauritius . The investment has not,as yet, made a capital gain so is not subject to CGT on any sale . The company is being reorganised and my shares will be exchanged for loan notes and then again to shares in a new company. In the future I expect to make capital gains on the investment and wanted to explore the possibility of holding the new shares offshore to reduce future CGT tax liability. I have heard through friends that if I held the shares via a company in Cyprus any future gain would be tax free or max 10% ..........this so far is clear . When I asked them how they would get the funds back to the UK without them being subject to UK tax they said the Cyprus company makes a loan to you which is never paid back ! I would be grateful if you would let me know if this is possible and legal or if you have any other suggestions to use the company re-org to change the location of my owner...keep reading

Tax Question: I am in the process of establishing a company that will accumulates shares in publicly traded companies. The company will have its central management and control in the UK and a base of operations. It is expected that the shares will increase in value over time. We will be divesting small amounts of shares to cover operating expenses but the company is not expected to make significant profits. It will however accumulate significant assets. As the business grows it is possible we will move our operations outside of the UK. So we want to retain optionality over the tax regime we operate in. As I understand it, If we establish this company as a UK LTD then transferring operations would require crystallizing the gains and paying a hefty exit tax. Or relocating via a treaty migration, which would require CMC being physically established in a low-tax country. We are considering using a non-UK company in a country with lower tax regime, especially for CGT. Somewhere like M...keep reading

Tax Question: Q on Small Ltd. Business Formation Offshore: I am a UK Resident, non-dom until 2023 (at which point deemed domiciled) from the Netherlands. I expect to leave the UK by 2023 (to either offshore country, USA, or Netherlands). I have left my job, to set up a new company (an Ltd) in which I sell products in the USA via my own e-commerce website and online via Amazon. In future (1y), I may be interested to sell in Europe and UK too but sales will be <30% vs. US sales, and it's not a must. I would like to benefit from reduced reporting requirements, is it sensible to incorporate it in one of the offshore jurisdictions from a UK tax perspective? Are there any key implications (UK tax related) that I should take into account? Thank you...keep reading

Tax Question: An offshore trust settled by a non UK person with offshore Trustees owns the shares of an offshore company who owns a UK residential property. Will the Trust be subject to the 10 years anniversary charge bearing in mind that all the beneficiaries are UK rnd. Many thanks....keep reading

Tax Question: A UK resident/domiciled individual is the beneficiary of an overseas trust. The trust was established by the beneficiary`s uncle in 1988 in the British Virgin Islands. The uncle was Austrailan resident at all times until recent death and all Trustees have always been Non-UK resident. No distributions have ever been previously made to a UK beneficiary but the trust has now been wound up by the distribution to him of the entire funds - in cash. Under the rules it seems that the UK beneficiary is taxable in the UK on the full amount received ( as the trust accumulated relevant income and pooled capital gains exceed the distribution amount) and that the distribution is matched first with relevant income and then with pooled capital gains.Is that correct please? Secondly from a practical perspective where on the SA Tax Return is the beneficiary required to disclose the taxable amount and in particular how do you disclose the CGT rates to be used as the majority of the distr...keep reading

Tax Question: I understand that net rental income on UK properties owned by an offshore company is currently taxed at 20%. Is this a faxed rate irrespective of the amount of the income?...keep reading

Tax Question: Settlor Interested ? Mr A ( UK res/Dom) has recently found they are a beneficiary of a non res discretionary trust for last few years. Trust set up by non resident grandparents decades ago, now deceased.Non Uk resdients always , never Uk present. Trust has no Uk situs assets Seeking to identify what attribution of income or gains provisions may exist in respect of beneficiary distributions, as in the first instance trust settled by a non Uk person. No Stockpile records maintained ....keep reading

Tax Question: ?Offshore trust and attribution of gains Could you please advise whether the matching of trust capital gains to distributions is automatic or is it a specific action performed by the trustees? Also, is the beneficiary only required to declare the gain element through self assessment in the normal course or do the trustees have to inform HMRC of the amount of the gain element in some prescribed manner? Regards and thank you....keep reading

Tax Question: Hi Thank you for your advice. Having look at the tax on the dividend, if any distribution dividend from the Dubai subsidiary to UK holding company, the dividend will subject to tax in UK since Dubai is a low tax jurisdiction, am i right?...keep reading

Tax Question: I have a Dutch national client, long term UK resident, so deemed UK domiciled for IHT, taxable on worldwide income on an arising basis (never paid RBC) and from 6 April 2017 (subject to enactment) capital gains taxes on an arising basis. He has loans from two offshore trusts - one which he settled prior to becoming deemed UK domiciled, and one (a long-deceased Dutch aunt, never UK resident/domiciled) where he is the primary beneficiary. The loans were denominated in Euros in each case, which, assuming no change to the (devalued) exchange rate will result in a capital gain to each trust on repayment. Will he be taxable on any such gain in the trust he settled, (assuming tax changes take place as of 6 April 2017)? I am assuming he will only be taxed on the gain in the other trust if capital is distributed to him. Also, should he pay loan interest to the trust he settled (illogical) as well as the other trust, and if so, will he be taxed on that interest and would a d...keep reading

Tax Question: I am in doubt about your answer to my previous question. See follow up question below. Non dom and offshore trust - USERNAME: Pedro Bo - 02/10/2017 As far as I'm aware there will be a requirement for the trustees to report the formation and register the trust where there is a non-UK trust which has a liability to certain UK taxes in relation to UK source income or UK situs assets. BUT I AM NON DOM AND THERE IS NO UK SOURCE INCOME NOR UK SITUS ASSETS. IN MY CASE, IS THERE ANY REQUIREMENT TO FILE ANY UK REPORTS REGARDING MY POSITION AS SETTLER, BENEFICIARY OR TRUSTEE?...keep reading

Tax Question: I am UK resident, non dom. I wish to set up a non resident trust for assets I hold abroad. Must I report the formation of either a revocable or irrevocable non resident trust to HMRC? If I am a trustee of the trust? If I am a beneficiary of the trust? Will I owe UK income tax or CGT on any income received from the trust as beneficiary if I do not bring proceeds into the UK while non-dom?...keep reading

Tax Question: At the last minute the HMRC removed from the 2017 Bill the proposed CGT "re-cycling" provisions by means of which payments made by non resident trusts to non resident beneficiaries which were subsequently paid to UK residents during the following three years would be treated as if the payment had been made direct to the UK resident. I cannot find any reference to the three year period in the new draft covering these provisions published on 13th September. This suggests that as well as appointing the assets to the non resident beneficiaries before 6th April 2018 it will be necessary to gift them onwards to the UK residents by that date. Do you agree and are there any other changes in these provisions that I may have missed?...keep reading

Tax Question: What are the tax implication of living rent free in a property owned by an offshore company whose shares are owned by an offshore trust. I shall point out that I'm neither a Director of the company nor a Trustee....keep reading

Tax Question: Hi We have a client his holding company is registered in UK and they have a subsidiary in Dubai (UAE). May I know what are the main tax treatment and accounting considerations of the following activities will have impact on the UK holding company? 1.Investment in wholly owed subsidiary based in UAE 2.Interest and dividends on investments 3.any restrictions on transfer cash and to from subsidiary company 4.Tax on the interest on short term deposit Is there any CFC rules that apply to our client such as how the profit and losses are treated? Is there any statutory requirements that need to be complied with in relation to the transfer of funds to and from UAE? Is there any restrictions as to the activities that a holding company can have? Can the holding company partake in treasury activities such as short term deposits? Is the group account needed? What are the considerations for consolidation and is there any exemption that can be applied for non-consolidation? ...keep reading

Tax Question: Will withholding tax be applicable to int paid to an offshore pension fund or offshore company? the relevant loan is to replace a bank loan on a property outside UK. the payer is a UK resident and ordinarily resident. thanks a lot...keep reading

Tax Question: I am no longer tax resident in the UK and although I still manage a company in the UK I am no longer a Director or shareholder of that company. I am currently tax resident in Spain but I am potentially looking at relocating to the Far East (Thailand potentially). I have a Director and a staff Member still based in the UK that are paid out of the UK Company. I then have Consultants in Spain and Thailand that I am looking to pay through an Offshore Employment Company. So the offshore Employment Company will invoice the UK Company and then the Employment Company will pay the Consultants that are all living and paying taxes outside of the UK. I have read through the many articles and books on where to locate the Offshore Employment Company and have spoken to an Offshore Company Formation specialist and they have suggested Hong Kong as a good location. I am struggling to pin point the best location though. Am I overthinking it and potentially any Offshore location would wo...keep reading

Tax Question: With regard to a non-resident, excluded property trust where it is not settlor-interested and there is no UK arising income, is there a liability to an ITA 2007 s720 or s731 charge if a UK-resident beneficiary receives an income payment from the trust, and if so on whom does this liability fall?...keep reading

Tax Question: In 1972 I formed a Gibraltar Company. The registered shareholders of the Company are 2 nominee companies as bare nominees for me. I am the sole beneficial owner of all the shares in the Company under the terms of Declarations of Trust [one from each of the nominee companies]. In 1976 I provided all the funds to the Company to purchase a house in England, which my wife and I have occupied ever since. I have paid all the maintenance and running costs. I have not paid any rent to the Company. The property is in the name of the Company and is delcared in its annual accounts. I now wish for the property to be sold. However my accountant is of the opinion that HMRC could demand CGT, on the grounds that the property is owned by the Company - not by me. In this event, the taxable gain would be in the region of £1.25m. In an attempt to resolve the situation, the Company proposes to issue a further Declaration of Trust, acknowledging that the property is held by ...keep reading

Tax Question: If the Revenue are successful in applying income under s720 then what class of income would this be Would it be classed as dividend income or what other class of income would it come under...keep reading

Tax Question: Hi there, I am a 50% shareholder/director of an offshore company and I am UK resident. All business is conducted offshore. The other 50% shareholder is non resident in the UK. Control can be shown to be more in the hands of the non resident shareholder/director I would like to pay my wife?s UK limited company for accounting services [yes, she is qualified]. She is also UK resident, and is the sole Director and employee of her limited company. Do you think that this would draw the attention of HMRC? Would it help them to establish a case that our company is domiciled in the UK? Regards, A...keep reading

Tax Question: My question relates to a discretionary offshore excluded property trust which is not settlor-interested and where the settlor is non-domiciled but UK resident. Would adding, at some time in the future, the settlor (when still UK-resident) to the list of beneficiaries cause HMRC to consider the trust as settlor-interested from the outset or only in the tax years in which the settlor is a beneficiary?...keep reading

Tax Question: I am finding it impossible to obtain definitive advice on the question as to who pays the income tax charge relating to an offshore settlor-interested discretionary trust when the settlor is UK resident. Is it the trustees, the settlor or in fact both (as HMRC guidance seems to allow)? If the settlor pays, is it at personal tax rates or the rates for trusts and if both pay does the Settlor claim relief for the tax already paid by the Trustees (or vice versa)? When the tax charge is settled by the Trustees and/or Settlor, does ESC B18 allow a beneficiary relief for (or refund of) all the income tax already paid?...keep reading

Tax Question: We have a Client who set up his BVI company several months ago and now wishes to commence trading. He is Australian born but based in the UK and his Clients will be worldwide. If he were to visit the BVI to comply with UK offshire requirements does this need to be by a certain date? And what else does he need to do to ensure that his company has offshore status? Many thanks for your time....keep reading

Tax Question: UK LLP controlled by a IOM Private Interests Foundation (PIF). The PIF council is made by IOM corporates (provided by the IOM registered agent). The PIF protector is myself UK resident non dom with remittance base. Question. My bank required me to complete the CRS (common reporting standard). Due to the fact the CRS require the name of the natural person who at the end control the structure I should provide my name - I suppose -. Well, no problems in general on tax side due the LLP runs the full business outside the UK but what could I have problems on the "Managed and controlled rules" side providing via the CRS I'm the controlling person ? Pls note when I'm in UK any LLP document is signed by my father (non UK resident), when I'm outside UK I sign the LLP docs in person. Thank you....keep reading

Tax Question: I am a Belgian national . Lived in the UK from 1984 to 1996 .I cam back to the UK in 2010 . In 2006 I created an offshore company in Jersey .I expect to sign a consultancy agreement with Cyprus based company . Since I do not need the income , can I just leave it in the Jersey company and pay tax on it when I withdraw money in the future ? kind regards willy...keep reading

Tax Question: My question concerns the tainting of funds in an Excluded Property Trust. Should such a trust extend a loan to a UK tax-resident beneficiary (on a non-concessionary basis), would subsequent repayments (both principal and interest) directly back to the Trust from the beneficiary's on-shore account taint the otherwise clean funds lying in the trust? If so, would routing the payments via an offshore account of the beneficiary avoid such tainting?...keep reading

Tax Question: My wife has recently established an excluded property trust and both her (non-domiciled) and I (domiciled) will become UK resident for tax year 2017-18 onwards, after a considerable period of non -residency. I have built up a substantial debt to my wife, via loans to me, the proceeds of which I have used to establish a property portfolio in the UK. I now wish to liquidate the property portfolio and repay my wife. She will then place those funds in her excluded property trust. I understand that excluded property can be added to her trust until the point she becomes (deemed) domiciled, but, being a trustee, the cut-off point for adding funds will come forward to the point at which she becomes resident in the UK. In order to give me a longer period in which to dispose of the property, I am thinking of taking out a bank loan against the property (UK situated), repaying my wife with the proceeds of that loan and repaying the bank loan when the property is sold. My wife woul...keep reading

Tax Question: I have a UK Domicile of Origin, left the UK at age 25, 35 years ago, and for the last 30 years have had a Domicile of Choice in a Caribbean nation. I do not intend to return permanently to the UK. After my father died 9 years ago my mother gifted me their family residence. A month later I transferred it into the ownership of a Caribbean company. She has a registered long lease on the property and pays the company a market rent. In anticipation of the changes with respect to the new IHT rules surrounding UK residential property I intend, before April 5th, to settle into two trusts 1/3 of the shares in the company each to my sister and my brother. I will not have any interest in the trust, my sister and brother will be life tenants entitled to the income from the trust and, where the trustees agree, to transfers of capital from the trust. The ultimate beneficiaries will be my sister's children and my brother's nieces and nephews (which phrase includes my children). My ...keep reading

Tax Question: Dear Sir, assuming the following situation on an offshore discretionary trust: - UK non dom settlor created the trust by contribution in specie of an offshore company A, with cash holdings equal to 100 (no direct cash is ever contributed to the trust) - each year since in the trust the company makes a loss and the value of its net assets goes down to 90 (no income at all or capital gains are ever made) - at a certain point in time, the offshore company is closed down and 90 in cash minus costs are received by the trust (from the winding down of the company) - during time the cash is not invested and does not generate any income or capital gain - at a certain point in time, considering costs and fees, the cash holdings of the trust are 70 (a loss in incurred over time) - Overall, when the settlor created the trust the value was 100, but it is now only 70 (loss made by fees etc and no trading ever occurred) Question: Would a distribution to beneficiary A (which is...keep reading

