Liability to UK tax is broadly determined by the application of the concepts of "domicile" and "residence".
UK law relating to domicile is complex and differs from the laws of most other countries. Domicile is distinct from the concepts of nationality or residence. In essence, you are domiciled in the country where you consider you belong and where your real and permanent home is. … more
Who Can Move to the UK?
EEA nationals and their family members have the right to reside in the UK; the situation may change following Brexit. Non-EEA nationals need to obtain a residence visa. There are two types of UK visa which are particularly popular with high net worth individuals and/or entrepreneurs:
The UK Investment Visa
This is formally known as the Tier 1 (Investor) visa. Under … more
What is a Family Investment Company?
A Family Investment Company (“FIC”) is a company in which the shareholders are family members, often from different generations. FIC’s enable families to pass UK assets out of their individual estates for inheritance tax purposes, whilst retaining control or passing control to professional directors to manage the company. FIC’s also provide asset protection. … more
The UK Budget, as announced on 29 October 2018, put in place certain measures that had previously been announced but not implemented. In addition, it was a more positive Budget than many had anticipated.
The key measures, a number of which will have an impact on individuals investing into the UK from overseas, are detailed below.
Commercial Real Estate
It was confirmed that … more
As detailed in a number of previous Information Notes, there are several different UK visa options available to non-EEA nationals, to come to the UK to live and work.
What is a ‘Representative of an Overseas Business Visa’?
The “Sole Rep Visa” as it is informally known, is a route designed for senior employees who are non-EEA nationals, enabling them to move to the UK and establish … more
UK Immigration and Brexit: Changes Galore (or not…)!
As 29 March 2019 looms near, we are not much clearer whether we will have a soft or hard Brexit, or even if there will be a deal. There might even be a possibility that Brexit could be cancelled.
In relation to non-EEA citizens, the UK immigration system will not generally be affected by Brexit, though changes in the near future are … more
Иммиграция и Брексит: Множество изменений (или нет ...)!
По мере приближения 29 марта 2019 года не стало намного понятнее, будем ли мы иметь мягкий или жесткий Брексит, или даже будет ли сделка. Есть даже вероятность того, что Брексит может быть отменен.
По отношению к гражданам стран, не входящих в ЕЭП, британская иммиграционная система, как правило, не будет затронута Брексит, хотя изменения в … more
IN550 - Visas Available To Non European Economic Area (EEA) Individuals Allowing Them To Work In The UK
There are a number of visas, enabling non-EU individuals to live and work in the UK, that are less well known than the Tier 1 (Entrepreneur) Visa and Tier 2 (General) Visa.
This article considers these options, which include: ‘Representative of an Overseas Business Visa’, ‘Tier 2 Sponsor Licence’, ‘Van der Elst Visa’ and ‘Short-Term Business Trips’. A number of these visas can … more
IN551 - UK Tax Considerations For Short Term Business Visitors To The UK And For Non-UK Resident Directors Of UK Companies
When individuals not resident in the UK are short term business visitors to the UK and/or are directors of UK companies, the individual’s UK tax position needs to be considered carefully. UK tax may be due, but there are a number of options that might reduce or negate the UK tax payable.
Short Term Business Visitors
Short-term business visitors are individuals who are not resident … more
IN549(R) - КЛЮЧЕВЫЕ ПЕРСОНАЛЬНЫЕ ПОДОХОДНЫЕ НАЛОГИ И ПОТЕНЦИАЛЬНЫЕ ПРЕИМУЩЕСТВА ДЛЯ НЕ ДОМИЦИЛИРОВАННЫХ РЕЗИДЕНТОВ СОЕДИНЕННОГО КОРОЛЕВСТВА
Ряд стран предлагают режимы «налогообложения на основе перечисления, чтобы заинтересовать богатых людей в переезде из других стран, таких как Россия. Эти люди известны как «не домицилированные резиденты». Проще говоря, не домицилированный резидент - это человек, который не живет в своей стране «гражданской принадлежности».
Режим перечисления в Соединённом Королевстве является особенно привлек … more
A number of countries offer ‘remittance basis of taxation’ regimes to attract wealthy individuals to re-locate from other countries, such as Russia. These individuals are known as ‘non-doms’. Very simply expressed a non-dom is an individual not living in his/her country of ‘origin’.
The UK remittance regime is a particularly attractive example and although the rules have changed … more
The past few years have seen dramatic changes to the taxation of UK residential property in respect of both UK and non-UK residents and detailed below is a summary of the current position (as of July 2018) and proposed changes.
