Thoughts on this UK tax avoidance

[BritishSecret]

1) be a non-dom and have your foreign income not remitted in the UK. As long as it's a passive income and you file for remittance basis - you will pay 0 taxes on this money
2) transfer the ownership of assets to a trusted third party - that can be a professional trust, a corporation managed by real people in low/zero tax jurisdiction or even a trusted person/family member who lives in let's say Cayman and manages your funds. Again - as long as the management is done overseas and there is no remittance - you will be fine.
One potential workaround - gifts are not taxed in the UK.

 

[Marzio]

If it's passive income why do you feel the need to transfer the ownership of‍ the assets?

 

[Martin Everson]

Labour government will abolish⁠ non-dom scheme if they come to power next year I believe. They already tabled legislation that failed this year under Conservative government. It won't under Labour I feel.

On non-dom basis ok but with non-dom scheme︂ potentially gone next year you are still beneficial owner/beneficiary etc. UK has strong anti-avoidance laws︃ especially around trusts and corporation.

 

[BritishSecret]

Safety and privacy

Okay, let's assume the non-dom scheme isn't going to work, what do we do︀ instead then?

 

[Martin Everson]

You can look at your option‍ 2. However do not use Trusts.

 

[BritishSecret]

Why not? I'm guessing I should use LLCs instead?

 

[Martin Everson]

Because if you are the beneficiary of the‌ Trust the tax anti-avoidance legislation around trusts is extensive.

Why are you guessing this? What does this change?⁠ It is worse in fact because HMRC can deem offshore companies transparent for tax purposes⁤ whether the income of the company is distributed or not. They apportion the companies income⁣ to your control directly and you are then taxed at UK personal income tax rates.⁢ I have talked about this in other threads.

https://www.offshorecorptalk.com/threads/offshore-company-uk-non-dom-resident.39343/post-236237

P.S Best to go and get︀ tax advice now as your setting yourself up for failure. We are in 2023 not︁ 1993.

 

[BritishSecret]

Okay, Martin, where should I aim to get that advice from? And yes I'm aware‌ of the year… Thanks for the help so far.

 

[Martin Everson]

A tax advisor.

 

[BritishSecret]

Well yes obviously, but where specifically‌ should I be searching? Should I ask wealth management? Or someone who specialises in offshore‍ tax accounting? I should, I already hire someone in the countries where I wish to⁠ set up my trusts?

 

[Wellington]

TBF if labour gets in, i wouldn't be surprised⁣ to see Non-Residents charged tax.

It's a sad state of affairs what the conservatives have⁢ become.

 

[Martin Everson]

The internet.

Keep in mind all providers based in EU and UK are required to‍ disclosure all crossborder arrangements of its residents to authorities under DAC6:

https://www.offshorecorptalk.com/th...eporting-comes-into-effect-1-july-2020.29711/

If you have a wealth management relationship⁠ or meet the requirements then yes.

This would be a good choice.

Don't do anything without first seeking professional advice.

 

[Marzio]

LMAO i'm sure he never thought about‍ that!

 

[Martin Everson]

I take‌ nothing for granted these days 😕

 

[AndyAresa]

Hi Martin Everson, do you know is there a similar requirement for providers based in⁠ the US?

 

[Martin Everson]

I know nothing about US and whether they‍ have their own scheme unfortunately.

 

[BritishSecret]

I'm just‌ trying to learn as much as possible about tax structures. That's all martin.