Tax Question: I am a non Dom & a nonresident non British and have uk residential properties held in offshore company, as the properties will come under IHT after April 2017, if I sell the property anytime after 2017 April what is the tax implication and is there any IHT ? also can I send the net amount out of uk? Also suppose the property is sold by the survival 2nd spouse would there be any IHT implication? The 2nd spouse is also a non Dom and non resident...keep reading

Tax Question: Are dividends which are declared in favour of a UK parent by a foreign subsidiary AND then declared as a further dividend to the ultimate holding parent offshore, subject to UK corporate tax? If so, at at what rate? Would making a loan up be a viable alternative to declaring a dividend? Thanks...keep reading

Tax Question: Dear WPR Team I am UK resident and I would like to invest in BVI based fund. As Uk resident I would be liable to income tax on any profits from the fund as fund has non reportable status in UK. In such case would it more tax efficient for me if I invest via company ? If yes can I set up offshore company (I will be Director) in BVI (or other tax haven country) and invest via this company and not be liable to UK corporate tax ? How would I need to structure such company in order not to be liable to UK corporate tax ? BR Martin...keep reading

Tax Question: Many thanks for the very lucid summary of the proposals re offshore trusts. My question relates to the situation where settlor (non-dom/non-IHT-deemed dom when he settled the trust) is deceased since 2002. There have been/will be no additions to the trust. Since settlor's death the trust has annually distributed all net income and gains to the settlor's widow, and would "need" to continue to do so as widow is a US citizen (UK deemed dom) and the US penalizes distributions of "accumulated"/non-current income and gains. 1. Would capital payments to the widow post-April 2017 be taxable to her under Sec 87 insofar as they would be "matched" with gains? [though the amount of gain might be less than the capital payment because of 2008 UK re-basing] 2. Would annual distributions of current (non-UK) income be taxable as income to the widow? Thanks in advance for any input you can provide...keep reading

Tax Question: We are a Mauritius based investment company with 2 director and 2 shareholder both Mauritian domicile and resident in Mauritius. One of the member also hold a British passport and have live in the uk for 7 years up to 2008. We want to invest in uk property. We want to have the Mauritius investment company as the shareholder of several uk companies that will ultimately buy residential uk property. Is it best to have one uk company holding all these properties or each property hold by different uk company. Of course as mentioned ultimate shareholder will be the Mauritius company. What are the tax implication: 1. Corporation tax 2. Income tax for the BO in uk bear in mind they will be director of the U.K. Companies 3. Capital gain tax 4. Stamp duty all property will be less than 300,000 each....keep reading

Tax Question: Hello I am UK tax resident and I would like to open USA registered company and I will be the Director.Then I plan to invest in USA trust via this USA registered company. I would liket o ask below questions : - Does such USA registered company is liable to UK taxes ? - If such USA registered company is liable to UK taxes can I deduct tax already collected by US IRS ? - What if tax collected by US IRS is greater than the one I should pay in UK ? Can I ask for partial repayment of tax paid from US IRS? I appreciate Your time Martin...keep reading

Tax Question: Hi Im needing a reply to how best set up a new company to utilise tax havens IBC maybe for a Usa investment product paying out every six months, I want to have the lowest tax way and avoid capital gains tax in any country if possible.The Us investment utilises buying and selling houses to create a profit for the investor. Thanks...keep reading

Tax Queston: Hi An offshore company is considering purchasing a hotel in the UK. The hotel will be operated by a specialist hotel operator on a JV basis. The offshore directors are aware that UK tax will be payable on the profits generated by the JV as it will be considered to be trading in the UK. However, if a UK subsidiary was created to enter into the JV agreement and the subsidiary leased the hotel and paid a commercial rent to the offshore company, would the offshore holding company be considered as having a PE in the UK by virtue of owning the subsidiary? If so, how could the offshore company avoid having a PE in the UK and what would be the optimum business structure to mitigate Capital Gains on any subsequent sale of the business?...keep reading

Tax Question: I am a UK resident non-dom. I settled funds in an offshore trust pre-2008 keeping income and capital segregated. Can I: a. borrow from the trust capital account at the prevailing market rate. b. borrow from the trust capital account interest free. What are the tax implication when the amount is then remitted to UK from an account that has never generated income. Many thanks....keep reading

Tax Question: I am a UK resident non-dom. I settled assets and mixed sourced funds in an offshore trust pre-2008. Can I borrow from the trust interest-free and, because the mixed source nature of the funds, how should I consider the nature of the benefit? Let's assume I borrow 300k, do I simply add 300k*4%=12k as additional income and get it taxed at 20 or 40%, depending on my tax bracket? Thanks...keep reading

Tax Question: Please need your professional advise on the questions below. Question 1 UK has signed a number of Double Taxation Avoidance Treaties with a large number of other countries (including US). These treaties waive the obligation to withhold taxes or minimize such obligation. Under such Treaty and under the Inland Revenue Regulations, can you please specify what would be the dividend tax to be withheld in UK (if any) in case a UK Ltd, operating through its permanent establishment in UK, pays royalties to a Delaware LLC corporation, which is beneficially owned 60% b a person who is a UK resident and who also owns 70% o the stock of the UK Ltd which a the royalty payor. Since the recipient of the royalties is a corporate entity, is such corporate entity deemed to be the beneficial owner of the royalties or are its stockholders considered as the beneficial owners of the royalties ? In other words, how does the HMRC interpret in this case paragraphs 1 and 3 of article 10 of th...keep reading

Tax Question: I am resident , non domicile ssince 2008 . I have a company in Jersay , created in 2006 . What are the tax implications , if any , if I borrow money from the company. ? Regards Willy...keep reading

Tax Question: I am looking at setting up an offshore company to hold 3 UK properties and would like some advice on whether it is better to transfer or sell the properties to the company, or does it matter. I am non-resident in the UK for tax purposes. The properties are below the SDLT levels. If I transfer the property to the company can this be done with a fixed value or would it be done at the current market value? I had the properties valued in April 2015, but if I transfer the properties with a higher value I can use my annual allowance and my wife's annual allowance, plus any capital improvements to reduce my CGT liability, which will reduce any future CGT liability for the company if there is any future increase in value. To reduce the company tax liability on the rental income I was intending to pay myself interest on the transfer value of the properties, however, if I have transferred the properties rather than sold them to the company can I still do this? My other option w...keep reading

Tax Question: Dear Sirs, I am Croatian resident and I have off shore company registered in Belize. This Belize company will establish joint ventures project with existing UK company [ owner UK resident ]. Reason of joint ventures project [ UK co. Belize co. ] is software development and maintenance [ by Belize company ] and sales marketing [ by UK company ]. For this joint ventures project UK company will open separate bank account in UK bank, on this account will arrive all income from software sales [ worldwide ]. We want to split all sales income to 20% fr UK and 80% fr Belize company. Of course, UK company will pay tax on his 20% icome but CAN we transfer, WITHOUT UK tax, the rest of 80% t Belize company bank account in Austria. Par example: if SW sales [ income ] are 100.000, UK company will pay tax on 20.000 but can UK company transfer 80.000 to Belize company bank account in Austria without any UK tax?...keep reading

Tax Question: Prior to SDLT a non UK domiciled and non UK resident husband & wife sold a London flat to an offshore trust of which they and their children are beneficiaries.The purchase price was left outstanding on contract.This interest bearing debt, which is not secured on the property, was settled on a second offshore trust with the same beneficiaries, with the object of exchanging a UK situs asset for a non UK situs asset excluded for IHT. The scheme relies on the deductibility of the loan in he first trust. Does it work?...keep reading

Tax Question: I have a client who is a a UK trading Company with substantial cash reserves (in excess of 5 Million pounds). They have clients worldwide with very few in the UK and it is now planned to set up a Hong Kong trading Company for commercial reasons (JV partner in China). It is proposed that the 2 UK directors/shareholders will be individual shareholders in the Hong Kong Company. It is also planned to set up an offshore Holding Company. A new UK Company is also being formed as 2 new directors/shareholders are to be brought on board. The existing directors want to remove the cash from their Company in a tax efficient manner. Unfortunately an MVL cannot be done due to a legal dispute over Intellectual property rights. Consideration is being given to a share exchange with the new Holding Company to crystallise a capital gain and elect to claim Entrepreneurs relief. I am aware of problems with large cash reserves for Entrepreneurs Relief but it is a purely trading Company ...keep reading

Tax Question: UK resident non dom with remittance base. I'm interested to buy a residential property in London. This property is held through an IBC. Could I buy this property buying the IBC share using my offshore unremitted income (held in another IBC) ? This way I will avoid SDLT and I could use the property to live there (paying ATED in this case)...keep reading

Tax Question: We have a client who have a UK based company which is trading.They are interested in forming a Holding company and want to find out whether forming a offshore Holding company or forming a holding company in france will be better than forming a holding company in UK as far as the tax saving is concerned. What are the tax saving which they will be able to make if they go in for offshore holding company. What are the advantages and disadvantages of having a offshore holding company. Thanks...keep reading

Tax Question: How to de-envelope a property held by a company In the above article - would CGT arise (if the property has been subject to ATED) when off-shore company is de-enveloped and dividend in specie is paid to non-resident shareholders....keep reading

Tax Question: Mr. X is a resident in a tax haven and owns 100% of the shares of an offshore holding company [which owns stocks and bonds] Mr. X gives 100% o his shares to Mr. Y who is resident non dom in the UK The directors of the company are all based offshore ; Mr. X keeps the control of the portfolio [which could be documented via a short private portfolio management agreement] 1. Can you please confirm that there is no gift tax in the UK [except inheritance tax should the donor die within 7y] 2. Is there any particular way to document the gift / any condition on the gift to make sure it is treated as such [it is a large amount] and non taxable if HMRC were to ask 3. Can you please confirm Mr. Y wouldn't be liable for tax in the UK on his shares as long as he doesn't get any distribution [or buy / sell the shares at profit] regardless of whether or not he is taxe on a remittance basis 4. Does Mr Y have any reporting obligation if he is not taxed on a remittance basis? What ...keep reading

Tax Question: I am looking into establishing a LLP in the UK as 50:50% prtnership with a UK limited company as the other partner. The partnership would operate a website distributing software online to customers worldwide [but also some UK customers]. The partnership would also distribute those products as boxed products via various resellers in different countries. We will have a UK based manager working part-time on the business as a freelancer, 1 UK based freelance developer and several outsourced developers offshore. All freelancers in the UK will work from home and there will not be a permanent office. Question 1: Would this business be considered a UK trade by Inland Revenue? Question 2: For my 50% sake I can either own it personally [I used to be a non-domiciled resident inthe UK from 2002 to 2009 but am now a non-resident] or through a Hongkong company [100% oned by me]. What is a better choice? Question 3: If I select a Hong Kong corporation to hold my LLP stake and we w...keep reading

Tax Question: I own shares in my private business incorporated in Asia and an offshore company and will be moving to the UK in summer 2017 as a non-dom. Everything is legal and reported to all relevant tax authorities. The private business operates exclusively outside the UK, so no UK tax involvement on a corporate level. 1. How will corporate assets owned be valued by UK tax authorities? Is it based on past financial performance or does it need to have an evaluation done by PwC/EY/KPMG/etc? 2. How is a new business that is just now starting to make money valued (future performance, market value, what method)? 3. Following scenario: I bring the shares from my private business A into the UK, and they are valued at GBP 10m. A few years later, I buy the shares from private business A with cash from offshore company B at the valuation performed a few years earlier at GBP 10m. 3a. Is the money still going to be tax-free as it's a conversion of assets from shares to cash (no capital gai...keep reading

 Tax Question Our company has surplus balance in our currency account. (US dollar)  due to a slowdown. We get a far better return on a fixed term if the funds are placed abroad for a fixed period of one year. However The funds have to be placed in a personal name with an overseas bank. Is it possible to place the deposit in  my personal name however on behalf of the company. The principal and interest will be transferred back to the company on maturity and reflect in the company accounts. The overseas bank is aware these are company funds and no tax will be charged abroad. We can make a private agreement, or even a trust deed from or solicitor or advise HMRC, which option you think is the best so they do not treat this as a loan given to the director....keep reading

Question: Having calculated goodwill being acquired by a limited company from a limited liability partnership, does the goodwill have to be reflected in the final balance sheet of the partnership accounts?...keep reading

Tax Question: dear wealth protection report i'm trying to understand what expenses i am allowed to claim for regarding company AGM meetings? if i plan to hold the company AGM in another location/city, book hotel accomodation, is the accomodation, food, travel expenses etc permissible as expenses? what would i have to do to ensure that i can prove that the purpose was for the AGM? kind regards...keep reading

Tax Question: Purchasing an up and running exiting website. The Website is capitalised and will be depreciated. Can a company claim capital allowances and use the AIA for the year ? Or if the asset an Intangible asset [and amortised], what allowances can be claimed ? Thanks...keep reading

Tax Question: If a director and shareholder of a company incurs significant legal costs to exit that business to establish a similar trade / business in the same sector, are there any grounds for those costs being allowed in the new company as an allowable expense?...keep reading

Tax Question: Can non-dom own shares of isle of man co or BVI co or Malta co and not have deemed distribution...keep reading

Tax Question: Hi, Co A is developing houses for rent and has been entirely funded by the directors. Upon completion, the company will apply for finance secured on the development so that it can repay the directors. Is it correct for the Co to claim tax relief for the interest payable on the loan? Thanks...keep reading

Tax Question: Can I set up an overseas company for the purpose of lending funds? Can I use these funds to either settle the existing mortgage or buy a new property for us to live? Is it also possible for that company to lend funds for BTL Property? What is the best jurisdiction to setup such a company and would you advise such shares to be bearer shares? Thanks,...keep reading

Tax Question: Is it possible to retain and carry forward tax losses accruing from a sole traders business when that business is incorporated? What impact if any is there on Incorporation relief provisions?...keep reading

Tax Question: The 7 year rule and gifting property to a limited company. What Taxes may the individual me liable for? And what is the best route to transfer property from the individual to a Ltd company?...keep reading

Tax Question: When a UK Limited has capital increase or capital reduction, it would only take effect after it registers it with Companies House, right? Otherwise it would be invalid if the company shows such capital increase or decrease in it's accounts....keep reading

Tax Question: What is the treatment for a property investment company that has Capital Allowances that go unused in the year of assessment? How can these be relieved?...keep reading

Tax Question: Dear wealthreport i have a company from which i do not take any salary or dividends. the earnings are retained by the company. if i wanted to take advantage of the childcare voucher scheme, could i take a salary for the amount of the childcare voucher - as a salary sacrifice - and still not take any other salary or dividend? thanks kind regards...keep reading

