Offshore Tax: Non Resident and Offshore Tax Planning

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Non Resident and Offshore Tax Planning

by Lee Hadnum LLB ACA CTA

Non Resident and Offshore Tax Planning

Offshore Tax: Non Resident and Offshore Tax Planning Book

“A useful guide.” The Guardian

“I found your ‘Non-Resident & Offshore Tax’ guide excellent. After suffering years of confusing advice from my accountant in the UK, it is one of the clearest explanations I have come across.” Steven Connor, France

Contents of Non Resident and Offshore Tax Planning

1. Introduction

2. Residence, Ordinary Residence & Domicile
2.1 Why do Residence & Domicile Matter?
2.2 Becoming Non-Resident
2.3 Recent Court of Appeal Decisions
2.4 Days Spent in the UK
2.5 Statutory Residence Test
2.6 The Importance of ‘Ordinary Residence’
2.7 Ordinary Residence When Coming to the UK
2.8 Residence in a Nutshell
2.9 Why Domicile Is So Important
2.10 Watch Out for this Inheritance Tax Trap

3. How to Become Non-Resident
3.1 What You Stand to Gain
3.2 Convincing the Taxman You Are Non-Resident
3.3 How to Avoid Timing Traps
3.4 How the Taxman Decides Residence Status
3.5 Offshore Checklist

4. How to Avoid UK Income Tax
4.1 Introduction
4.2 Rental Income
4.3 Interest & Royalties
4.4 Dividends
4.5 Pension Income
4.6 Personal Allowance
4.7 Making Pension Contributions
4.8 Employment Income
4.9 UK National Insurance
4.10 Pension Planning
4.11 Out of the Frying Pan and into the Fire
4.12 UK Company Owners Moving Overseas 67

5. How to Avoid UK Capital Gains Tax
5.1 Introduction
5.2 Countries with Generous CGT Rules
5.3 Exceptions to the Five Year Rule
5.4 Traps to Avoid in the Year You Depart
5.5 Out of the Frying Pan and into the Fire
5.6 Postponing Disposals and Avoiding CGT
5.7 Avoiding CGT on Business Assets
5.8 Sale of a Former Home
5.9 Favourable Tax Jurisdictions
5.10 Using Enterprise Investment Schemes
5.11 Offshore Investments for UK Residents
5.12 Making the Most of Tax-free Capital Gains
5.13 Sell Property Before or After Returning to the UK?

6. How to Avoid Inheritance Tax
6.1 Introduction
6.2 How to Lose Your UK Domicile
6.3 How Domicile Status is Determined
6.4 How to Establish an Overseas Domicile
6.5 Retaining Your Domicile of Origin
6.6 Moving Abroad to Lose UK Deemed Domicile

7. The Advantages of Being Non-Domiciled
7.1 Non-UK Domiciliaries
7.2 The Remittance Tax Charge Explained
7.3 Planning for the £30,000 Tax Charge
7.4 Planning for the £50,000 Tax Charge
7.5 Capital & Income Accounts
7.6 Married Couples
7.7 Residence
7.8 Income-Free Investments
7.9 The New Remittance Tax Rules – FAQs
7.10 Gifting Assets Abroad to Avoid Remittance Rules
7.11 How the Remittance Basis Applies to Overseas Gains
7.12 Buying Property Overseas
7.13 Effect of UK Domicile Status on UK Inheritance Tax 124

8. Working Overseas: A Powerful Tax Shelter
8.1 Introduction
8.2 Tax-Deductible Expenses
8.3 Tax-Free Termination Payments
8.4 Protecting Your Property Investments from the Taxman

9. Making Use of Double Tax Relief
9.1 Introduction
9.2 Credit Relief
9.3 Expense Relief

10. Tax Benefits of Offshore Trusts
10.1 Introduction
10.2 How Offshore Trusts Are Taxed
10.3 Capital Gains Tax Consequences
10.4 Inheritance Tax Consequences
10.5 Dangers for UK Domiciliaries
10.6 When an Offshore Trust Can Save You Tax
10.7 UK Resident but Not UK Domiciled
10.8 Tax Treatment of Distributions from Offshore Trusts to UK Residents
10.9 UK Protectors and Offshore Trusts
10.10 Where Do You Set Up a Trust and How Much Does It Cost?
10.11 Using Trusts for Asset Protection
10.12 Keeping a Low Profile

11. Tax Benefits of Offshore Companies
11.1 Introduction
11.2 How the Taxman Spots Phony Offshore Management
11.3 Role of Managing Director
11.4 Recent Case on Company Residence
11.5 Apportionment of Capital Gains
11.6 Benefits in Kind
11.7 Using a Non-Resident Trust and Company
11.8 Using an Offshore Company and Trust: Non-UK Domiciliaries
11.9 How to Use Your Spouse’s Offshore Status
11.10 Personal Service Companies
11.11 Transfer Pricing Rules
11.12 Types of Offshore Entity
11.13 Overseas Trading
11.14 UK Controlled Foreign Company (CFC) Rules
11.15 UK Corporation Tax Planning After You’ve  Left the UK

12. Investing in UK Property: A Case Study
12.1 Direct Ownership
12.2 Using a Trust to Own the Property
12.3 Using an Offshore Company
12.4 Tax Planning for Non-Residents Owning UK  Property Investment Companies
12.5 Conclusion

13. Becoming a Tax Nomad

14. Double Tax Treaties
14.1 How Double Tax Treaties Work
14.2 What a Typical DTT Looks Like
14.3 The UK-Isle of Man Double Tax Treaty
14.4 Using Double Tax Treaties to Save Tax
14.5 Treaty Relief
14.6 Living or Buying Property in Spain
14.7 Capital Gains Tax in Other Countries
14.8 Countries without a UK Double Tax Treaty
14.9 How an Estate Tax Treaty Can Be Used

15. Buying Property Abroad
15.1 Introduction
15.2 UK Resident/Ordinarily Resident and Domiciled
15.3 Non-Resident/Ordinarily Resident and Non-UK Domiciled
15.4 UK Resident/Ordinarily Resident and Non-UK Domiciled
15.5 Use of an Offshore Company/Trust
15.6 Using Mixed Residence Partnerships to Avoid CGT
15.7 What About Overseas Tax Implications?
15.8 Double Tax Relief (DTR)
15.9 Summary

Appendix I: UK-Spain Double Tax Treaty  
Appendix II: UK Treatment of Overseas Entities 

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