Non-Resident & Offshore Tax Planning

Becoming non-resident is for many people the simplest and most effective way of avoiding UK tax, particularly capital gains tax. In many cases, those who choose to move their assets offshore and become non-resident achieve huge savings on their taxes. It is extremely important, however, to ensure that before taking such a major step you are aware of all the dangers and pitfalls that go hand-in-hand with such rewarding tax benefits.

UK tax benefits don't just arise from being classed as non UK resident. If you're lucky enough to be classed as a non UK domicililiary you can obtain beneficial UK tax treatment even if you remain in the UK. Again, though taking advantage of these tax benefits is often not straightforward, and it's essential that you know what you can and can't do especially after the recent Budget changes.

Chapter 1 - Introduction

This guide is designed to help those living or working abroad pay less tax on their UK income and investments. It also contains important information for those who live in the UK but wish to use the offshore tax rules to shelter their income and gains from the taxman....keep reading

Chapter 2 - Residence, Ordinary Residence & Domicile

UK residents who are also UK domiciled have to pay UK income tax and capital gains tax on their 'worldwide income and gains'. No matter where in the world your assets are located or in what country your income is earned, it all falls into the UK tax net...keep reading

Chapter 3 - How to Become Non-Resident

Some people emigrate to soak up the sun and live in an exotic location. Others leave the country to escape the UK taxman. However, tax rates in most industrialised countries are higher than...keep reading

Chapter 5 - How to Avoid UK Capital Gains Tax-Learn more by reading this!

In order for an individual to avoid capital gains tax it is usually necessary to remain non-resident for more than five complete tax years where you leave the UK after 5 April 2013....keep reading

Chapter 4 - How to Avoid UK Income Tax

A person leaving the country to avoid income tax needs to remember that the UK, like most countries, claims the right to tax income arising in...keep reading

Chapter 6 - How to Avoid Inheritance Tax

The general rule is that an individual domiciled in the UK will be subject to inheritance tax on his or her worldwide assets. Non-UK domiciled individuals are only subject to UK inheritance tax on their UK assets...keep reading

Chapter 7 - The Advantages of Being Non-Domiciled

Individuals who are UK resident/ordinarily resident but also retain a foreign domicile can enjoy preferential tax treatment in a number of respects....keep reading

Chapter 8 - Working Overseas: A Powerful Tax Shelter

If you go abroad under a full-time contract of employment you will usually be regarded as non-resident and not ordinarily resident from the date of departure if...keep reading

Chapter 9 - Making Use of Double Tax Relief

9.1 Introduction UK residents have to pay UK tax on income from UK and overseas sources. To prevent overseas income being taxed twice -- once abroad and again in the UK -- relief is given in one of...keep reading

Chapter 10 - Tax Benefits of Offshore Trusts

An offshore trust is a legal entity into which you can pass ownership and control of your assets. The assets are then managed by a trustee...keep reading

Chapter 11 - Tax Benefits of Offshore Companies

A UK resident company is subject to UK corporation tax on its worldwide income and gains. By contrast a non-UK resident company is only subject to...keep reading

Chapter 12 - Investing in UK Property: A Case Study

It is useful to consolidate some of the issues covered in previous chapters and consider a typical scenario, where a UK non-resident...keep reading

Chapter 13 - Becoming a Tax Nomad

Just as it is possible to be resident in more than one country, it is also possible to be resident in none. Such individuals are...keep reading

Chapter 14 - Double Tax Treaties

The rules detailed earlier in this guide explain the concepts of 'residence', 'ordinary residence' and 'domicile' and identify when...keep reading

Chapter 15 - Buying Property Abroad

Many UK property investors are thinking about buying property abroad. Many are interested in the emerging markets of Eastern Europe. Others stick to traditional favourites such as France, Italy and Spain....keep reading

Appendix I: UK-Spain Double Tax Treaty

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Appendix II: UK Treatment of Overseas Entities

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