I have a Uk Ltd company and the majority of my travel and subsistence expenses are reimbursed by my major client in Italy. What is the best way to show these reimbursements in order to avoid they add up to my total turnover and increase my tax? Thks...keep reading

Tax Question: Hi What's the difference in tax calculations between transferring a property with no mortgage from a person's name to a limited company either a) as a gift with nil consideration vs b) as a normal transfer for market value consid...keep reading

Tax Question: Hi, I got a question about tax structure for SPV, company set up for investment purpose. If the company hold an investment property, and has a SIC code for property letting & management. The company then decides to invest into other assets such as shares. Assuming they are looking at purchasing shares and holding it for investment (not trading) Given that it's still an investment asset....does this change the structure of the company and how will tax be effected?...keep reading

Tax Question: Is an IOM company liable to UK tax on its share of profits from a UK LLP?...keep reading

Tax Question: Hi If a Singapore company receives dividends from a Russian company what would the withholding tax implications be please? It holds 40% of the Russian company.  Thanks  Jacz...keep reading

Tax Question: My brother and I are shareholders and directors of a property, limited private company. It holds valuable property, mainly commercial, for long term investment. We are both over 65 years old and have always had good relations and we still do. He wants to retire and I want to carry on. He has 49% and I have 51% of shares. What do we do and how to minimise tax and legal complications? Could we- having obtained property valuations by an independent valuer-, divide up the properties in the same proportion by value as our share holdings, and then he would have his properties in a separate Company or limited Partnership and I have mine in a similar situation. Since there is no individual gain or loss in value to my brother or myself, there has been no disposals and so, hopefully, no CGT implications. Do you perhaps have a better solution?...keep reading

Tax Question: Hi, 1. The royalties are sold to a UK company by a Hong Kong company, with a deferred payment. The royalties are then leased to a Ukrainian company and the Ukrainian company makes regular payments in respect of the royalties to the UK company. The UK company uses funds so received to repay the Hong Kong company the deferred consideration outstanding on the royalties. Are there any restrictions which apply to the above in the UK? Does withholding tax apply to the payments which are made from the UK to Hong Kong? 2. Does any withholding tax apply in the UK if interest on a loan is paid from a company in Ukraine to a UK company and then paid on to a company in Hong Kong? 3. If dividends are declared from a Ukrainian company to a UK company and on to a Hong Kong company, does any withholding tax apply in the UK? 4. Is there a tax on dividends which are declared in Hong Kong in favor of a non Hong Kong resident shareholder? Many thanks...keep reading

Tax Question: I am becoming a digital nomad and will be leaving the country before april this year. I have a UK company and would like to migrate that to malta for tax purposes. My company is a web application we sell on a subscription basis for thousands of customers worldwide. Our assets include our domains, custom software, customer base and brand. Regarding UK exit taxes, will there be CGT that I am personally liable for, or is it corporation tax due to asset sales? Or perhaps both? I was told by one person that the UK does not allow treaty migration so it would be asset sales (which I guess is corp tax.) Then another person told me that the UK absolutely did support treaty migration so I'm guessing that would be a share sale which is subject to CGT not UK corp tax? Hoping you can give me a definitive answer on this!...keep reading

Tax Question: In a small UK group of companies where the non trading Holding company is a company limited by guarantee with 3 member/directors, which owns 100% of a trading company with the same 3 people as directors, are there any circumstances in which the Holding company can distribute funds to the Members/Guarantors out of the retained profits of the trading company by way of a 'dividend' in the Holding company rather than as employment income in the trading company? Or any other way to get income out other than via salary? And/or is it possible for the Holding company to 'buy back' the beneficial interest of one of the Members for say a third of the company value and if so would that member get Entrepreneur relief as they have been a member for more than 2 years?...keep reading

Tax Question: I have a uk trading Ltd company with goodwill valued at £1.2m and tangible assets of 400k I wish to transfer the business to a newly formed UK Ltd company and retire from the business. The goodwill was purchased on incorporation in 2008 at a cost of £1m and CGT was paid by the vendor, ie me. I directly own all shares in both companies.If I transfer the goodwill direct to the new company will there be a taxable gain of £200k, or is this transfer exempt? If there is, can I avoid this by transferring shares in the new company from me to the old company befor transferring the assets? or by putting both comany's shares into a holding company?...keep reading

Tax Question: 1) Can you claim business property relief for inheritance tax purpose if your company runs a hotel business?it says land and buildings are excluded but hotel is a business....keep reading

Tax Question: If a ltd company is set up in Hong Kong and owned 50/50 split with a UK tax resident/NZ tax resident - how is this company taxed? Is it taxed as HK/UK or NZ tax resident? Is it possible to demonstrate this company as being managed in NZ without any FT staff there? Thanks...keep reading

Tax Question: How does a family investment company mitigate inheritance tax and how does it cost to form the FIC and what are the ongoing cost?...keep reading

Tax Question: Hello, 1) I would appreciate, if you could advice regarding LLP UK. If the LLP UK company (owned by two nonresident legal entities) is purchasing goods in UK and selling them overseas, is there any risk that LLP UK might be classified as permanent establishment in UK and should it have any affect on LLP UK partner taxation on profits overseas? Shall the UK LLP partners (non residents) be taxed according UK legislation, if this company would trade(purchase and sell in UK)? Thank you in advance...keep reading

Question: let's suppose it is established a UK LTD carrying on an online service business, and the directors/shareholders are a UK resident and a genuine non UK resident, business is made worldwide, managament is actually made by the two and directors meetings are held by conference call...where such a company would be deemed to be resident for Tax purposes? And what if both directors are non UK residents, from two different countries?...keep reading

Tax Question: Dear CTAs, When a EU company (non UK,and has double tax treaty agreement with UK) establish a UK company, how the UK company will be taxed? Will be the UK company(child of the EU company) considered as dual resident, so the UK company income will be taxed where the "effective management is situated"? Would this be true for every activity? Providing service (through the UK company,but outside from UK), doing e-commence, collect royalty? All of these cases the (Non-UK managed) UK company will be treaty non-resident by default, taxed in the management county? Thanks, Park...keep reading

Tax Question: I have a situation where a company was incorporated in the UK 5 years ago to provide telecommunication services to the UK market, i.e. mobile phone chips. Market is purely UK. The majority of the directors were UK based and staff based in the UK. As a result of the downturn in the market, only one staff remains and one director. Both staff and director are based in EU. The company still exists and services the UK market but staff are in EU. Is there a risk that the residency of the company could have migrated away from UK and to EU? Can it be argued that as the company is UK incorporated and services UK customers that the residency continues to be in the UK? the company is loss making. thank you...keep reading

Tax Question: In the UK LLCs are considered corporations and not fiscally transparent. If an LLC is centrally managed and controlled in the UK but has no branch nor trade there is it subject to CT? If it is so managed in another country will HMRC consider it resident there? If a member of an LLC is UK resident does he only pay tax on dividends and not his share of CT it being considered a corporation while LLC's home jurisdiction considers it fiscally transparent? Can the protector of an offshore Foundation be UK resident and still not be brought onshore? What powers do hmce have to determine if a Foundation manager exerts 3rd level management and control and if that Foundation just owns property and shares what does 3rd level involve?...keep reading

Tax Question: Hi - regarding apportionment of capital gains made by a foreign company that would be close if it were a UK company (s13 TCGA92). The HMRC manual states that there may be relief under the double tax treaty. However which paragraph of the treaty is relevant. For example if we take the Spain / UK double tax treaty? In addition, if there is apportionment, is double tax relief available for any foreign tax paid by the company. Thank you : )...keep reading

Tax Question: Corporation tax for a Branch in DIFC: A UK company has a registered foreign branch in the DIFC and makes an election to exclude profits i.e CTA09/S18A ; I'm aware that there some exclusions for some jurisdictions but please confirm if this is possible if the branch is set-up: 1. In the DIFC freezone? or 2. In UAE but outside the freezone?...keep reading

Tax Question: LtdA is a UK limited company. By moving LtdA's control and management offshore, for example, to Malta, leaving no permanent establishment in the UK but still with UK resident shareholders, am I correct in thinking that there would then be no UK corporation tax to pay on worldwide profits, with the exception of profits originating from the UK? In addition, could directors still be UK resident provided that it is clear that management decisions and control are exercised in Malta? If the first question is correct, would it be possible to do something of a Double Irish and also create an LtdB that is a UK resident limited company to use LtdA's IP to operate exclusively in the UK and pay LtdB a royalty for the right to do so and therefore reduce the overall (LtdA LtdB) UK corporation tax burden as LtdA would not be operating in the UK at all and LtdB would not be making much, if any, profit?...keep reading

Tax Question: Hi, I am considering starting a business which will sell health/supplement related products over the Internet. These products will be procured from manufacturers in US, and sold to US consumers. Warehousing and call center will also be in the US. Projections suggest first year turnover of around $1.3 million, and $330k net profits. My question is: what type of company structure will make commercial sense? I am a UK citizen and currently a Ltd company director (category: consultancy). Many thanks in advance Regards...keep reading

Tax Question: A company is trading shares, buy and sale of gold. Is this company looked as a trading company or investment company? I mean how HMRC will judge....keep reading

Tax Question: A UK domicile, UK resident owns a UK registered company import-export company (general goods, excluding alcohol). The company pays UK corporation tax. And the same time the same person is setting up a wine importing company in Hong Kong. The Hong Kong Company imports wines to Hong Kong from Romania directly without any interactions with the UK. What the Hong Kong company taxation would be? Also, what the director taxation will be? How the tax situation will change if the director/owner of Hong Kong Company will be: a) UK domicile, Non UK resident. b) Non UK domicile, Non UK resident....keep reading

Tax Question: I have established an offshore company which will be used for trading. Until it becomes significantly profitable [say in 6 months], it will be managed and governed in the UK, although it will have no UK assets and no UK staff. After it becomes significantly profitable, the management and governance will move offshore. Until it moves offshore, I expect that it will be treated as a UK company and be subject to UK corporate tax. My concern is the taxation liability that may arise on the transfer offshore. The company won't have any significant assets other than its trading history. The trades are all very short term and there will be no goodwill. Will there be any capital gains tax and if so on what will it be calculated?...keep reading

Tax Question: I own all the issued share capital in a private limited company incorporated in England and Wales. At present there are only four issued shares all owned by me. I would like to know the tax consequences of redefining the class of issued shares so that they only have voting rights. I would then like to issue a new class of shares which have the right to a dividend. The new class of shares would be owned by equally by me and my two brothers. The same company has received a substantial loan from an individual who was born in the UK but is not currently resident [works and lives in France]. What are the tax consequences of that individual gifting the loan to a newly incorporated company and after making such a gift are there any restrictions on returning to the UK to reside?...keep reading

Tax Question: 1 The director who is also a participator has a director's loan account overdrawn in a limited company at the year end. The director pays to the company interest equal to or above market rate. Will the company be liable to section 455 liability at 25% uder the circumstances. The director continually borrows and repays the loan to the company. Would this amount to bed and breakfasting under the recent changes. This sometimes results in the director repaying the loan within 9 months of the company's year end. kind regards diamond...keep reading

Tax Question: Hi, Holding Co owns all the shares of Co A which has developed land into properties over an 18 month period. A 3rd party wants to now buy Co A with a view to selling some of the properties and or renting them out. The question arises - can Holding Co claim the SSE exemption given that it will no longer be part of a trading group AND do the intentions of the 3rd party buyer matter in that Co A will apparently no longer have trading status by virtue of property sales and rent? Thanks...keep reading

Tax Question: Hey, I am not sure how easy this question will be but I am hoping you could help me out as I am uncertain of the best way forward despite professional advice. The issue is this: a. My wife and I own 5 properties (as joint tenants). Each property approx. 100k with 75K outstanding Buy to let mortgage. b. We also have a Ltd consultancy company running for more than 5 years (50% sares holders and directors) Purpose: a. Put the properties in a limited company to reduce the taxes in view of the recent budget changes (we do not need the rental income at present and hence can be re invested) plus use the available funds from our consultancy company to grow our property business. b. We have funds in the consultancy company which are not needed for running of the company c. I would like to move these properties in a separate company. The intention being that if things go downhill, we were to get sued or something else bad were to happen to the main...keep reading

Tax Question: I currently run a UK Company and I am looking at setting up an offshore holding company. So far from what I have read we need to go about using a share for share exchange to place the new offshore company as the holding company of the UK company? Can you advise on how you go about this or where in your books you cover this?...keep reading

Tax Question: Partnership is looking to transfer its business into Ltd co under Sec162 and obtain incorporation relief. The partnership has two properties - one long leasehold and the other freehold. Will there be any SDLT on the transfer of the above properties.? Could exemption be claimed for SDLT under sec 53?...keep reading

Tax Question: very simple question which confuses me if i evaluate my company tax bill at 10k payable can i give the 10k to charity and gain full tax relief so my tax bill is zero it is fully claimed expense against profits...keep reading

I am individual UK resident but not domiciled. I have some funds in Jersey offshroe bank acc taxed under remittance basis few years ago and I also have funds in my personal UK bank account which were taxed in UK. a)If I set up company in Isle Of Man (IOM) and I will be director of the company and I will send 50K funds from my UK based personal bank acc to IOM corporate bank acc to make investment in company name will : - sending funds from IOM corporate bank acc to UK to make investment seen as remittance of my Offshore funds taxed under remittance basis ? - If latter I decide to withdraw inital funds 50K I sent to IOM company from my personal UK bank acc seen as remittance of my Offshore funds taxed under remittance basis ? - Or the only thing I need to watch out not to trigger remittance basis tax is not to mix my offshore remittance basis taxed funds with IOM corporate funds ? b) In IOM corporate tax is 0% .If I decide to make investments using IOM based company to invest...keep reading

Tax Question: Corporation Tax: If a company A is demerged into new companies B & C via HMRC clearance. Company A will go into MVL can company A claim against CT the following expenses?: 1]Liquidation costs 2]Taxation work for HMRC clearance 3]Legal fees to draw up up the demerger agreement...keep reading

Tax Question: I am looking at setting up an offshore company (say in panama) to buy and sell publicly listed shares (for their capital growth rather than dividend income). The initial funds would come from a loan from my UK investment company. The intention is to allow the offshore company to roll over its capital growth without paying too much corporation tax. As the company is an investment company, would it need an overseas board of directors? Would it also fall under the CFC legislation?...keep reading

Tax Question: Hi, If I hold a property in the name of a Ltd company that I'm using as a nominee, does the value of the property appear in my personal asset sheet or does it have to go into the company balance sheet? thanks....keep reading

What qualifies for r&d tax relief?...keep reading

Tax Question: I am the sole director/employee of my UK based Ltd company. Operating this way as i have a rental property in the UK to protect. I am living in Germany for a while, but not sure for how long (a year minimum). I don't really want to wind down my company and start a Gmbh in Germany. I wish to keep my UK business bank accounts etc. My main client is based in the UK. Can I appoint a family member as another Director of my company so that it can still operate in UK, with me based overseas? If so, how is best to organise dividend payments etc. They would be a 'silent director' for want of a better term... Any advice around this would be appreciated Many thanks...keep reading

