Pritchard
Englefield Offshore Trusts
Pritchard Englefield Offshore Trusts
Do
you have a non U.K. domicile? If you have a non U.K. domicile
of origin you may be able to retain this for most tax purposes
and yet reside in the U.K.
With
a non U.K. domicile consider setting up an off-shore trust
and possibly an underlying company to own property and other
investments in the U.K. According to your circumstances, you
could retain an interest in the Trust and at the same time
avoid U.K. Inheritance Tax and Capital Gains Tax on such assets
and mitigate U.K. Income Tax through utilising the remittance
basis.
Pritchard
Englefield can advise you on your domicile and tax position
and if appropriate Pritchard Englefield can, through their
associates in Guernsey, Pritchards Secretarial Services Limited
quickly form a trust and any underlying company so as to create
a tax efficient structure for the future.
Offshore
Trusts
Beware! benefit in kind charges for Income Tax purposes under
Section 145 and Section 146 of the Taxes Act 1988.
Decisions
of the Court of Appeal in 1999 make it clear that where an
individual occupies a property owned by a company he can be
held to be a shadow director and therefore liable to substantial
Income Tax charges under Section145 and Section 146 if the
occupation is rent-free. As a consequence there is now a real
risk of liability to Income Tax if an off-shore company is
used to own property to be occupied by the non U.K. domiciliary,
unless a strict regime is followed to demonstrate the person
is not a shadow director. Such an arrangement is therefore
to be avoided and other arrangements involving Trusts should
be considered.
For
further information on Pritchard Englefield Offshore Trusts
visit the Pritchard Englefield Website.
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