You'll find articles in this section that cover:
- Offshore tax planning
- Overseas property tax
- Emigration to avoid tax
- Use of double tax treaties
- Offshore tax havens
- How to complete relevant tax forms and claims
- Establishing non residency overseas for tax purposes
- Using offshore tax haven companies and trusts
- How non UK domiciliaries can avoid UK taxes
- Minimising tax when you're working or trading abroad or in the UK
- And much more... How a UK company can reduce UK tax by using double tax treaties.
The standard rule is that a company formed in the UK is UK resident for tax purposes. This means it's taxed in the UK on its worldwide income and gains. If you can get a company classed as non resident this can be very advantageous. This article looks at how double tax treaties can be used to transfer a company's residence overseas and reduce UK taxes....keep reading
Tax Tool: Non Resident Income Tax Calculator
Even if you have established non UK residence status this doesn't necessarily mean that you have no liability to UK income tax. This useful tax calculator will tell you whether you will be subject to UK income tax. You simply follow the step by step instructions....keep reading
Recommended procedures to establish central management and control overseas
If you're looking to establish an offshore company as non UK resident it's essential that you can show the central management and control as being based overseas. In this article we look at some of the recommended methods and procedures to assist in demonstrating that the management and control is abroad...keep reading
When can an overseas internet operator be within the scope of UK tax?
The internet has allowed traders to supply goods and services to customers worldwide. Whilst this is undoubtedly good for the traders it opens a 'can of worms' in terms of tax liabilities. If you're classed as trading in a country you are usually liable to tax in that jurisdiction. It's therefore very important to know when you could be classed as 'trading within' a country as opposed to trading 'with' a country. This article looks at the tax treatment of trading in the UK particularly for an internet operator....keep reading
Questions HMRC may ask when assessing the residence of an offshore company
If you're planning on setting up an offshore company to avoid UK corporation tax on the profits of a UK trade or capital gains, one of the difficulties is ensuring that the central management and control is based overseas. In this article we look at some of the questions that HMRC may raise in an enquiry into the residence of an offshore company...keep reading
How you can use an Estate tax treaty to reduce your inheritance tax bill
The UK has lots of double tax treaties - well over a hundred in fact. However these treaties are income tax treaties, and although they're useful for assessing the tax position on any income or capital gains arising to you either here or overseas, they're completely useless if you're trying to assess your Inheritance tax position. The reason for this is that the 'Taxes Covered' section of the income tax treaties do not cover Inheritance tax. In fact the UK does have some Inheritance tax treaties, however these are much fewer in number. This article looks at the impact of these Inheritance tax treaties....keep reading
Tax planning for an offshore company with shareholders coming to the UK
Many overseas individuals (usually non doms) come to the UK to live and work. A large number of them may be shareholders in an offshore company formed before they were UK resident which holds UK and overseas investments. This article looks at the UK tax impact of the UK resident director/shareholder and tax planning options...keep reading
Setting up an offshore joint venture to reduce UK tax
Many people ask whether they can use an offshore company to carry out their trade and avoid UK tax. For many UK residents this is very difficult to do however forming an offshore joint venture with an overseas colleague or supplier could be a good option. This article looks at how offshore joint ventures could reduce UK tax...keep reading
Capital gains tax and offshore foundations
The tax treatment of capital gains which arise to offshore foundations is a complex and uncertain area. It's made more complex by the fact that there is no definitive guidance on exactly how a foundation is treated for UK tax purposes. Strictly speaking it is treated as a corporate vehicle but it displays some of the characteristics of a trust. This has led to a certain degree of overlapping in the provisions. In this article we look at how the capital gains tax anti avoidance rules could apply to offshore foundations....keep reading
How to claim double tax relief on UK pensions received overseas
This Practitioner report includes a step by step look at the relevant form you'll need to complete to claim double tax relief on UK pensions. This will then allow you to receive the pensions free of UK income tax, or at the reduced rate as laid down in the relevant double tax treaty....keep reading
Should you own an overseas company directly or via an offshore trust if you want to minimise future capital gains tax?
Using an offshore company to hopefully avoid or minimise UK tax is frequently of interest to anyone looking to trade overseas. The broad plan is often to incorporate a tax haven company (eg in the BVI) and use this to carry out the overseas activities before eventually selling the business. This Practitioner Zone article looks at which is the best ownership structure if you're looking to minimise UK capital gains tax on a future disposal of the company or trade....keep reading
When UK residents can use an offshore company for good business planning
The main income tax anti avoidance rules relating to UK residents using offshore companies are contained in the transfer of asset provisions. These rules are very wide in scope but there is an exemption where there is a sound business reason for the use of the company. In this article we look at how this exemption operates...keep reading
UK protectors and offshore trusts
Protectors are often part and parcel of an offshore trust package. They can provide valuable comfort to the trust settlors (ie the person who establishes the trust) that their wishes and the wishes of the beneficiaries are being taken into account. This article looks at how an appointment of a UK resident protector would be treated for UK tax purposes....keep reading
Investments in OEICS and UK Tax
Many investors, particularly non doms may look to invest funds in open ended investment companies ('OEICS') located offshore. Primarily this will be for commercial purposes as frequently overseas investment schemes will operate through an OEIC. This article looks at the UK tax position of investments in OEICS...keep reading
Using a UK company as an agent for offshore company - USERNAME:DN - 04/12/2014Tax Question: Dear Sir/Madam, I have a question regarding a UK company as an agency of the off-shore company. I have read your articles and understand that a UK company can act as an agent of the offshore company as long as it is on arms length basis. What confuses me is the UK trade, which is why I am raising this question: Scenario A non - UK resident [wife] will be the director and shareholder of the off-shore company incorporated in a tax free haven. My client [husband], who has been a UK resident for the last 10 years will be the sole director/shareholder of the UK company. My client usually spend around 100 days in UK every year and could look into spending less. He has been a UK resident in the last 3 years but could look into being non-resident in 2015/16. However he will still have to come to UK for at least 60-90 days to deal with the clients. Now, the UK limited company, will get into contracts with the customers [based in UK], invoice them, receive the money into the...keep reading
Avoiding UK tax by gifting income to non residents
The "transfer of assets abroad" anti avoidance rules, apply to anyone using an offshore entity. This will catch UK residents owning interests in offshore companies, offshore trusts and overseas foundations and will tax offshore income on UK residents. This article looks at the position of a gift to a non UK resident individual and whether the anti avoidance rules could still apply...keep reading