Tax Question: I wanted to understand if a director of a Ltd company with a SIC of IT consultancy can take out directors loan within a tax year, repay it back In full by year end and in the following year so the same. What is the HMRC consideration of this approach if the loan is charged at the standard interest rate....keep reading

Tax Question: Assume a company has a business of property letting, property development and some land sales, has some undeveloped land held in fixed assets for many years which it now intends to sell to a developer and there is an unascertainable overage payment of consideration. If the land is a capital asset and not held as trading stock: 1. A capital gain will arise based on the fixed sum received for the land and the value of the right to receive the overage payment? 2. If the fixed sum element of the sale proceeds is receivable in two instalments with the first on sale and the second upon the sale of the last house by the developer is the second instalment all taxable upfront irrespective of the delay before receipt? 3. The actual overage payments when received will then be taxable as a chose in action at that time with a base cost equal to the value of the right taxed upfront? If land appropriated from fixed asset to trading stock: 1. Can the company ...keep reading

Tax Question: If an offshore company trades and income is then matched by reinvestment straight back into UK companies is there a risk of UK tax liability where the beneficial owners are UK resident....keep reading

Description As a resident of the Isle of Man I'd like to take out a directors loan from my Isle of Man company. Could i please ask a few questions: 1. Can i loan my US corporation a loan from my isle of man company? It'll pay 3% interest and the full loan amount received back to IOM company in 2-5 years. 2. Can i take a directors loan for personal expenses in the Isle of Man on a low 0.5% interest? 3. Can i take a directors loan from my Isle of Man company to put into a US personal Whole life policy? I'd be able to pay this loan back from the investment profits that this will generate. 4. How frequently can i take a directors loan out? is monthly for various things acceptable? Many thanks...keep reading

Tax Question: a jersey company. shares owned by a swiss subject. company owns property in the uk. the property is rented out to a uk resident . the swiss person wants to transfer the shares of the jersey company for love and affection to her brother who lives in the uk. original acquisition cost 1m pound some 20 yrs ago today value 10mill pounds. disregard IHT .. property run as a serviced centre at present by way of a ltd partnership. rent is paid to offshore company . how will the position of the uk subject be effected by the transfer of shares...keep reading

Tax Question: I will be purchasing my former UK companies. I am now non resident for UK tax purposes and hold no shares in these companies. The first company provides on-line membership services via the internet mainly to UK customers. The shares of the UK company will be purchased and the trade then carried on by either my Maltese or BVI company. The former share holders will also receive on top of the sale price of their shares 5% of the new trading company, a total of 10% of the shares. The Maltese or BVI company will continue the trade via the internet with income being received outside of the UK. We will require however a UK client call centre for technical problems/advice for members. This will be independent of us and run on a commercial basis by one of the former shareholders, who will invoice accordingly. What are the possible implications of the permanent establishment rules and the possibility therefore of paying UK tax, and how is it best to overcome these? The other co...keep reading

Tax Question: I am about to start trading in Dubai. Buyer and sellers are both located there, I am acting as a middle man to facilitate that trade which will be in anything from educational products, equipment, computers, minerals etc. My question is that as the control of the company is from the UK, although I will need a Dubai based office and will be there every month to work in the business, will I benefit from having an Offshore Company or will I still be under UK tax rules for Income Corporation Tax?...keep reading

hi at work we employ a number of staff and are looking to give them an allowance for clothing. do we: 1. can we simply give them a lump sum eg by cheque to buy the clothing? 2. do we need to have to have an invoice from them for the amount spent on clothing? 3. do we need to deduct income tax/ ni in the same way as their salary? also, are we allowed to entertain our staff (eg take them out for xmas dinner) and put the amount thru as an expense? thanks...keep reading

Tax Question: Is a Maltese Trust considered a company under UK Tax Law?...keep reading

Tax Question: Are childcare vouchers claimable against corporation tax? if so under what section of corporation tax?...keep reading

Tax Question: Incorporation or LLP Ltd Company Mixed Use partnership We have a property portfolio of 21 properties. 6 are held with a Ltd company and the remaining 15 held by wife and myself within a simple partnershipthat s registered with HMRC. We have been advised to incorporate the 15 properties into the Ltd company to mitigate S24 issues. In contrast we have also been advised by another advisor to create a mixed use partnership LLP with myself and wife as physical members and our existing Ltd Co as a corporate member. My questions are: 1) If we just converted our existing simple partnership into an LLP would we mitigate the mortgage cost tax implications of Section 24 in the same way we would if we incorporated the whole portfolio? 2) The proposed Hybrid/Mixed use partnership uses deeds of trust to effectively transfer profit between partners and the Ltd company in an efficient way. {the same as Form 17 does currently between a married couple} Have you come acros...keep reading

Tax Question: Hi there I am involved in a Spanish start up high tech company that is developing drones for industrial applications. We have set up a uk operations division which is designed to operate a service using the products created by the Spanish company. We also want to be able to draw on grants available in the UK and in spain. We are potentially looking into a holding company to own these 2 companies. The plan would be to channel potential profits into the holding companies to reduce tax. Ultimately we want to sell the whole enterprise in a few years (say 3 or 4) so would like to place the companies on a good footing for future sale in terms of low CGT for the 10 current share holders and an attractive tax regime for the future buyer. We would like advice on all this please....keep reading

Tax Question: I am the main shareholder in a UK company that has a 50% stake in a German GmbH. The GmbH wishes to declare a dividend. It does not have the cash to pay it, so proposes to credit the shareholders loan accounts. The intention is to pay interest of 3% on the loan accounts. No decision has been made as to repayment of the loan. Future cash surpluses of the company would either be applied to paying a cash dividend, or paying down the loan account. My attention has been drawn to the following: 'Per HMRC's Company Taxation Manual CTM 15205, 'A dividend is not paid, and there is no distribution, unless and until the shareholder receives money or the distribution is otherwise unreservedly placed at the shareholder's disposal, for instance by being credited to a loan account on which the shareholder has power to draw.' How should that be interpreted in this instance? If HMRC were to question the dividend ( I don't know why they would) , would it be enough then to clarify it is...keep reading

Tax Question: Is the ATED charge a valid deductible expense in a company's corporation tax calculation?...keep reading

Question: With interest rates on cash savings negligible I have been investing my company's cash in shares and gold bullion. Am I correct in my assumption that any gains made on the sale of these investments are taxable at the small company's rate of 19% as for any other income earned by the company? Many thanks...keep reading

Tax Question: Is there any degrouping or exit charge payable if the transferee company dissolved? An offshore company wants to transfer it's UK property to UK company (new parent company) and then to be dissolved....keep reading

Tax Question: Hi, Mr X indirectly holds 30% (via a company) of a UK company (company A). Company A received a loan from a family member of Mr X . The family members of Mr X wants to convert the loan to a gift to the company . Is there any tax implication for : -mr X - company A - family member Thanks...keep reading

Tax Question: I currently have my own limited company, of which I'm a sole director, which has an 8% sare in another limited company (let's call it the Master Company for clarity). My own company receives a monthly dividend from Master Company which is classed as Franked Investment Income and so no further corporation tax is payable. The majority shareholders of the Master Company are planning to make the company dormant and start a new company in Ras Al Khaimah (RAK). I will be offered an 8% sare as before. As RAK is a 'no tax' territory I need some advice as to how this will affect my position. I will remain a resident of the UK. The majority shareholders and decision makers are relocating to Australia. The Master Company provides online video production services, there will be no UK employees and the servers are hosted on Amazon Web Services. We currently have 2 small offices where self-employed admin/sales staff will work from. Is this enough to avoid having a UK permanent estab...keep reading

Tax Question: Hi, I am considering setting up an offshore company in order to lower or potentially avoid coprporation tax. I am the sole director of a UK Ltd company (2 shareholders), non-UK (i.e. French) resident and my work (It consultancy) is carried out in Switzerland. 1. Woudl it be best to set up an offshore subsidiary, then invoice for work done in Switzerland from the offshore company ? 2. Or would a holding company make more sense ? 3. How would profits made by the offshore company/subsidiary be extracted ? Is there a reputable firm / tax adviser you would recommend to set this up assuming it makes sense in the first place ? Thanks, Sylvain...keep reading

Question: If I were to use a company to buy assets on my behalf. That is provide the finance, but use the company name for just holding the asset and then at some point transfer or sell the asset, how would this arrangement be looked at for tax?...keep reading

Tax Question: I am UK resident starting a company to provide services on a Europe-wide basis. For various reasons, this business will be based in Gibraltar. I am looking at holding the shares in this parent company as efficiently as possible with the option to become non-res in the future. Does holding the shares in the Gibraltar company via a BVI company make sense? Shares in the Gibraltar company would be acquired at incorporation at par. If, in the future, the a capital gain is made but no longer want to become non-res, is there anyway of benefitting from entrepreneurs relief despite the gain being made in a wholly owned offshore company? Answer:...keep reading

Tax Question: I and my wife own a UK ltd company We are the only two shareholders. It trades and makes a profit. We draw the majority of our money out as dividends. We both reside in the UK I hear more about offshore/holding companies. I wonder if its beneficial to us. So, if we had a Holding Company off shore in the Isle of man for example, we diverted cash through it and drew dividends would we pay the same rate of tax as we do now? Or, I'm thinking of retiring abroad, then if I drew out the dividends in the holding company would it be tax free? How long must I be out of the UK for in a tax year. My sons work for me in this (as managers) business Could I draw out my money as a dividend and pay them personally as a gift each month? Thus, reducing the amount, I pay them to say £10,000 per year? If so what's the best route for I and my wife to go?...keep reading

Tax Question: Please can you tell me the Pros and cons of being in the UK but having an offshore company?...keep reading

Tax Question: Hi, My scenario is as follows: " HOLDING CO Ltd owns 100% of SUBSIDIARY LTD. " Subsidiary Ltd has been trading for 17 years in general engineering and has always been profitable. " Holding Co acquired Subsidiary Ltd on the 1st Aug 2017 for ?1.1m. The goodwill element amounted to ?800k and has been recorded on the balance sheet of the Consolidated Group Co. " The Goodwill is being amortised over a 5 year period into the P&L of the Holding Co. Holding Co (which actually does provide management services so is a trading entity) will have losses generated from amortised goodwill and some acquisition related expenses (legal fees, funding fees, accounting fees) in the company year to 31 Mar 18. Question 1. Given the losses have predominantly been generated from a goodwill amortisation and acquisition related expenses, do these losses qualify for surrender under group relief to the Subsidiary Co for the year to 31 Mar 18 and thus corporation tax offset i...keep reading

Tax Question: Hi, My scenario is as follows: " HOLDING CO Ltd owns 100% of SUBSIDIARY LTD. " Subsidiary Ltd has been trading for 17 years in general engineering and has always been profitable. " Holding Co acquired Subsidiary Ltd on the 1st Aug 2017 for ?1.1m. The goodwill element amounted to ?800k and has been recorded on the balance sheet of the Consolidated Group Co. " The Goodwill is being amortised over a 5 year period into the P&L of the Holding Co. Holding Co (which actually does provide management services so is a trading entity) will have losses generated from amortised goodwill and some acquisition related expenses (legal fees, funding fees, accounting fees) in the company year to 31 Mar 18. Question 1. Given the losses have predominantly been generated from a goodwill amortisation and acquisition related expenses, do these losses qualify for surrender under group relief to the Subsidiary Co for the year to 31 Mar 18 and th...keep reading

Tax Question: Dear Sirs a foreign dividend (coming from a Swiss company) received by a UK company is it taxable in the UK? I would say no and if any tax is withheld at source should be lost but I would like to have your confirmation What if the situation if the foreign dividend (still coming from the same country) was received by a UK individual instead? Many thanks...keep reading

Question: I have owned a UK property development company for the last 10 years or so. Last years profits were in the region of £400,000 but this year we're expecting profits of over £2,000,000 as we have been developing an existing warehouse into residential units. I want to know if I can transfer the company out of this country into a tax Haven country. The plan would be to move out of the UK property market and use the cash retained in the company to develop overseas, free of UK tax. My ultimate question is therefore: Is this possible and if so how much will it cost?...keep reading

Tax Question: I'd like to set-up a UK holdco with my common-law parter, held 55/45 myself/her respectively (same class shares.) Ignoring implications of what happens if we split (which I'm well aware of), my partner would have an active role in the holdco and subsidiaries and a 45% holding is a fair representative of her value. Questions: 1) Are HMRC likely to challenge the holding due to our personal relationship (and us sharing a child together)? This would be a new holdco, as well as new subsidiaries with a new commercial purpose that is not a continuation of a current profession. 2) I intend for the holdco to charge management fees to the subsidiaries (all UK based) for bookkeeping, website maintenance, and general management. I presume this is acceptable and the holdco would simply pay CT on its profits? 3) If the subsidiaries are all registered for VAT and the holdco forms a group structure, does the holdco also need to register for VAT? Or would it be exempted on the basis...keep reading

Tax Question: Can an Isle of Man company choose its own accounting year end date and if so what is the procedure for informing the IOM tax authorities...keep reading

Tax Question: Is Guernsey a "qualifying territory" for the purposes of the dividend exemption for corporation tax for dividends received by a "small" Uk company from a Guernsey registered entity? Can't find an uptodate list of such territories on the HMRC website....keep reading

Tax Question: I am expecting an offer to sell my software business by way of an asset sale. I would prefer a share sale but unfortunately that's not an option in this case. I'm trying to determine if there is a way to mitigate the double tax liability, i.e. 19% corporation tax on the "profit", and then (at best) 10% Entrepreneurs' Relief on the gain on disposal of the company. It's been suggested that I might own the IP, not the company, as I developed the software myself as a director (my wife and I are 50/50) around 5 years ago while I was still freelancing (through the same company, but for unrelated clients) and there's no contract that states I was paid to develop this software for the company. I have no employment contract at all, though I have always taken an income in salary and dividends. When I was building the software this income was solely from my freelance work. The business I'm selling didn't generate any revenue for the first 6 months and I didn't go full-t...keep reading

Tax Question: I created a company in whose name I could hold a property. I raised money through a loan in my name and effectively lent the money to the company to buy it in its name. Should I have detailed resolutions showing these decisions and authority to transfer? Also a loan agreement between myself and the co.? If I wished now to transfer the property into my name at what price should this be (0 or market value) and what are the tax implications of a possible transfer of this type....keep reading

Tax Question: I am currently a UK resident set on becoming non resident by December. Currently, I'm in the process of setting up a company that will be registered as a offshore entity once I have completed my move abroad. The company's profits will all be non-UK sourced. My wish is to get the company close to operational prior to moving, without actually commencing to trade. To do so activities including but not limited to hiring staff, establishing a social media presence, launching a "coming soon" website with details of the company's proposed services will need to be undertaken. From a corporation tax perspective do any of these activities expose the company to UK corporation tax by being deemed as an existing trade when the company is formed offshore, or will they fall into the category of new products? Escaping UK corporation tax liability?...keep reading

