Let's say you have £5m in assets. (£4m invested in american/global index stocks + £1m UK home). Obviously, if you use it without any structure, you'd be liable to capital gains tax and inheritance tax. Ideally, you'd like to stay in the UK as you have family and friends here, plus I hate hot weather. Before the 2008 trust fund law change, you could've put into a trust fund (and pay the relevant tax) and that was that. You get to live in the UK with relative low tax and asset protection when you pass. But now with the 20% surcharge that's out the question.︀ You could also go through the FIC route, but would you really have access to︁ your funds if you really needed them back (lets say to buy another £1m property,︂ or an expensive car)? the tax isn't great either as you pay corporation tax (25%︃ soon) yearly. Foreign investors in the UK usually use the Non-dom status so avoid the︄ capital and IHT problems i've listed above, but that isn't an option for myself as︅ a UK citizen
Is the only option really to move out offshore? Are there offshore's︆ with colder weather?
The UK has a 5 year period after you move offshore before︇ your assets become IHT free. So, I was thinking of creating a Dubai company, and︈ moving all the assets there for the 5 year period (as it becomes business property︉ and out of reach of HMRC) before it becomes exempt. At the same time living︊ somewhere in the Carribean. And then moving the funds to another offshore company (perhaps Caribbean︋ or cyprus) for security and not to go Dubai every 6 months. Is this plan︌ unrealistic? Does anyone know local solutions for this problem?
Is the only option really to move out offshore? Are there offshore's︆ with colder weather?
The UK has a 5 year period after you move offshore before︇ your assets become IHT free. So, I was thinking of creating a Dubai company, and︈ moving all the assets there for the 5 year period (as it becomes business property︉ and out of reach of HMRC) before it becomes exempt. At the same time living︊ somewhere in the Carribean. And then moving the funds to another offshore company (perhaps Caribbean︋ or cyprus) for security and not to go Dubai every 6 months. Is this plan︌ unrealistic? Does anyone know local solutions for this problem?
