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Vol 22 No 4 April/May 2017

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The Offshore Trustees' UK Tax Handbook

ISBN13: 9781843748915
Published: September 2011
Publisher: Euromoney Institutional Investor
Country of Publication: UK
Format: Paperback
Price: £199.00

This is a Print On Demand Title.
The publisher will print a copy to fulfill your order. Books can take between 1 to 3 weeks. Looseleaf titles between 1 to 2 weeks.

Maybe you are acting as offshore trustees with UK beneficiaries (or even worse, a UK-based settlor). Or you may be running a family office, investments or a bank account for UK based individuals.

This book guides you through the potential UK tax pitfalls you might not otherwise be aware of. It covers the records you need to keep, as well as explaining when you might have to complete UK tax returns and how to deal with correspondence from the UK revenue authorities, HMRC.

If nothing else, it will guide you as to when you need bespoke tax advice for the structure. The book is divided into four parts:

Part 1 covers the potential UK tax liabilities that may be faced by offshore trustees, including income tax and inheritance tax. This part also deals with when stamp duty and VAT may be payable. Detailed guidance is included to help offshore trustees check that they are non-resident for UK income tax and capital gains purposes, including the care that has to be taken to ensure there is no permanent establishment or dependent agent in the UK.

Part 2 deals with the potential UK tax liabilities for settlors and beneficiaries of offshore structures, since these will have an impact on how the funds are invested and on the types of accounting records needed. Chapters cover the UK's new remittance rules, including how offshore trusts and companies can inadvertently remit funds into the UK, as well as the extensive anti-avoidance provisions that can apply. These chapters explain how an offshore structure can be transparent for UK income tax and capital gains tax purposes, as well as looking at the shadow director and 'pre-owned assets tax' charges that can apply where beneficiaries occupy or use trust assets. Finally this part deals with inheritance tax issues that are often overlooked when setting up offshore structures.

Part 3 covers planning opportunities and tax traps. How should UK assets be held in the offshore structure? What is the best way to minimise exposure to UK income tax? How can funds be brought into the UK without a remittance charge applying? How should investments be held and what are the issues when UK 'benefits' are provided, such as rent-free accommodation? All of these questions are examined in detail, as well as a review of the brand-new 'disguised remuneration charge' that was announced in December 2010.

Part 4 deals with filing and compliance issues, including the new UK penalty system for inaccurate returns or failing to report a tax liability. Each chapter contains practical guidance as to which forms need to be filed and when. Finally, when can offshore trustees ignore correspondence from HMRC and how should they deal with HMRC 'fishing expeditions'?

The Annex of Tax Forms contains the forms offshore trustees are most likely to come across and can be used as a handy look-up section. A detailed index and schedules of legislative references and abbreviations should help readers to locate easily any topic they may be looking for. The preface is by Martyn Gowar of McDermott Will & Emery LLP."

The 5 key features:-

  • Detailed explanations of the UK tax rules that can apply to offshore structures
  • Guidance on the types of accounting records that will be needed for UK tax purposes
  • Chapters on planning and tax-traps, including how to hold UK assets and provide UK 'benefits'
  • Explanations of the tax liabilities offshore trustees may themselves have in the UK
  • Details of the UK's self-assessment tax system, including relevant forms and filing deadlines, penalties and interest