Tax Question: As a UK citizen currently based in the UK, starting an online store selling products to the australian marketplace, the products will be shipped directly from suppliers hopefully within Austrailia but potentially elsewhere. Which country would be best to set up business entity UK or Austrailia, for tax purposes? For example which country would i be liable for tax?...keep reading

Tax Question: A tenant of a commercial property does not occupy the property but sublets it. When the sublease comes to an end the tenant then occupies the property for its own business use for 9 months before moving to another property and trying to sublet it again. If the subtenant paid a sum in respect of dilapidations how is that taxed on the tenant ? Is the tenant treated as an intermediate landlord with a sublease and if on receipt of the dilapidations payment from the subtenant is that taxable as a capital receipt as the tenant was occupying the property for it own use after receipt of the dilapidations payment? ( see PIM2020) ) If so what is the position if the tenant then incurs repair expenditure required before another subtenant takes up a full repairing and insured lease? Is the expenditure regarded as unrelated to the dilapidation from the previous subtenant and deductible revenue expenditure assuming it is of a revenue and not capital nature ?...keep reading

Tax Question: Hi, A UK company has an employee Mr A (non uk National) who is now leaving the UK and going abroad . After leaving the UK , Mr A will invoice the UK company for services via his own company. - Is there any tax implication or NI implication here? Thanks...keep reading

Tax Question: Hi, We are romanian citizens, residing in the UK for the last 13 years. We have now a company based in UK, doing short holiday rentals - luxury properties in Paris for mainly US clients. The trading is online only. Which kind of tax havens would you recommend for this situation? Is it better to have romanian or UK citizenship? Is it possible to have a meeting with an offshore tax advicer to discuss the options in detail? Thanks, Daniela...keep reading

Tax Question: I just moved to the UK. I am a director and owner of a UK company with 3 employees but I don't take any income from the UK company, I work abroad and as a non-Dom, I avoid repatriating any income earned. May my UK company pay towards a pension plan for me, and is that tax deductible for my UK company and is this taxable for me? What is the maximum pension my company may pay in to such as scheme?...keep reading

Tax Question: deduction for corporation tax the company acquired the intellectual property /rights to exploit a literary estate. the remaining term is 60 years the accounting treatment is to amortise equally over the 60 years it is normal for the tax treatment to follow the accounting treatment and so a 1/60 deduction is proposed ( for ct purposes ). about two years ago a change excluded goodwill as a deduction for ct purposes. am i correct is saying this did not extent to intellectual property and my proposed treatment is correct ? many thanks...keep reading

Tax Question: Dear Sir \ Madam, My wife and I jointly own a UK limited company (50%/5%).We are currently preparing to move to Perth, Australia and have (or will have) approx ~100k in residual earnings in the company. What would be the most tax efficient way of extracting the money from the company? I believe that closing the company (which we would have no further plans to trade from) might open up opportunities of tapered tax relief - but I was led to believe that HMRC need to agree to this? If this is the case what would I need to do to get HMRC to agree to enable us to get tapered tax relief? And how much could my wife an I expect to release from the company? Also, would there be any other efficient options open to us? Would it be better to try and transfer the UK limited company to Australia? Kind regards...keep reading

Hi, i am looking at offshore tax strategies mainly for uk resident indviduals and companies and while reading around i am finding difficulty in answering the question that what ever tax strategy is used, in whatever jurdistriction, at some point extraction will be required, can you point me in the right direction, possibly a guide, that covers this for a uk resident. Many thanks...keep reading

Tax Question: I am UK domiciled but non-resident. I have an off-shore ltd company based in Belize and it charges a UK [non-associated] ltd company for work I perform exclusively overseas. There is no permanent establishment for the Belize company in the UK. I earn a salary from the Belize company. Is the off-shore company required to notify HMRC or fill in any tax form for the income received from the UK company ?...keep reading

Tax Question: I am planning to set up a new online business of which I will be one of the directors. I am UK resident for tax but work from all over the world. Can I set up a company in say Singapore or Belize and have a UK holding company for any UK payments and transfer the profits from that company to the Singaporean company to minimise my tax liability in the UK? Thank you...keep reading

Tax Question: What might the tax position be on owning properties privately, but managing them through a company structure that the private owners are directors of? The private (-highly experienced successful landlords) owners - a husband and wife team- who wish to semi-retire - would like to have greater protection from new laws that easily criminalise landlords for not filling in the right forms, etc, etc. on top of selective licensing laws which prevent owners even leaving the country for too long. The limited company would employ or contract staff to do the running and form filling, right to rent filings, etc. The owners would lease the properties on a short term basis (1-3 years) to the company for a flat fee, of say 25% of rent. The company would collect rent, pay the annual leasing fee, and do all repairs and summersaulting that modern landlord laws ever increasingly require, through extra staffing. First I presume the company having the same director as the privately owned...keep reading

Question: If there are losses carried forward arising out of a property rental scenario and the ownership for the property is moved to a ltd company, can the company utilise those losses and set against current year corporation tax profits? That said, any CGT issues would presumably be better served in personal tax environment when compared to that of a ltd company? Thanks...keep reading

Tax Question: If i trade in quoted shares in a limited company (which has no other activity)and make a profit of £20k pa and pay myself a salary of £5k pa am i able to make a company pension contribution of £15k pa and therefore not pay any corporation tax?...keep reading

Tax Question: What might the tax position be on owning properties privately, but managing them through a company structure that the private owners are directors of? The private (-highly experienced successful landlords) owners - a husband and wife team- who wish to semi-retire - would like to have greater protection from new laws that easily criminalise landlords for not filling in the right forms, etc, etc. on top of selective licensing laws which prevent owners even leaving the country for too long. The limited company would employ or contract staff to do the running and form filling, right to rent filings, etc. The owners would lease the properties on a short term basis (1-3 years) to the company for a flat fee, of say 25% of rent. The company would collect rent, pay the annual leasing fee, and do all repairs and summersaulting that modern landlord laws ever increasingly require, through extra staffing....keep reading

Tax Question: I own a company that has recently sold a property in Germany at a good profit. There is German tax to pay of about €30,000. The company has brought forward capital losses, and deficits on management expenses and non-trading loan relationships. Must all those losses brought forward be relieved against the gain on the property, before the gain is subject to UK corporation tax? Or just the capital losses? The concern is that the amount of losses brought forward will produce a negligible profit, and thus the German tax paid will be relieved as an expense, rather than being subject to the full double tax relief....keep reading

If a man is a non uk resident and non uk domicile, are his UK assets subject to IHT. If so - What are the IHT allowances - How much can he pass to his spouse without incurring IHT. Is it the total estate just like a UK resident, or is there a limit...keep reading

Tax Question: Hello. I have a question regarding inheritance tax. As a potential beneficiary to an estate who is not a resident of the UK, will I be subject to UK inheritance tax or the equivalent tax of the country where I reside?...keep reading

Question: Are there any UK tax implications for me (non-UK domicile non-UK resident) to send 11.000 pounds to daughter (non-dom but currently UK resident- since two years ago ) who is studying at university level in the UK at present ? Can I send the fund from my Jersey sterling account to her Isle of Man sterling account on which she can then write out a cheque ? Thank you...keep reading

Tax Question: What is the best way of becoming NON domiciled of UK? I have been fiscally resident outside of the UK since 1995. Now fiscally resident in Portugal....keep reading

Question: I understand that my domicile of origin is the nationality of my father (my parents were married when I appeared!). My father was born in Ireland pre-1949 (i.e. pre Republic and before the establishment of Northern Ireland). I was however born on UK territory where my father was living at the time. Is my domicile of origin Ireland or the UK?...keep reading

Tax Question: Sirs, Does a person who reside in England has to pay inheritance taxes on shares of foreign companies inherited from his father who is a foreigner not residing in UK knowing that there is no a tax treaty between the UK and the father's country. Many thanks...keep reading

Tax Question: Is it possible to become non domiciled of the UK and maintain a home in the UK?...keep reading

Tax Question: I am a Non Dom and pay tax on an arising basis. This tax year I made capital gains off shore and losses in the UK. May I offset one against the other? Thanks Louis...keep reading

Tax Question: I understand it is relatively difficult to acquire a domicile of choice and thereby lose one's domicile of origin. Is it considered to be any easier to acquire a subsequent domicile of choice? For example, a UK domicile moves abroad and takes the steps necessary to establish a domicile of choice in the new country. Later, he/she moves to a third country, at which point his/her UK domicile is restored. Is the procedure for once again shedding the UK domicile and acquiring a domicile of choice in the third country any simpler/quicker than acquiring the original domicile of choice?...keep reading

Tax Question: I am not resident nor domiciled in the UK. I hold shares of UK companies in Jersey. Are these assets liable for UK Inheritance tax? Would putting these assets into an overseas company protect these assets from UK Inheritance Tax? Would the use of a Jersey trust assist in this case? Would the answers to these questions be different if I were not resident but was domiciled in the UK?...keep reading

Tax Question: Could you please help.. My mother who lives in England has proberty in England and in Italy, she has already made a will leaving her English property to my sisters and her Italian proterty to me as i live in Italy, we are having problems making a will for Italy, but thats not what i needed to know. I am worried about the inheritanza taxes..do l have to pay English taxes aswell as Italian taxes..and the same for my sisters do they pay taxes on the Italian inheritanze .? Thank you for any advice...keep reading

Tax Question: Hello, Is owning equity of a US-based company with a branch/permanent establishment in the UK considered to be foreign investment for UK tax purposes? Thanks!...keep reading

Tax Question: Dear Sir./Madam. Can capital gains from the sale of digital currencies be claimed under the remittance tax basis, provided that a non-UK exchange was used for the sale and that the proceeds are kept in a non-UK bank account? The main question is about what qualifies as 'location of assets' in the case of digital currencies. Thank you....keep reading

Tax Question: When looking at where assets are held for a EPT periodic charge calculation I am aware that for shares it is the registration of the shares that is important. If the UK shares are managed by an investment manager who is using an offshore nominee (rather than a trading company) account does this change where the assets are held....keep reading

Tax Question: My wife is about to inherit some cash money and a share in property from her father in Jersey in the Channel Islands. This will be in the region of £500,000. Taxes will be paid on both aspects within Jersey but will she be liable for any inheritance tax in the UK...keep reading

Do you think that a gift of cash from an overseas (Jersey) bank account by a non UK domiciliary to UK beneficiaries would be exempt for UK inheritance tax purposes? If not would it be a PET? Note that this will be an electronic transfer of the cash (not a cheque). Does it make any difference?...keep reading

Tax Question: I understand that Canada does not have any form of IHT. However, should a resident of Canada dies certain assets are deemed to have been sold prior to death. If the deceased is a UK domicilary who would also have to consider such assets in the UK, do HMRC allow any deduction against the possible UK IHT liability to take into account any Canadian tax paid? Many thanks...keep reading

UK Inheritance Tax My wife and I are both British Citizens. We claim South African domicile and have been retired and resident in Australia for the past 13 years on 410 Retirement Visas. During this time I have not visited the UK. My wife has paid two brief visits. Our income is UK generated from Superannuation and Old Age Pensions. We also own a property which was our Principal Residence until leaving the UK and which has been tenanted since our departure from the UK. Income Tax on our UK income has been paid to HRMC and non-residence has always been claimed on our UK tax returns for the past 13 years. In the event of our deaths we intend to bequeath both our English and our Australian assets to our son who lives and works in Switzerland, is a British and an Australian citizen, and was also born in South Africa. Our British assets, all in joint names, will easily be shielded from IHT by the UK Inheritance Tax allowances. Would you please advise whether our Australian assets w...keep reading

Tax Question: I am a non dom resident in the UK and I am a beneficiary in a non discretionary trust. The trust has shares in a UK trading company.If dividends are paid out will I be taxed on it though the trust has not paid out to me. If I have to pay tax then can I pay £30,000 on remittance basis? The UK company pays corporation tax, will I be taxed as beneficiary even if the dividend is not distributed? Thanks Mukesh...keep reading

Question: Following the changes relating to wives domicile of dependancy, after 31 December 1973, may a woman who is resident and ordinarily resident in the UK and UK domiciled, elect upon marriage to a UK non domiciled individual, to chose her new husband's non domicile status without physically moving abroad?...keep reading

Tax Question: UK Dom /non resident transfer of overseas money and property to Non Dom spouse / Non resident. If transfers exceed the NBR, the Non-Dom spouse could consider to undertake a IHT Death election, in consider prior own assets as applicable. . 1. considering the Money transfer the UK Dom spouse received no benefit, bank account control etc. Would therefore likely not fall under IHT consideration or is it still deemed a PET subject to tapering? 2. In relation to the property transfer could this be considered a GWR; if the transferee resided in the property at any point after the transfer. 3. Would spousal election negate the GWR and not subjected to IHT. 3. If the property was rented the proceeds where utilized in any part to support to household outgoings or for child education costs would establish a GWR situation. thanks...keep reading

Tax Question: Although I was born and brought up in the in the UK, I regard my domicile of origin to be Ireland, because my father had an Irish domicile. However, because I lived in the UK for many years, I first acquired a UK domicile of dependency and thereafter a UK domicile of choice. If I were to move to Spain (for example) I could presumably take the necessary steps to establish a new domicile of choice there. If, after establishing this domicile of choice I moved to another country (say, France) my understanding is that my Spanish domicile of choice would cease. Because everyone must have a domicile, would my domicile revert to my domicile of origin (Ireland) or my previous domicile of choice (UK)?...keep reading

Tax Question: Although not a time we look forward to we are trying to work out an inhertance tax issue. My wife will one day inherit a sizable sum when her mother dies in the US. All of the estate will come from the US and will also be shared with my wife's siblings there. My wife is a dual US/UK citizen living in the UK. What are the UK tax implications of this given that I believe in the US, the entire estate will be subject to inheritance tax there, before any is sent to my wife. Does the UK accept that inheritance tax has already been paid or will the HMRC require tax be paid in the UK as well on the already US taxed sum? What if the amount inherited was not brought into the UK? My wife's mother has also loaned money to all three siblings. Will those loans be considered as part of the estate and taxed (either in the US or UK) or are loans handled differently for tax purposes?...keep reading

Question: Can you please help. I am non - dom. living in the Channel Islands for 25+ years, before that living outside the UK for a further 14 years. UK born though (Father UK born). I have never worked or lived whilst working in the UK. I am thinking about buying a UK property (small estate with vineyard). I am married but wife lives separately from me in London. She is UK based, UK tax payer. I do not want to loose my non-dom status as this UK property will probably be sold on within 3~5 years. Any advise will be greatly appreciated....keep reading

