Non-dom with UK ltd company - Can I optimize it with a foreign holding?

[babaorum]

Hi,

I'm planning to become a UK non-dom and open a UK ltd.
The company will be taxable in the UK. Can I have a foreign holding company owning the shares of the UK ltd which would then pay me dividends on a foreign account? With the non-dom status, that would not be taxable.

Is this a way to take advantage of non-dom status? If not, is there another way to optimize this while running a company in the UK?

Thanks

 

[CaptK]

No, by virtue of have a running business in the UK that you are no longer Non Dom and now you are liable for all income.

 

[proexper]

CaptK said:
No, by virtue of have a running business in the UK that you are no longer Non Dom and now you are liable for all income.
Click to expand...

If you sell outside this revenue is free of tax, you only have to pay taxes for the uk sales, no?

 

[babaorum]

CaptK said:
No, by virtue of have a running business in the UK that you are no longer Non Dom and now you are liable for all income.
Click to expand...

No, I have been a non-dom in the past while running a business in the UK and my accountant at the time said it was fine.
I also read all the HMRC guidance and there was no mention of such but happy to be proven wrong 🙂

 

[Fred]

babaorum said:
Hi,

I'm planning to become a UK non-dom and open a UK ltd.
The company will be taxable in the UK. Can I have a foreign holding company owning the shares of the UK ltd which would then pay me dividends on a foreign account? With the non-dom status, that would not be taxable.

Is this a way to take advantage of non-dom status? If not, is there another way to optimize this while running a company in the UK?

Thanks
Click to expand...

If it's only about the company running in UK - you can go for a UAE company that grants you a 0% tax residence.

You can incorporate a UK LLP instead of the UK Ltd using the UAE company as a partner beside of yourself - if your customers are outside the UK or a US LLC if your customers are in the UK.

If you plan to live in the UK - this won't work legally even though the UAE banks won't report you under CRS as you have the banks opened with local residence card.

From the posts of @CaptK I could imagin he is now going a similar route.

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[babaorum]

Fred said:
If it's only about the company running in UK - you can go for a UAE company that grants you a 0% tax residence.

You can incorporate a UK LLP instead of the UK Ltd using the UAE company as a partner beside of yourself - if your customers are outside the UK or a US LLC if your customers are in the UK.

If you plan to live in the UK - this won't work legally even though the UAE banks won't report you under CRS as you have the banks opened with local residence card.

From the posts of @CaptK I could imagin he is now going a similar route.
Click to expand...

It doesn't really matter if the company is incorporated in the UAE. If I'm resident in the UK and I control the company from the UK, the company is UK resident and will pay corporate tax in the UK. Additionally, I'm not looking to avoid paying corporate tax.

 

[Fred]

That's why I mentioned if you want to live in the UK: it won't work legally.

If you plan to live in the UK an do business with a local company there will no work around like @CaptK said.

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