Description: A tax-exempt offshore company is a smart choice of vehicle for the acquisition of UK investment property, where the underlying owner is a UK non-resident. UK non-residents are exempt from UK capital gains tax (CGT), provided that a non-resident company (holding the UK property) is not trading or managed and controlled in the UK (which can often be facilitated for an offshore company by use of professional directors resident in the offshore jurisdiction where the company is registered). The use of a company as the purchasing entity also avoids the imposition of UK inheritance tax, irrespective of the death of the non-resident owner of the company. If owned directly by an individual, the full value of the property will be subject to UK inheritance tax on the individual owner’s death (irrespective of whether they are resident and domiciled inside or outside of the UK at the time of death), unless a spouse exemption is applicable.
Submitted: 01/12/10
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