Tax Question: A non-dom UK resident who has not claimed the remittance basis "receives" a distribution from a trust in South Africa. However, the distribution while declared is not actually paid but allocated to a loan account. When would this be taxable in the UK in the hands of the beneficiary?...keep reading

Tax Question: Using the remittance basis for UK Tax, if I sell my property in Australia remit the net proceeds to the UK (sale price - mortgage - associated sales costs) and then use those proceeds to  buy a property in the UK - will that transfer be subject to remittance tax? Second question - similar scenario but the sale of property in Australia yields a net loss, can I use that loss to offset remittance basis tax on any money remitted into the UK in the same tax year (where that money comes from offshore income)....keep reading

Tax Question: My question is regarding inheritance tax and who it is due on.My father passed away in a South Asian country and I am due to inherit money and property.My father has no connection to the UK i.e. he was not born here, was never resident in the UK and has no assets in the UK.I will have been in the UK for 12 years by October 2016.From my understanding as my father is a non-UK national and all of his estate will be disposed of in said South Asian country he would obviously not to liable to UK inheritance tax on this.However, as I would be classified as resident in the UK (living in the UK for more than 183 days of the year) would I be liable to pay inheritance tax on whatever I inherit from my father if it goes beyond the tax free threshold of £325,000 for inheritance tax? Or does the fact that I would be considered non-dom mean that I would not be liable to pay UK inheritance tax? I would be grateful for your help on this matter.Many thanks....keep reading

Tax Question: I was made to understand that if the property is already owned by a non UK domiciled non UK resident it should not be transferred directly to a trust [or the nominee of a trust] as this would give rise to an immediate inheritance tax liability. If UK property is transferred to an offshore trust [or to a BVI Co that is already owned by an offshore trust] then it is considered as a chargeable lifetime transfer and IHT at 20% i immediately payable upon the transfer to the offshore trust. Is this true?...keep reading

Tax Question: Remittance or no remittance Assume a UK resident non-dom purchases a commodity [say a collectible item] offshore with offshore money and has it sent to an offshore address. Now assume that it is accidentally sent to the non-dom's UK address. What options does the non-dom have for this not to count as a remittance?...keep reading

Question: A UK resident/Non-dom (Australian) is a Director of a property development Co expecting first profits over next 3yrs. Shareholder is a discretionary Trust, of which the Non-dom and his parents are trustees and potential (primary) beneficiaries. The Co, Trust and family members are all Australian tax resident. Trust net income expected to be about £60k worth per year and would all be distributed to Non-dom's parents. Trust also has £50k worth of sharemarket trading losses. Non-dom been in UK for 3yrs, higher rate taxpayer. Does Non-dom have any tax UK tax issues to consider in this case (even though Trust income goes to parents)? If so, does income get taxed 3 times; by Co, then parents, and also Non-dom? What could you suggest to avoid or minimise UK tax issues, if relevant? Could a Company be set up to receive and accumulate the Trust distributions, without any UK impact, and would Non-dom have to ensure not a Director or shareholder of that Co? For next few years, do...keep reading

Tax Question: Remitting capital gains on shares that were funded by untaxed foreign income. I wish to sell some shares from a share portfolio account and transfer the sale proceeds to the UK and apply the remittance basis tax on this. The share portfolio was opened in Australia before I became resident. Since becoming resident the share account has received dividends as well as the proceeds of sale of shares. I have actively bought/sold during this time. I have claimed the remittance basis during this time; therefore these capital gains events and foreign income received have not been subject to UK tax (they have not been brought onshore). I am wondering that if I now sell shares and remit the proceeds to the UK, where those shares have been funded by foreign income previously shielded by claiming the remittance basis if HMRC would view the share proceeds as having an untaxed foreign income component that would need to be taxed alongside the overall CGT? As an example, lets say I b...keep reading

Tax Question: Are monies remitted to the UK for the purposes of making lump sum payments to an individual as part of a separation consent order subject to the remittance tax? I need to make payments as part of a settlement agreement and am wondering if I use my offshore accounts to pay these (where all of my assets are based) that these will be subject to remittance tax. The money would come from foreign interest/earnings previously shielded by the remittance basis....keep reading

Tax Question: Hi, As a non-dom in the UK, I have properties to let in Brussels. All the benefits of these go to my parents. They just send me the money to pay the mortgage and the Belgian taxes, and they live from the remaining. How can I avoid paying additional taxes in the UK on this income (that I never see)? Or how can I reduce these UK taxes? Thank you for your answer....keep reading

Tax Question: Dear Sirs, a client wish to buy a property in the UK. An overseas bank is going to finance this purchase but the collateral consist of overseas bonds and shares. Should he remit this amount, it is possible that it can be qualified as a remittance because of the collateral and the other potential problem is the servicing of the debt Could you confirm this view for me?...keep reading

Tax Question: Good morning! I am a British passport holder and will be sponsoring my children and husband (within the next year) for the spouse/family visas - the children and I will live in the UK but my husband will remain working in the UAE. He has his own company. From my reading he will have 2 connections (family and access to accommodation) but will be considered an 'arrival' so would be able to be in the Uk for 120 days before his income is taxable. My questions relate to if he is in fact in the UK longer than 120 days or if over time he is in the Uk for more than 90 days. Would his income (salary) paid to him by his company be taxed - or all the income (net profit) of the company. Are there expenses we could legitimately put through the company or are fringe benefits taken into account? Our house in Australia is in joint names - so will I be taxed on the income from the house? If so - is it best to put it into a co/trust prior to our arrival in the UK? If we look to buy ...keep reading

Tax Question: A man with a UK domicile of origin but now non domiciled holds UK residential property through an offshore company.He gives the shares in the offshore company to his adult children whilst non domiciled. Am I correct in assuming that for IHT purposes this is a gift of non UK situs assets by a non UK domicile and hence excluded from IHT on his estate even if he is later becomes resident in the UK under the Statutory Residence Test and is deemed to be domiciled in the UK.when he dies.?...keep reading

Tax Question: How can I establish whether the UK tax authorities would accept my claimed non domiciled status for UK Inheritance Tax purposes?...keep reading

Tax Question:  I plan to remit into the UK and have the remittance basis applied to a portfolio of shares that I will sell down completely and transfer to the UK. I understand the capital gain portion of this will be subject to CGT under the remittance basis, and the return of capital will not be subject to remittance basis tax - the capital put into the share portfolio was done before I became migrated and become resident in the UK. My first question is; will HMRC consider the value of the portfolio on the day I arrived in the UK or the original cost of the portfolio when calculating capital gain? Note this is a closed account, no money has come in or come out since I migrated to the UK. Shares have been sold with proceeds used to buy more shares, dividends received have been used to buy more shares, therefore all accrued gains have been reinvested within this one account. My second question is that if the entire fund is sold down and closed, will there be a 'net' capital gain ca...keep reading

USERNAME: ra_69Tax Question: I am a qualified non dom resident in the UK, wishing to remit to the UK 400K from the sale of a property in Australia. 300K will be return of capital and 100K profit. I w...keep reading

Tax Question: Thanks for your response on remitting income from capital gains and having remittance tax applied to that. In order to complete the question let me add full detail. I bought two investment properties in Australia 2014 for 1M - I borrowed 700K and used 300K cash as deposit. The loan is interest only and stands today at 700K I moved to the UK in 2017 and became non-dom resident. At that point the properties were valued at 1.1M I am considering selling them now and using the return of capital to purchase in the UK. Assuming they are valued at 1.2M, once fees were paid and the loan paid out I would be left with around 450K. First question - when evaluating the capital gain would I base it on the value of the property when orignally purchased or would I value the property on the day I became resident in the UK? Assuming the former, lets say the capital gain came to 100K (100K for stamp duty, land tax, broker fees). If I then remitted that 450K to the Uk would I pay remit...keep reading

Question: Hi A friend of mine (UK resident and domicile) received a personal loan a few years ago (quite a large amount) from a very close relative abroad (non-UK resident and non-UK domicile). This relative is now on his death bed, and he said he doesn't want the loan to be paid back. As far as my friend is concerned, what does he have to do? Are there any UK tax implications? can a loan become a gift? I don't think there is any piece of paper to say that the original transfer was a loan, it was done on trust. So I guess no one can legally ask for the money back. Thanks for your help...keep reading

Tax Question: My father now 91 wishes to hand over his estate as soon as possible. I am UK domiciled and resident as is my brother. My parents are neither UK domiciled nor resident. Although they are UK domiciled by origin. They have been resident in the Jersey since the Dec 1971 and have remained outside the UK ever since. All their assets are out of UK (for over 35 years) apart from a small field of about 4 acres in green belt on outskirts of a suffolk town where they used to have a home. There is no dwelling on the land nor other amenity. It is agricultural land. I am seeking confirmation from the solicitor holding the deeds that the land is held jointly or severally by my parents. I understand that it is directly owned. (neither a trust nor company involved). Checking with chartered surveyor acting as agent for the land. I am informed that the Red Book value is about £60,000 to £80,000. The local plan will not allow planning until after 2027 (unless something changes). But wi...keep reading

Tax Question: Dear Sirs a UK resident individual who qualifies as a Res non dom, would like to use the business investment relief to remit some foreign income. Can he invest in his own company (as a loan) even if it is a consultancy company? Should then buy a property with the remitted funds and in the future have a rental income with the company, would it be possible for him to receive some dividends from the company? Many thanks...keep reading

Tax Question: Is commercial property in uk captured under IHT?...keep reading

Tax Question: An elderly lady owns a house in the UK. She lived in the UK for a few years decades ago but is now non-resident and non-domiciled in the UK (she lives in South Africa). She plans to leave the house to her daughter, who also lives in South Africa and has never had UK residence or domicile (although both mother and daughter are British citizens). What are the UK IHT implications? (There have been no other transfers of UK property and the estate will consist of little but the house)....keep reading

Tax Question: A person who has never been resident or domiciled in the UK is permanently relocating there. He expects to be regarded as a non-Dom in the UK (until deemed domiciled). He wishes to establish a non-resident trust to hold his non-UK assets. Does it make any difference, from a UK tax point of view, whether he sets the trust up before moving to the UK or once he is resident there?...keep reading

Tax Question: With regards to the cleansing of mixed funds by 5th April 2019: - Can only a capital amount be moved out of a mixed fund, and can there be a 'risk buffer', e.g. only 80% of what is understood to be capital is nominated (the rest remaining as part of a mixed fund, just in case an error was discovered at a later stage)? - Is there a need to separate the remaining mixed fund further into income/gain, or does just the nominated 'capital transfer' fulfil all requirements of the cleansing process? - Does the receiving account have to be a new account, or is an existing offshore account with a zero balance acceptable? - What does the nomination have to look like, is there a form, a specific format etc.? Does the nomination need to be signed and filed somewhere? - Does the capital in the (new) clean account have to be remitted before April 5th, 2019, or can it remain offshore until required in the UK?...keep reading

Tax Question: Would the following scenario work for mixed fund cleansing: a) Prior to entering the UK in 2012 I had a share portfolio ( the "Original pre-UK portfolio"), the base price (being the aggregate of the original purchase price of each share notwithstanding some of these purchase prices are from say 1998) is $40; b) The Original pre UK portfolio was sold in 2014 for $100 and 100% of the proceeds were used to buy a new portfolio (the "New Portfolio"); c) The New Portfolio is sold on 22 March 2019 for $120: $40 is segregated in one account (being the original capital amount) and $80 is segregated into a different account (being nominated account). Does this mean that the $40 can be remitted at anytime to the UK with no tax payable on it. But, the $80 would be subject to capital gains tax if remitted to the UK?...keep reading

Question: I am resident non dom in the Uk for the last 5 years, from this fiscal year I have passed an oversea agency business to a Swiss company where I have no shares and control and for which I will not be working for ( this agency business was previously run offshore). The Swiss company will pay me in exchange part of the profit of the business I have passed to them. I understand that due to my status it can remain offshore tax free. The question is: will I be eligible for Swiss tax now and how is the Swiss company paying me the annual lump sum? Just as a Uk private resident?...keep reading

Tax Question: I have funds in an Australian superannuation pension fund. My understanding is that when I become resident in the U.K., all distributions from this fund (Australia requires min of five percent pa) will be taxed as income in my hands (even though some share would be a return of my own investments). Based on this I plan to withdraw the funds before coming to UK. However, before I do so, I wanted to check - is it possible that if I kept the account, it would not be subject to IHT in the event I died n the U.K. before 75? Thank you...keep reading

Tax Question: My questions concern a deceased person who was non-UK resident and non-UK domiciled. He was the sole shareholder and director of an offshore company (BVI). The offshore company has a UK bank account with significant funds in different currencies. The deceased had no UK assets in his sole name. He only ever been to the UK on occasional visits. Could you please tell me if an inheritance tax account needs to be delivered to HMRC. I assume that the bank account will be excluded property for IHT. Is that correct? Is there any other tax I should be thinking of, say income tax in relation to any interest in terms of the bank account....keep reading

Tax Question: I understand that a person's domicile of origin is the father's domicile (if a child's parents were married when he was born) . A was born in Hong Kong and has lived in Hong Kong with his mother during his first 18 years of life. His father lived in China and did not manage to go to Hong Kong until A was 7 years. Would A's domicile of origin be Hong Kong (his birth place and his mother's domicile) or China (his father's domicile)? Or would it be simply China since Hong Kong is now part of China? Thank you....keep reading

Tax Question: If the husband is non Domicile, decides to remit some money to his wife in UK from overseas as a gift under the remittance basis. As my understanding, the husband is liable for the related tax. If the husband fails to pay the related tax at the end, will the wife be liable to pay the tax or will HMRC cease the money/gift that she received. Assuming the husband and wife are financial independent, which means no joint bank account and no jointly owned property....keep reading

Tax Question: Hi, I am non UK resident.Been living as a tax nomad for the last couple of years.I'm not earning any money as I live of my assets.(Offshore) I am trying to establish if it would be worthwhile to consider tax residency & residency in Panama ( as this seems straight forward with the least of requirements) as well as creating a IBC which can hold some properties and investments. The set up of this will cost around $10.000,- Thinking of holding property in the IBC ,which I will use providing that I am not spending longer than 183 days in each country.I'm not concerned about local taxes, just looking for a legal way to protect assets from CGT and IHT. What are your thoughts on my situation? Would much appreciate your opinion....keep reading

Tax Question: Hello I'm a not-dom UK resident on arising base since May 2014. I'm thinking to buy a flat in London. Can I use my clean capital as a deposit for a morgage? In my case my clean capital would be savings and capital gains deposited on my Italian bank account. 1. I know that clean capital must be appropriately segregated or ringfenced- so that it cannot be mixed with foreign income and gains arising after I became tax resident in the UK and be subject to the mixed fund rules. How can I do that if at the moment my clean capital is mixed with other funds/gains? 2. I have read: "clean capital can also include outright gifts and monies received by way of inheritance." Those gifts and monies are supposed to be received before the arrival in the UK? Many thanks...keep reading

