UK UAE residence - any ideas?

[billybobs]

Any advice on the following -
Im moving from the UK to UAE in 18 months to live for tax reasons etc.
We have a number of companies in the UK that have recently started to do well, end of the year will be £1mil a month. Obviously we need to pay corp tax on this in the UK setup.

How can I get this money from the UK accounts being made in the next 18 months to accounts in another country / name, then when I arrive in UAE I can ”˜sell' some software I recently start in UAE and get paid using this money, so I will pay no tax on the money as in UAE

1. How could I transfer this money to another bank account out of the UK company accounts so it has no connection to me, keep it safe, then transfer back to my UAE acc when setup?

2. My idea was try and get some europeans to setup UK companies as UBO, run the income from my sites through these companies, when they hit the company bank acc, convert to crypto, then when in UAE in 18 months convert this crypto to fiat and put in UAE bank as some type of software some one purchased from us and paid in crypto?

3. Im concerned about the UBO setup and if its reliable / can trust money in these accounts, if they need re verification etc as its all large money, even converting to crypto. Any better idea?

 

[CaptK]

You are over thinking it.

You can set up a company in the UAE and plough the profits in as capital contribution and or investment.

Eventually you move the whole operation to UAE and then use the UK entity as a subsidiary.

 

[Martin Everson]

billybobs said:
1. How could I transfer this money to another bank account out of the UK company accounts so it has no connection to me, keep it safe, then transfer back to my UAE acc when setup?
Click to expand...

Why?

billybobs said:
2. My idea was try and get some europeans to setup UK companies as UBO, run the income from my sites through these companies, when they hit the company bank acc, convert to crypto, then when in UAE in 18 months convert this crypto to fiat and put in UAE bank as some type of software some one purchased from us and paid in crypto?
Click to expand...

Why?

billybobs said:
3. Im concerned about the UBO setup and if its reliable / can trust money in these accounts, if they need re verification etc as its all large money, even converting to crypto. Any better idea?
Click to expand...

Wait until your considered tax resident in UAE.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[billybobs]

CaptK said:
You are over thinking it.

You can set up a company in the UAE and plough the profits in as capital contribution and or investment.

Eventually you move the whole operation to UAE and then use the UK entity as a subsidiary.
Click to expand...

Thankyou.

Thats sounds good, but what happens in the next 18 months when I'm running the UAE company from the UK and the UAE company is making profits? As i will be controlling it from the UK.

With your plan - in 18 months i arrive in the UAE with x million in the UAE bank. Will HMRC not see exactly what has been done - moved money for the last 18 months from the UK to UAE and then effectively 'cashed out' in UAE now i live there which is all tax free and avoided any UK tax?

If i return back to the UK etc in say 10 years time, i don't want questions from HMRC around what was done

 

[billybobs]

Martin Everson said:
Why?



Why?



Wait until your considered tax resident in UAE.
Click to expand...

The question is, if i currently have UK companies making good money and i cant move to UAE for 18 months, the best case I will be liable for any CT in the UK. If i was to send money now from the UK companies to somewhere else, in 18 months when i arrive in UAE and 'cash out' will HMRC not see exactly what ive been doing for the past 18 months to avoid UK tax?

 

[CaptK]

18 months is a long time.
If I understand correctly you want to pay CT but not IT?

 

[Martin Everson]

billybobs said:
The question is, if i currently have UK companies making good money and i cant move to UAE for 18 months, the best case I will be liable for any CT in the UK.
Click to expand...

UK companies will be liable for UK corporate tax and not you personally.

billybobs said:
If i was to send money now from the UK companies to somewhere else, in 18 months when i arrive in UAE and 'cash out' will HMRC not see exactly what ive been doing for the past 18 months to avoid UK tax?
Click to expand...

Send money how? i.e as dividend payment, wages, expenses? What type of UK taxes are you avoiding?