It is important that existing structures (particularly those with foreign company ownership) are continually reviewed to ensure that the anticipated benefits of such … more
Tax on Rental Profit
Overseas investors who are not tax resident and do not carry on a trade in the UK are only liable to pay basic rate income tax (currently 20%) on rental profits during their period of ownership of a UK commercial investment property.
To achieve the favourable tax treatment outlined above, it is important to use an offshore company to acquire the UK property and that … more
IN537 - Moving to the UK and the Opportunities Provided by the UK Investment Visa and the UK Entrepreneur Visa
Why the UK?
The UK is a very popular destination for many individuals. The legal and education systems are of high quality and there is an excellent choice of property, both residential and commercial. It offers a rich culture, traditions and history and has a distinctive “British way of life”, which many people feel comfortable with
The UK has a number of international airports; Heathrow, … more
IN531 - The Importance of a Will - International Clients Need To Consider Their Position Across Jurisdictions
As families become increasingly international, with family members located in different countries, it is vital that appropriate wills are drafted and, subsequently, regularly reviewed and amended to reflect variations in circumstances. Often the jurisdictions where assets are located and/or where family members reside will be subject to change.
Writing A Will
There is no doubt that a will is an … more
The Annual Dixcart London Seminar was held in the City of London, at the Institute of Chartered Accountants in England and Wales (ICAEW). Further details regarding Brexit are emerging virtually continuously and these impending changes, as well as others within the UK, have provided an incentive for certain individuals to explore moving elsewhere.
The seminar started by attempting to evaluate the … more
The UK continues to offer significant tax advantages for individuals who are resident but not domiciled in the UK. This is due to the availability of the remittance basis of taxation. The availability of the remittance basis for longer term residents was restricted from April 2017 and additional details are available on request.
Non-UK domiciliaries who are resident in the UK (whether on a short- … more
IN522 - The Importance of Having a Will - An Interview with Paul Flude, Dixcart Family Office Adviser
As families become increasingly international, with family members located in different countries, it is vital that appropriate wills are drafted and, subsequently, regularly reviewed and amended to reflect any variation in circumstances. Often the jurisdictions where assets are located and/or where family members reside will be subject to change.
Paul Flude, Dixcart Family Office Adviser, has … more
IN490(P) - Reasons Why Companies and Individuals are Relocating to the UK and a Case Study for the UK Entrepreneur Visa (Portuguese version)
RAZÕES POR QUE TANTO EMPRESAS COMO INDIVÍDUOS SE ESTABELECEM NO REINO UNIDO E UM “CASE STUDY” SOBRE O VISTO DE EMPRENDEDOR NO REINO UNIDO
O Reino Unido é um destino atraente para indivíduos não residentes na Uniao Europeia que considerem alterar a sua residência. Eles não são atraídos para o Reino Unido apenas pela sua cultura variada e pelo "modo de vida" britânico, mas também … more
IN490(S) - Reasons Why Companies and Individuals are Relocating to the UK and a Case Study for the UK Entrepreneur Visa (Spanish version)
RAZONES POR LAS CUALES EMPRESAS E INDIVIDUOS SE TRASLADAN AL REINO UNIDO Y UN CASE STUDY PARA LA VISA DE EMPRENDEDOR EN EL REINO UNIDO
El Reino Unido es un destino atractivo para la reubicación de individuos de fuera de la UE. No solo se sienten atraídos por el Reino Unido debido a su rica cultura y al "way of life" británico, sino también por las ventajas fiscales que están disponibles … more
IN513 - Worldwide Disclosure, UK Tax Liabilities and a Three Month Extension in Certain Circumstances
The Worldwide Disclosure Facility (WDF) runs from 5 September 2016 to 30 September 2018. It is designed to enable taxpayers to disclose a UK tax liability which relates wholly or partly to an offshore matter.
All other offshore disclosure facilities have now closed and this is the final opportunity for UK taxpayers to come forward before the Common Reporting Standard (“CRS”) information … more
The UK could be perceived to have one of the most punitive inheritance tax regimes in the world. Individuals pay a 40% rate on the value of their taxable estate above a tax free allowance of £325,000. In the case of a married couple this tax free allowance can be passed onto a surviving spouse, which means that, following their death, the estate will enjoy a £650,000 tax free allowance. … more
Please see Dixcart Article IN539, which details some additional changes in relation to foreign ownership of UK commercial real estate.
There have been a number of changes to the taxation of UK property in recent years. The majority of these changes have been focused on residential property and have not affected commercial property.
Ongoing reductions in UK corporate tax, now 19% and moving to … more
Many have asked “What are the implications caused by Brexit for the UK’s status as a premier jurisdiction for holding companies?”