Tax Question: if a non-dom pay the UK tax liability through his offshore mixed fund- would this to be treated as a remittance?...keep reading

Tax Question: UK Inheritance Tax My wife and I are both British Citizens. We claim South African domicile and have been retired and resident in Australia for the past 13 years on 410 Retirement Visas. During this time I have not visited the UK. My wife has paid two brief visits. Our income is UK generated from Superannuation and Old Age Pensions. We also own a property which was our Principal Residence until leaving the UK and which has been tenanted since our departure from the UK. Income Tax on our UK income has been paid to HRMC and non-residence has always been claimed on our UK tax returns for the past 13 years. In the event of our deaths we intend to bequeath both our English and our Australian assets to our son who lives and works in Switzerland, is a British and an Australian citizen, and was also born in South Africa. Our British assets, all in joint names, will easily be shielded from IHT by the UK Inheritance Tax allowances. Would you please advise whether our Australian...keep reading

Tax Question: My father is non domicile and resident in Italy. He owns a commercial shop in London which generates a rent of 64k per annum gross. I would like to find a way of him owning the property via shares in an off shore structure of some kind to minimise IHT....keep reading

Tax Question: My wife and I are non resident of UK. I own several UK based commercial investment properties ( worth above £650 K. ). If I will these to my wife ( no taxes between spouses ) and after my death she sells them all and remits the cash OUT of UK, will there be any further UK liability taxes ? Thank you....keep reading

Tax Question: Hello, Your advice is still a little unclear re my last two questions dated 06/11/2018 and 12/11/2018 ; my wife and myself are both non dom or resident of UK. If I will/leave all my property assets in UK solely to my wife and after my death she sells them all and banks all the proceeds in our offshore home town, will there ever be any future tax claims whatsoever against her by the UK authority BEFORE her death or AFTER her death ? Thank you....keep reading

Tax Question: Inheritance tax A foreign national, not born in the UK and never been a resident in the UK. If he was to become a resident in the UK would his property and shares abroad be liable to the UK inheritance tax on his death? If yes, does it happen immediately after he become a UK resident?...keep reading

Tax Question: 1- non UK domiciled born in Libya receive money from Libya is this taxable? 2- non domiciled sell property in Libya and bring part of money into UK is it taxable. 3- non domiciled receive financial help from his family in Libya is it taxable? Many thanks...keep reading

Tax Question: My question dated 06/11/2018 : You did not explain if there would be any UK IHT liability for my wife before or after her death ? I should have mentioned that the property sales would be above the £650K. UK IHT marital allowance after CGT was paid by my wife. Thank you....keep reading

Question: I have both gains and losses on investments in an offshore ETF without UK distribution status. These gains and losses were through onshore brokers and the settlements were to onshore accounts. Where precisely on the tax return should these be disclosed ? Does the answer change depending on whether I am filing on remittance or worldwide arising basis ?...keep reading

Dear Sir I have looked on the HMRC website but cannot find where i should transfer the 30k if I am going to do it from offshore and directly to HMRC. Could you help ? many thanks...keep reading

Tax Question: Hello, further to your 2014 article about 'diminution in the value of an estate' regarding IHT: I am non-dom and non resident of UK and hold a UK commercial property (no mortgage) in my name. If i transfer this to an offshore company which I own 100% in order to avoid IHT would there be any CLT charge for IHT or would it fall under the fact that there would be no diminution in the value of my estate? And what are the SDLT implications? If I transfer it at market value before April 2019 presumably this would rule out any CLT IHT charge? But would incur SDLT? Is there anyway to avoid both a CLT/IHT charge and SDLT on transferring this property to the offshore company? Thanks....keep reading

Tax Question: I have a question regarding remittance to the UK of capital gains realized offshore in an arising basis year on a mixed fund investment. Assume an overseas investment of ?80K consisting of untaxed funds is made in May 2018. This is sold in September 2018 and realizes a capital gain of ?20K which is taxed on arising basis. Can this taxed gain of ?20K be segregated from the sale proceeds of ?100K and remitted to the UK without further taxation or does the pro rata rule apply meaning that if ?20K is remitted only ?4K will be tax free (20%) and ?16K will be taxed on remittance as a mixed fund. Thank you....keep reading

Tax Question: A non-domiciliary who has previously used the remittance basis and is now required to use the arising basis wishes to re-base certain assets he sold in 2017-2018 at their 6 April 2017 value and not rebase others. My understanding from previous briefings is that re-basing is in fact the "default" and the non-dom has to "opt-out" for assets he does not wish to re-base (e.g. assets which were standing at a loss on 6 April 2017.) How should this "opt-out" (or the re-basing if my understanding is incorrect) be disclosed to HMRC on the individual's tax return so that the capital gains tax pages are compliant with HMRC rules? Thanks in advance...keep reading

Tax Question: Dear Sirs i have a client who remitted the consideration of the sale of a foreign property which was sold with a capital loss. If he did not separated the bank account and sent over the fund from a mixed fund could he send the money back and restart the process of cleansing the bank accounts and once done resend the money back to the UK? if not is there any other way to correct a mistake of this kind? Many thanks...keep reading

Tax Question: Hi. Here is my current situation. Aged mid-70s, non-dom. Not currently officially tax resident in the UK [been spending less than 180 days in the UK each year for the past 5 years]. However, with the new Statutory Residence Test, I will become UK resident. Currently, I don't have any assets in the UK apart from a house valued at GBP 600k. I would like to invest in commercial and residential property in the UK [to rent out]. My married adult children are non-dom UK residents. Here are my questions: 1] If I invest via an offshore company [say BVI-registered], would I be completely protected from IHT [not worried about deemed-domicile rule] given that I would be a UK resident? 2] If I invest via an offshore company, given that I will be the beneficial owner, would the company's net income be liable to income tax at the personal rate given that I would be a UK resident? Sections 714-751 ITA 2007 talks about the requirement for a "transfer of assets", but my asse...keep reading

Tax Question: Hi, I came to UK in 2000 and claimed non-domiciled resident status for seven years. Just before the end of the seventh year I made an investment in silver futures via a US broker, which made a profit of circa £100,000. Shortly after the seven years when I was no longer eligible for non-dom status, I made a similar investment which went the other way and lost ~£100,000. I have been claiming this as a loss on my tax return every year since. In 2004/5 I invested money into an offshore wrapper in the form of a life insurance policy with FPI. If I now wish to take money out of this policy over and above the amount I originally invested, can I use the brought-forward claimed loss against the gain from the life policy? Would HMRC need to see the investment details of the loss-making investment after this much time. I am not sure that I still have those details. Thanks, Paul...keep reading

Tax Question: Thank you for your very concise answer. If that UK resident goes abroad and ,then being non resident makes a gift,would this count as a PET for IHT? What would be the position if he becomes non domiciled,please?...keep reading

Tax Question: With regard to your recent STEP clarification with HMRC regarding offshore trusts and UK residential property, my understanding is that if I transfer a UK residential property wholly to an offshore company whose shares are owned by an Excluded Property Trust, then the property in question is not classed by HMRC as excluded property. If that is the case, does the trust lose it's excluded property status (no other assets situated in the UK)?...keep reading

Tax Question: Keeping an overseas non dom investment account clean A non dom subject to the arising basis of taxation has an overseas mixed investment account linked to an investment portfolio. The account is used to buy and sell shares, pay investment platform service costs as well as receive any distributed interest or dividends. The non dom pays UK capital gains and income (interest and dividends) tax. How does he keep the account clean so that it is possible to remit the UK tax paid income and capital gains without being subject to UK remittance taxation? Note most platform providers only allow one account per investment portfolio but they do allow transfers from that account to other accounts....keep reading

Tax Question: I am following up on the following question submitted more than a month ago to which I have not seen a reply. Thanks I have a question on non-dom mixed fund cleansing. As I understand there a 2-year window ending on April 5, 2019 for the cleansing of mixed funds. Assume an overseas investment with a historical cost consisting entirely of untaxed funds is sold before April 5, 2019 (i.e. within the 2 year window) and realizes a capital gain which is taxed on the arising basis. Is it correct that the realized capital gain (which has been taxed) can be segregated from the sale proceeds, placed in a separate account and eventually remitted to the UK without further taxation? Is this also the case if the sale takes place after April 5 2019 (i.e. outside the2-year mixed fund cleansing window)? Or, will the usual pro rata rules apply and any remittance to the UK out of the sale proceeds will be a mixed fund remittance carrying a pro rata share of the untaxed original cos...keep reading

Tax Question Hi A foreign individual client has 50 shares in an offshore company, registered in Liberia which owns two properties in the UK. The client is elderly, and would like to settle the shares in a UK trust, to avoid disputes by heirs in the future. What as the immediate and longer term tax consequences on a non dom and,non resident person settling shares in an offshore company in a UK trust, presumably this will be relevant property trust....keep reading

Tax Question: A non dom eligible for mixed fund cleansing purchased shares at a cost of pounds 20000 consisting of pound 120000 capital, pound 2000 gains and pounds 6000 income. The non dom subsequently sells the shares offshore for pound 15000 (a loss of pound 5000). Should the allocation to the offshore accounts be done on a proportionate basis (pounds 9000 income, pounds 1500 gains and pounds 4500 income)? HMRC guidance on cleansing of March 2017 does not address this issue. HMRC's Residence, Domicile and Remittance Basis Manual at RDRM35030 addresses similar scenarios but not the situation where the shares are sold and retained offshore. A common theme appears to look for the make up of the original funds. Would the outcome be impacted by the share sale taking place before or after April 6 2008....keep reading

Tax Question: What is uk IHT position on non uk assets for a non uk domicile person( Indian) but long term uk resident now losing the non Dom status? Thank you...keep reading

Tax Question: Is it correct that as a non-UK resident, one can transfer monies (capital and income) between UK and overseas without any tax liability ? I was also granted non-UK domicile for income and capital gain tax purposes back in 1996 by the then Inland Revenue. Does the "Cleaning of Mixed Funds" apply to us at present?...keep reading

Tax Question: If a UK non dom puts an offshore clean capital cash balance on time deposit and the interest paid on maturity is credited to a separate interest acccount, does the capital amount remain clean for remittance purposes? Thank you...keep reading

Tax Question: I have numerous questions concerning tax efficiencies in the UK, and some or none of them are linked or correlated to each other. My parents currently own 5 properties, all of which has appreciated a lot in recent years. Their intention is to pass down the property to both myself and my younger brother. Currently, IHT thresholds are at 325k GBP but will go up to 1mm by 2021. 1) If i setup my own company, be it a UK company or a Cayman Islands offshore company and have my parents sell the property into the company, we will have to pay stamp duty (which is ok), but they will be omitted from paying CGT as it is their first property. The company now holds the property. Is there a problem with this? Can we freely transfer the shares of the company between myself, my brother, uncles etc? and if so, is there a change of ownership tax? What is there to stop us from selling the 2nd properties (registered in my mum's name) to another company? 2) Is there any sort of tax benefit...keep reading

Tax Question: A non-res non-dom owns a BVI company which contains private equity and mutual funds (no property). This is held in an offshore trust, settlor included. After moving to the UK, whilst remaining non-dom, how might payments out of the trust be taxed to the settlor, and his UK res and dom wider family. Thank you...keep reading

Tax Question: I satisfy the relevant qualification requirements and own a mixed investment portfolio with capital gains set up with: a) Capital from an investment portfolio owned prior to coming to the UK b) Real estate purchased prior to coming UK resident and sold whilst UK resident prior to April 2008. My wife who does not satisfy the relevant qualification requirements and I have periodically owned the portfolio. I have owned the portfolio from February 2017. I see two rebasing and cleansing opportunities: Rebasing and cleansing above-mentioned mixed investment portfolio account Liquidate the portfolio and nominate transfers into: a) A (clean) capital gains account for the pre 6 April 2017 gains b) A clean capital gains account for post April 2017 gains (on which UK CGT is due) Thereby leaving the mixed non gains component. I then plan to remit the content of the two capital gains accounts to the UK. I have the relevant investment account information to support this ...keep reading

Tax Question: An offshore trust settled by a non UK person with offshore Trustees owns the shares of an offshore company who owns a UK residential property. Will the Trust be subject to the 10 years anniversary charge bearing in mind that all the beneficiaries are UK rnd. Many thanks....keep reading

Tax Question: GWR and EPTs following a gift to a non-dom. Where a UK dom gifts to a non dom spouse say £1m of overseas wealth. Presumably the first £325k is the restricted exempt amount and the remainder a PET? If the non dom establishes an EPT is this appropriate? Assuming so, if the original UK dom owner subsequently benefits is this a GWR? Is it a GWR if they could benefit but don't from the EPT? Is it better to set up 2 gifts (£325k and the excess, under 2 EPTs)? Thank you...keep reading

Tax Question: Hi, I am a UK resident since 2016 and a french national. I am married and my wife is British and she owns (solely) a property here. I have a property in France in which I was living before coming to the UK and this is my only property. I want to sell my property in France . Is there any taxes for me to pay in the UK on the surplus (capital gains) ? Thanks...keep reading

Tax Question: As a US citizen and a UK resident, I have been on a remittance basis. Starting tax year 2018, I will switch to pay UK tax on an arising basis on my US-sourced dividends and interest start in 2018/2019. Question 1: If I had bought a public-traded US stock/stock option in 2017 and then sell it in March 2018, I don't have to report it. If I sell it after 6 April 2018, then I have to report on UK tax return? Question 2: If I had bought that security in 2017 and then sell it in after 6 April 2018 at a loss, can I claim relief for capital loss in the UK? Question 3: Do I use SA108 form for the disposal of these foreign shares and foreign stock options? Thanks....keep reading

Tax Question: Dear Sirs, the liability for UK IHT on UK properties even if owned through offshore companies or Trust is applicable only to UK resident non domiciled individual or everybody who owns a UK property through an offshore company or Trust regardless their UK residency status? Many thanks...keep reading

Tax Question: What are the UK tax considerations where a Non UK Domicile and Non UK Resident wife gifts UK bank account funds to UK Resident unrelated UK resident individuals. These individuals are her UK resident husbands children from a former marriage. Thanks....keep reading

Tax Question: What are the benefits of transferring a UK property to UK tax resident non-doms ? Residential Property Value £3m is held in offshore company and company is owned by trust. Property is being occupied by UK tax resident non-doms, beneficiaries of offshore trust. Should structure remain in place...keep reading

Tax Question: Dear Sir/Madam My uncle unexpectedly passed on without leaving a will just a few months ago and through the provisions in the Act for Distribution of an intestate the beneficiaries were his two surviving sisters. Letters of Administration were granted by the High Court of Malaya to appoint my mother and aunt to deal with his estate. My mother and aunt, 90 and 87 years of age respectively, have in turn willed to distribute the estate equally amongst their children and each has given the Power of Attorney to their eldest child to administer the execution of the estate. My mother though has decided to distribute her part of the estate to us immediately. Qst. With the impending Finance Act 2018 what would my tax position be if I as a citizen of the UK do receive some monies before April 6 2018 and the balance after that date? Thank you Kind regards...keep reading