You are not explaining yourself well at all. A company is a separate legal entity and so are you. You are talking about taxes as it you and company are one and the same or interchangeable. You need to explain in what form the payments out of the company are occurring.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[billybobs]

CaptK said:
18 months is a long time.
If I understand correctly you want to pay CT but not IT?
Click to expand...

Income tax in the UK is not an issue as i will not be taking any money from the company. Im talking about not paying CT on the UK company. So any profits within the UK company i want to get out, send somewhere, then when i move to UAE in 18 months the money can come into the UAE company pay no tax and to me personally and pay no tax if i want.

 

[Martin Everson]

There is no withholding tax on a UK companies dividends paid to non-residents. So if you have a foreign shareholder for your UK companies sitting in Dubai. The companies profits after CIT has been paid can be paid out tax free to them.

Last edited: May 15, 2021
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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[CaptK]

Martin Everson said:
There is no withholding tax on a UK companies dividends paid to non-residents. So if you have a foreign shareholder for your UK companies sitting in Dubai. The companies profits after CIT has been paid can be paid out tax free to them.
Click to expand...

A salary can also be paid to them 😉

 

[billybobs]

Martin Everson said:
UK companies will be liable for UK corporate tax and not you personally.



Send money how? i.e as dividend payment, wages, expenses? What type of UK taxes are you avoiding?

You are not explaining yourself well at all. A company is a separate legal entity and so are you. You are talking about taxes as it you and company are one and the same or interchangeable. You need to explain in what form the payments out of the company are occurring.
Click to expand...

Income tax in the UK is not an issue as i will not be taking any money from the company. Im talking about not paying CT on the UK company. So any profits within the UK company i want to get out, send somewhere, then when i move to UAE in 18 months the money can come into the UAE company pay no tax and to me personally and pay no tax if i want.

Martin Everson said:
There is no withholding tax on a UK companies dividends paid to non-residents. So if you have a foreign shareholder for your UK companies sitting in Dubai. The companies profits after CIT has been paid can be paid out tax free to them.
Click to expand...

Thankyou,

So if my UK company that im a director and shareholder of adds my Dubai company as a shareholder, my uk company could make £1 mil profit, pay 19% Corp tax in the UK and the rest of the profit pay to the Dubai compnay (shareholder) and the company Dubai company pays no tax?

Any way to not pay the initial 19% corp tax in the UK?

 

[CaptK]

billybobs said:
Income tax in the UK is not an issue as i will not be taking any money from the company. Im talking about not paying CT on the UK company. So any profits within the UK company i want to get out, send somewhere, then when i move to UAE in 18 months the money can come into the UAE company pay no tax and to me personally and pay no tax if i want.

Thankyou,

So if my UK company that im a director and shareholder of adds my Dubai company as a shareholder, my uk company could make £1 mil profit, pay 19% Corp tax in the UK and the rest of the profit pay to the Dubai compnay (shareholder) and the company Dubai company pays no tax?

Any way to not pay the initial 19% corp tax in the UK?
Click to expand...

Correct, or you can use the profit after tax as capital contribution to the UAE company.

 

[Martin Everson]

billybobs said:
So if my UK company that im a director and shareholder of adds my Dubai company as a shareholder, my uk company could make £1 mil profit, pay 19% Corp tax in the UK and the rest of the profit pay to the Dubai compnay (shareholder) and the company Dubai company pays no tax?
Click to expand...

HMRC will not accept this if they investigate and find there is common control and ownership between UK and Dubai company. That structure is an artificial construct for the sole purpose of tax avoidance and will land you in hot water with HMRC. Also the Dubai company ownership, control and any transaction between it and your UK company would need to be done at arms length. There cannot be common ownership between the two companies.

Plenty of people use the arms length approach. For example the billionaire Sir Richard Greene who ran Arcadia Group in UK had his wife sit in Monaco tax free as shareholder of his empire while he ran the UK business and all dividends were paid out to her tax free after corporate tax was paid on UK profits.

billybobs said:
Any way to not pay the initial 19% corp tax in the UK?
Click to expand...

Not legally.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.