In this Article we examine a number of the features that make a good holding company jurisdiction and consider the UK holding company in this context both pre and post Brexit.
Virtually all dividends received by a UK company, be they from the … more
On 8 September 2017, the second Finance Bill of 2017 was published. This confirmed that the previously announced policies, including amendments to the taxation of non-doms due to start on 6 April 2017, would be effective from that date.
In addition, further draft legislation, which will form part of a third Finance Bill, was published on 13 September 2017. This introduces new rules in relation … more
UK tax resident, non-domiciled, individuals who are taxed on the remittance basis, are not required to pay UK income tax and/or UK capital gains tax on foreign income and gains, as long as these are not remitted to the UK.
It is, however, crucial to ensure that this tax benefit is properly claimed. Failure to do so means that any planning undertaken by the individual might be ineffective and he/ … more
IN490 - Reasons Why Companies and Individuals are Relocating to the UK and a Case Study for the UK Entrepreneur Visa
The UK is an attractive destination for individuals from outside the EU to consider moving to. They are not only attracted to the UK due to its rich culture and the British "way of life" but also because of the tax advantages that are available to both companies and individuals.
Tax Advantages Available to UK Companies
One of the lowest rates of corporation tax in the Western World. … more
IN293 - UK Controlled Foreign Companies Rules - And Certain Exemptions That Can Reduce Or Remove The Obligation To Pay UK Tax
The UK updated its foreign company (“CFC”) rules on 1 January 2013. A number of exemptions apply that can reduce or remove the obligation to pay UK tax.
A CFC is a non-UK resident company controlled by persons in the UK. Typically a CFC is a foreign subsidiary of a UK group, although corporate control is not required for a company to be a CFC.
The rules, which are essentially anti- … more
Dixcart Business Centres offer extensive serviced office capacity and are ideal for companies establishing themselves in a new location. Dixcart Business Centres are located in Guernsey, the Isle of Man, Madeira (Portugal), Malta and the UK.
Business Centres can offer a productive work environment and a cost effective option for organisations with international interests wishing to operate from … more
INSAA - Why Companies and Individuals are Relocating to the UK and a UK Entrepreneur Visa Case Study
During 2016 and also this year, an increasing number of Dixcart contacts are expressing interest in moving to the UK, either for themselves personally or for their clients. They are not only attracted to the UK due to its rich culture and the British "way of life," it is also because of the tax advantages available for both companies and individuals.
London was rated top city in the world in 201 … more
Individuals wishing to establish a company in the UK may, for a variety of reasons, consider the use of a Business Centre offering serviced office capacity, which will provide substance. Business Centres can offer a productive work environment and a cost effective option for organisations with international interests wishing to operate from a particular location.
A company establishing itself in … more
IN454 - Cross-Border Mergers in the EEA: Potential Advantages and the Need to Act Soon if a UK Company is Involved
With increasing political uncertainty across the world, particularly at the current time in the EU, a cross-border merger can be used as a way to secure business from one country in the European Economic Area (EEA) to another country in the EEA.
The Cross-border Merger Option Available to EEA Countries
For companies resident in EEA states, including the UK, the option of a ‘true’ merger … more
IN446 - United Kingdom and United Arab Emirates Double Taxation Agreement - Potential Action to Consider
On 12 April 2016 the United Kingdom (UK) and the United Arab Emirates (UAE) signed a Double Tax Agreement (DTA). This is the first DTA to be signed between these two countries. The agreement is yet to come into force and requires ratification by both countries.
The DTA contains provisions regarding the location of corporate residence which may have important implications for a number of … more
IN436 - Restarting the Clock for Non-UK Domiciles: Why Cyprus, Malta and Portugal are Attractive Jurisdictions to Consider for Relocation
The UK offers an attractive tax regime for up to 15 years for individuals who are resident in the UK but do not have a UK domicile.
Individuals who are UK resident, but not UK domiciled, do not have to pay UK tax on their foreign income and gains, as long as these sums remain outside of the UK.
Individuals may choose to structure their tax affairs so that they cease to be UK tax resident for a … more
IN430 - What are the Major Factors Non-UK Residents Should Consider When Investing in UK Commercial Property?
Whilst there have been several recent taxation changes relating to UK based residential property (explained in Dixcart Article IN396) the taxation regime for UK based commercial property remains largely untouched.
This, combined with the reducing UK corporation tax rate to 17% by 2020, mean that the UK commercial property market continues to be an interesting investment for current … more
IN425 - The Potential Tax Efficiencies Offered by UK Business Investment Relief for Non-UK Domiciled Individuals
What is UK Business Tax Relief and What are the Tax Advantages?