Tax Question: Ref article: 2017 non dom changes enacted of 28/11/17 Pleased to hear that there is more clarity and that those who qualify for the rebasing and un-mixing of their accounts can now proceed in earnest. My understanding is that the consequences of any mistakes made in the un-mixing of the mixed accounts could be quite significant. If this is correct would it not be prudent to postpone the actual execution of the exercise until the HMRC guidance notes have been released? Any indication as to when these might be available?...keep reading

Tax Question: A US citizen has been living and UK for last 6.5 years. He is currently taxed under remittance basis and would be taxed as UK domicile in April 2018. 1. Between now and April 2018: If he manages to find a UK bank willing to take his US assets as collateral to secure a UK loan (in £) to purchase a UK property, with the service payment (principal and interest) paid out of his UK salary, would either the loan itself or subsequent payment be considered as a remittance? 2. After April 2018: would anything change if he takes out a similar loan after April 2018? 3. Would anything in 1 change if it is an offshore bank who makes a UK loan (in £) based on his US assets as collateral? Thank you....keep reading

Tax Question: Could you please give an update on the status of the 2017 Finance Bill with regard to the non dom issues including capital rebasing to April 2017 and the "unmixing" of overseas funds. Bob...keep reading

Tax Question: My wife (British passport)and myself (Hellenic passport)donot reside in the uk. We own residential properties through offshere companies Would it be beneficial for us to hold the offshore companies in a foreign trust Thank you...keep reading

Tax Question: A non dom able to benefit from capital rebasing and separating mixed funds could consider the merit of transferring wealth to say adult children. The transfer would be subject to the PET 7 year rule however there would no exposure to cgt (the assets had to be liquidated to benefit from rebasing- and separating the mixed funds) or remittance tax even if the adult children choose remit the funds to the UK (as long as there is no benefit to any of the non dom's connected parties-) . Preference could be given to wealth transfer of the unmixed Income- and Capital gains- accounts rather than the Clean capital- funds as the latter can be transferred by the non dom to the UK without any remittance tax exposure. Am I missing something? Bob...keep reading

Tax Question: If a non dom and a non resident sells a uk property held in off shore company will the proceeds come under iht?? What is the cgt on properties held by non resident?? Is it based on rebasing meaning difference in value at april 2015 to the time of sale...keep reading

Tax Question: I found chapter 3 Separating mixed funds- of the Tax planning for non doms 2017- both insightful and useful. It states that it is not necessary to identify all of the constituent parts of the mixed fund. As long as the taxpayer can show the account contains a particular amount of capital, capital gains or income, that amount can be transferred out of the mixed account into a new account leaving the remainder of the funds in the mixed account-. Consider a non dom able to identify the original clean capital, Income and capital gains who has incurred overseas expenses since coming to the UK. Consequently the current value of the mixed- funds is less than the sum of the above mentioned constituent parts. The non dom would thus be able to remit more clean capital- by preferentially identifying the clean- capital and capital gains- rather than the capital gains- and Income- (in the latter case the remainder would consist of the clean capital less the overseas incurred expen...keep reading

Tax Question: A question on segregates capital gains from disposal proceeds. Assume a non dom taxed on arising basis realizes a capital gain of £1'000 on sale proceeds of USD 20'000 offshore. The original investment is a mixed fund consisting mainly of untaxed income from previous remittance basis years. He wants to extract the capital gain from the sale proceeds bank account to a separate capital gains bank account. He is indifferent as to whether he receives the capital gain in £ or in USD at this stage. What is the correct way (from a tax point of view) to do this segregation, or are both methods acceptable: a) Convert the £ 1000 capital gain into USD using the same exchange rate as used for the disposal and the calculation of the gain (say 2:1=USD 2000). Transfer the USD 2000 to a USD capital gains account. b) Credit a £ capital gains bank account with the £1000 capital gain as originally calculated and debit the USD disposal bank account with the USD equivalent based on the...keep reading

Tax Question: Hi. This is a hypothetical situation where the Limited Company (Subsidiary) is incorporated in UK, having no Permanent Establishment and no clients in UK. And the Holding Company is situated in Bulgaria. In this case which country the Subsidiary Company will be considered as Tax Resident and what are taxes that the Subsidiary will be liable to pay. Also what will be tax liability of the Holding Company if it receives Dividend, Interest and Capital Gains from the subsidiary....keep reading

Tax Question: Can a UK Limited Company (a Subsidiary of a Bulgarian Holding Company) having no permanent establishment and no clients in UK be non-resident in UK for tax purposes (Explain Why). If yes, is there any kind of income on which it has to pay taxes in UK only?...keep reading

Tax Question: I would like to ask about the idea of someone buying lots of shares in the stock market and holding them for a long time.  If these shares then double or more in price and would therefore result in a very large capital gain, would it be possible for the owner of the shares to move abroad to e.g., Dubai where there is no tax payable, and then sell the shares, and remain there for 5 years to become non resident before coming back to the UK?  Would that work in terms of not having to pay any capital gains tax on the gains?...keep reading

Question: Are there any UK tax implications for me (non-UK domicile non-UK resident) to send 11.000 pounds to daughter (non-dom but currently UK resident- since two years ago ) who is studying at university level in the UK at present ? Can I send the fund from my Jersey sterling account to her Isle of Man sterling account on which she can then write out a cheque ? Thank you...keep reading

Tax Question: Is the Dutch ZvW-contribution paid by a UK resident in fact "Dutch tax" and therefore potentially eligible for foreign tax credit relief? Or is this a non starter?...keep reading

Tax Question: Hi Would a non-resident person be subject to income tax on any interest he charged on a loan to my UK Ltd company (interest would be rolled-up annually)? I am establishing a company to buy some land and build a house to let out but banks are not really interested in lending a startup company money on that basis. I have a non-resident family member who will lend the money but wants to charge a commercial rate of interest (I assume that could be high if no bank will do it) and doesn't want to pay UK tax. Is this possible? Thanks Yasman...keep reading

Tax Question: When relying on a tiebreaker clause with a DTT, is it necessary to repeat the process each year?...keep reading

Tax Question: I am not resident nor domiciled in the UK. I hold shares of UK companies in Jersey. Are these assets liable for UK Inheritance tax? Would putting these assets into an overseas company protect these assets from UK Inheritance Tax? Would the use of a Jersey trust assist in this case? Would the answers to these questions be different if I were not resident but was domiciled in the UK?...keep reading

Tax Question: I currently hold UK listed AIM shares and i'm currently resident in the UK. If I sell these shares whilst principally resident in Guernsey, would I pay any CGT on disposal of these shares?...keep reading

Tax Question Hello I'm trying to get information on the effect on Chinese withholding tax on interest paid to a foreign company. In particular, the effect of the Singapore and/or UK double tax treaties if paid to a company resident there? Thanks...keep reading

Tax Question: A DTA states "Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State." Does that mean that any Directors fees earned for board memberships in the country subject to the treaty are not taxable in the UK?...keep reading

Tax Question: I'm writing a second edition of my book. If the book is published in the U.S., I have to pay a flat 30% withholding tax on all earnings. The publisher has asked if I would consider publishing via their UK office. As a non-resident British citizen, do you know how I would be taxed on a royalty advance and on any subsequent royalties that follow?...keep reading

Tax Question: I am not UK tax resident. If I provide professional independent services FROM the UK to non-UK clients but the business has no fixed premises in the UK (just a virtual office address) will HMC tax my business profits? [I understand (I think) that under the DTT with my country of residence (Switzerland) I may be taxed if I offer services from a fixed base in Switzerland.¨]...keep reading

Tax Question: Hi If a Singapore company receives dividends from a Russian company what would the withholding tax implications be please? It holds 40% of the Russian company.  Thanks  Jacz...keep reading

Tax Question: Hi, 1. The royalties are sold to a UK company by a Hong Kong company, with a deferred payment. The royalties are then leased to a Ukrainian company and the Ukrainian company makes regular payments in respect of the royalties to the UK company. The UK company uses funds so received to repay the Hong Kong company the deferred consideration outstanding on the royalties. Are there any restrictions which apply to the above in the UK? Does withholding tax apply to the payments which are made from the UK to Hong Kong? 2. Does any withholding tax apply in the UK if interest on a loan is paid from a company in Ukraine to a UK company and then paid on to a company in Hong Kong? 3. If dividends are declared from a Ukrainian company to a UK company and on to a Hong Kong company, does any withholding tax apply in the UK? 4. Is there a tax on dividends which are declared in Hong Kong in favor of a non Hong Kong resident shareholder? Many thanks...keep reading

Thanks for your answers and I have more questions after the arrows or comments after your answers >>> >>>>Home in the UK? What does a home in the UK mean exactly? I don't own any property. I do not have a rental contract in my name but I do have a place I can use to stay with my son, daughter and wife (she is only there some of the time) in Edinburgh. Is that a home? So is a 'home' mean owning a property? And I just have a 'place to live'? This is the sentence I am worried about: 'there is or was at least one period of 91 consecutive days when you had a home in the UK.' 1.You would certainly have a 3 year tie. >>>YES 2.You may well have a family tie >>>>YES 3.and an accommodation tie, depending on how long you visit them/stay in the UK. >>>>> YES: 'The individual will have an accommodation tie for a tax year if they have a place to live in the UK and: It is available to them for a continuous period of 91 days or more during that tax year, and they spend 1 or more nights there ...keep reading

Tax Question: Can you become UK tax resident WITHOUT meeting the current conditions for tax residency? For example, suppose as an "arriver" you only fulfill the single requirement of available accommodation and you never stay more than 100 days in the UK can you be "deemed" tax resident if you refer to yourself as UK resident for other purposes. And would it make any difference to the UK tax authorities if you were a "Tax Nomad"....keep reading

Tax Question: Hi, Love the site! Finding it really useful. I am currently uk resident (and domiciled) but going to move to Malta next year with the view to being non uk resident and plan on being away from uk for more than 5 years. I am currently working for a uk company (on contract) via a limited company. There is a distinct possibility that when I tell them I'm leaving they will offer to let me work remotely. If not then I would not be working in Malta and living off my own funds. I understand the non residence test rules and would deliberately spend less than 16 days in uk for each of next 3 years to ensure I am non uk resident and would not return to uk (permanently) for at least 5 years (if at all). - If I work from malta (software development via remote VPN connection to client pcs) via my uk limited co, am I correct in understanding that I would pay uk corporation tax on the company profits but no other income tax in uk if I do not draw a salary? - my understanding is tha...keep reading

Tax Question: Non Resident CGT. Non resident coming back to UK. Purchased / acquire shares whilst non resident in EU country. If sells them whilst non resident then still not UK CGT event even if they come back to UK . I think the anti avoidance rules on sale of assets whilst "temporarily" non resident was in respect of pre - existing Uk assets from before you were non resident rather than assets acquired whilst non resident. So if pregnant with a gain best to sell them whilst non resident rather than wait and end up UK CGT on all. Is this correct? tks...keep reading

Tax Question: Hello, I am looking to setup a new business venture selling websites to small business in UK and USA I am a UK Citizen and resident and will want to work from Thailand have the following questions; 1. should i trade as a sole trader then switch to a UK Company and file Non Residence? 2. Should I just set up a offshore company and simply trade offshore? 3. Would it be a good idea to have freelance sales people in the UK? Please give me your thoughts thanks...keep reading

Tax Question: If a loan is made to a company by a non resident and the company goes bust can that loan be offset against UK tax on other earnings ?...keep reading

Tax Question: when is a non-resident and a nondomiciled person considered a resident and if proved to be a resident then what are the tax consequences?...keep reading

Tax Question: Please could you tell me if I am interpreting the Second automatic UK test correctly. I have owned an apartment in the UK for 20 years and I intend to spend up to 80 days each UK tax year there,200 days a year in the home I rent in Malta and 60 days in a house I own in the USA. Am I correct in thinking that although I will spend a "sufficient amount of time" in my UK appartment (at least 30 days) because I spend more than a "permitted amount of time" in each of my other two homes (more than 30 days) that I do not meet this test ?...keep reading

Tax Question: Hi I am in the process of purchasing a holiday home in Israel. I am deciding who should be the buyer. I am a UK resident tax payer with three adult children. My concerns are inheritance tax, double taxation if the purchase is in the joint names of myself and my wife. If it is bought in the children's names then when they buy a home they will pay second home stamp duty. Is there any type of trust that can work efficiently?...keep reading

Tax Question: hoping someone can advise... I have clients - a Husband and wife in the UK. they have compensation after an industrial accident. This money is held by a UK trust of which they are the trustees. They wish to buy a property in Spain with the money in the trust. The property will generate some income each year and they want this income to be "earned" by the trust as the holder of the property. I cannot find much at all online about this. The Spanish tax office havent shed much light on what they require either. Any examples of anyone from the UK doing this in Spain?...keep reading

Tax Question: Hi, I'm trying to read between the lines in some of your guides and articles but still have questions on tax payable by offshore trusts/beneficiaries. If a uk resident pays into an offshore discretionary trust and then becomes non resident, are capital and income distributions free of tax when taken while non resident? Are there any exceptions to this through anti avoidance provisions? And does it make any difference if the original source income was connected with employment or self/employment/close companies? Thanks M...keep reading

Tax Question: Hi My wife who is UK resident is just about to receive a cash gift from her Italian resident father for the purpose of buying a property. My wife has never filed a tax return in the UK as she doesn't have any asset or income. Any tax liability arising? Many thanks....keep reading

Tax Question: Hi, Does a Treaty Non Resident company need to be resident in another jurisdiction ? I'm thinking about the case where a UK-registered company is deemed Treaty Non-Res due to the director being non-UK resident and effective control of the company being carried out abroad as well. So, in that case does the TNR status of the UK-registered company make it resident of the country where the director exercising control is resident ? Or does this make the company not resident of any jurisdiction at all ? Thanks. SGB...keep reading

Question: I am nearing retiring age and have an established licensed UK company (trading for 35 years). There is a Guernsey company interested in continuing the business but basing the comany in the Channel Islands.I can sell (share exchange) my UK company to the offshore Guernsey company & retain 50% of the shareholding in both companies to give me a good annual dividend. Can I also act on a consultancy basis taking and declaring an income from Guernsey....keep reading

Tax Question: I have a situation where a company was incorporated in the UK 5 years ago to provide telecommunication services to the UK market, i.e. mobile phone chips. Market is purely UK. The majority of the directors were UK based and staff based in the UK. As a result of the downturn in the market, only one staff remains and one director. Both staff and director are based in EU. The company still exists and services the UK market but staff are in EU. Is there a risk that the residency of the company could have migrated away from UK and to EU? Can it be argued that as the company is UK incorporated and services UK customers that the residency continues to be in the UK? the company is loss making. thank you...keep reading