Offshore Tax: Non Resident and Offshore Tax Planning

Non Resident and Offshore Tax Planning by Lee Hadnum LLB ACA CTA

PUBLICATION DATE: April 2011
PAGES: 246
STATUS: IN STOCK

Overview of Non Resident and Offshore Tax Planning

This is the ultimate type of tax planning. By becoming non-resident or moving assets offshore it is possible to pay zero taxes. There are also many pitfalls to negotiate, however.

This bestselling tax planning guide tells you exactly what you can and cannot do. This edition is totally up to date.

Non-Resident & Offshore Tax Planning is a must read for:

• Those wishing to become non-resident to avoid UK income tax and capital gains tax.
• Foreign nationals (non-domiciles) who want to use their special tax status.
• Anyone interested in tax planning with offshore trusts and companies.
• Those residing or working overseas.
 

What information is contained in Non Resident and Offshore Tax Planning?

Non-Resident & Offshore Tax Planning is packed with clear examples and unique tax planning ideas. Subjects covered include:

• The very latest changes from the April 2011 Budget.
• How to become non-resident and reduce your tax bill.
• The impact of the proposed new statutory residence test from 2012.
• How to avoid UK income tax on your salary, interest, dividends, rental income and pensions.
• How business owners can reduce their tax by becoming non-resident.
• How to totally avoid paying capital gains tax in the UK and abroad.
• Important traps to avoid if you want to escape UK capital gains tax.
• How to transfer your pension tax free to an overseas scheme (QROPS).
• The latest court cases on non-residence and what you can learn from them … including the Gaines-Cooper, Grace and Andreas Tuczka decisions.
• How to make the necessary ‘distinct break’ with the UK to avoid UK taxes.
• The new tax rules for non-domiciled individuals (non-doms)… and how you can use them to keep money offshore and tax free.
• Planned changes to the non-dom tax rules from 2012.
• How to lose your UK domicile and avoid inheritance tax.
• Detailed advice for overseas property investors.
• How to receive tax-free lump sums when you work abroad.
• Protecting your property investments from the UK taxman when you live or work abroad.
• How to make the most of Double Tax Relief.
• How to gain tax benefits from your husband or wife’s status.
• How the taxman keeps track of UK visits using new technology.
• How to become a Tax Nomad and avoid tax wherever you go.
• Tax benefits and dangers of offshore trusts.
• How to distribute money tax efficiently from an offshore trust.
• The pros and cons of using offshore companies.
• How to make sure your company is non-resident and not taxed in the UK.
• The benefits of using an international business company – IBC.
• Other useful offshore structures including the limited liability company (LLC), protected cell company, bearer share company, and foundations.
• How to take money out of your company in the most tax-efficient manner after you have left the UK.
• How double tax treaties can be used to save tax.

Examples are used throughout to explain important points.

About the Author of Non Resident and Offshore Tax Planning

The Author of Non Resident and Offshore Tax Planning is Lee Hadnum LLB ACA CTA. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA). Having worked in Ernst & Young’s tax department for several years Lee now has his own tax consultancy. He is author of a number of our tax guides and provides personalised advice through our popular Question & Answer Service.

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

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 UK Tax on Foreign Currency Exchange
5.14 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 New Remittance Tax Charge Explained
7.3 Tax Planning for the £30,000 Tax Charge
7.4 The New Remittance Rules – FAQs
7.5 Gifting Assets Abroad to Avoid Remittance Rules
7.6 How the Remittance Basis Applies to Overseas Gains
7.7 Buying Property Overseas
7.8 Effect of UK Domicile Status on UK Inheritance Tax
7.9 Future Non-Dom Tax Changes

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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