UK Business Investment Relief (BIR) was introduced in 2012.
The key advantages provided through BIR are:
A non-UK domiciled individual who is taxed on the remittance basis can use ‘idle’ overseas funds in the UK, as long as the remittance is channelled into a qualifying investment with a qualifying underlying UK commercial … more
Why Use A UK Company?
The UK Government has introduced many changes to make the UK tax system more competitive. This has led to the return of UK holding companies, the re-shoring of manufacturing and increased UK based research and development (R&D).
United Kingdom (UK) entities have a respectable international image and can be used tax efficiently for cross border trading and as international … more
Dixcart can provide advice to the trustees of trusts established outside of the UK, who are not familiar with UK tax law. Advice may be needed to ensure that such trustees are making tax efficient distributions to any UK resident beneficiaries. We can also advise trustees on how to keep accounting records to ensure that they are able to provide the information that UK resident … more
The World Bank has rated the UK as the eighth easiest place to do business (to June 2014) out of 189 countries surveyed. This survey takes into account a number of factors, ranging from taxation to employment law, to the enforceability of contracts.
Location of a European Holding Company in the UK
The UK has also become an attractive place to locate a European Holding Company (see … more
Ideal Characteristics for the Location of an International Holding Company
The location of a holding company is an important consideration in any international structure where the objective is to minimise the tax charged on the income flow. Ideally the company should be in a jurisdiction which:
Has a good double tax treaty network, thereby minimising withholding taxes on dividends received. … more
What the UK Offers as a Tax Efficient Jurisdiction
One of the UK Government’s key ambitions has been to create the most competitive tax system in the G20. It has developed strategies to support, rather than hinder, growth and to boost investment.
Through the implementation of these strategies the Government is aiming to make the UK the most attractive location for corporate headquarters in … more
IN396 - What are the Key Changes to the Taxation of UK Residential Property for Non-UK Tax Residents?
The approach to the taxation of UK residential property has changed significantly over recent years and further changes have been announced. These changes mean that restructuring should be considered to avoid unnecessary taxation, charges and costs.
This Information Note summarises the main UK taxes that need to be considered when structuring the ownership of UK residential property by non-UK … more
From 6 April 2016 UK companies and limited liability partnerships must keep a register of Persons with Significant Control (PSCs).
From 30 June 2016 PSC details need to be included on a company’s annual confirmation statement (which replaces the current annual return). This is a public document.
Who is a PSC?
You are a PSC if you meet one of the following conditions:
Hold directly or … more
Major reforms regarding how UK tax resident, non-UK domiciliaries (“non-doms”) are taxed were introduced in April 2017.
The changes impact on individuals who have been tax resident in the UK for 15 years or more.
The Attractive Remittance Basis of Taxation will Continue for Many Non-UK Domiciliaries
The availability of the remittance basis of taxation for non-UK domiciled individuals who have … more
CONSIDERATION OF THE ROUTE CHOSEN TO ENTER THE UK
When first coming to live in the UK it is important to ensure that your immigration status will allow you to do what you wish to do; will it allow your family members and any staff to come to the UK to study or work? Will it allow you and your family members to remain in the UK in the long-term if you wish to do so? … more
It is important that UK inheritance tax is taken into careful consideration, in particular by individuals who have assets in the UK. This Article examines how, with careful planning, some UK inheritance tax obligations can be mitigated for certain individuals.
What is UK Inheritance Tax?
UK inheritance tax (IHT) is a tax on money or assets held at death, and on some gifts made during a lifetime … more
It is possible for a company to be incorporated in one jurisdiction and to be resident in another. In certain circumstances this can generate tax efficiencies.
It is very important to always ensure that the company is properly managed and controlled from the jurisdiction in which it is resident.
The jurisdictions of Cyprus, Malta and the UK present a number of opportunities, as detailed below. … more
The OECD is undertaking ongoing discussions regarding Base Erosion and Profit Shifting (BEPS).
The UK has acted swiftly and unilaterally as one of the first jurisdictions to introduce a Diverted Profits Tax and it is anticipated that many other jurisdictions will introduce similar provisions.
What is the UK Diverted Profits Tax?
On 1 April 2015 the UK introduced its new Diverted Profits Tax ( … more
Starting a new business is very time consuming, especially if the UK is new to you, with different rules and regulations. Dixcart Legal Limited (Dixcart Legal) can assist with your legal requirements in a seamless way (as well as providing access to tax, IT, and payroll teams if required) so that you can focus your time on building your business.
Set out in this brief note are issues to … more