Effective use of On-shore and Off-shore companies

GETTING THE RIGHT ADVICE

No guesswork is needed to predict that income taxes are unlikely to go down and hence getting the right advice is now more important than ever for tax payers in the Osborne era. Property investors are already having to cope with a tough economic climate, tight lending conditions and uncertainty over interest rates.

THE ISSUE

We recently advised a very successful Non-UK resident property developer who was intending to buy and re-develop a site in London. The property developer had related group companies in the UK but wishes to minimise their UK tax liabilities.

THE SOLUTION

We recommended an offshore tax structure based in a 0% tax jurisdiction. The particular jurisdiction chosen was the Isle of Man. Development activities would be wholly administered from the Isle of Man and independent third party contractors would undertake the construction activities in the UK. The UK related group companies would limit their activities, so that they performed mainly administrative activities such as data gathering. In this particular case, a large proportion of the development profits escaped UK taxation, though some profits of course, had to be recognised in the UK.

HOW WE WORK WITH YOU

We will listen to your needs (both personal and commercial) and recommend a strategy that that takes into account your key objectives. We do this by providing you with a dedicated team that has the relevant experience and who will ensure that your key objectives are fulfilled.

ABOUT KINGSTON SMITH'S PROPERTY TEAM

Kingston Smith is a top 20 firm of Chartered Accountants. Our property team have considerable experience in the property sector and work with clients in development, construction, investment and management. We help these clients run their businesses more successfully by providing practical advice such as planning ownership structures to minimise their tax exposure, accounting services ranging from bookkeeping, management accounts to the preparation and audit of year end financial statements to improve financial efficiency and helping source alternative methods of funding.

To find out more about Kingston Smith's bespoke services to the sector click here

CONTACT US

Kingston Smith Property Team

Martin Muirhead +44 (0) 20 7566 3705
Heather Powell +44 (0) 20 7566 3811
David Benton +44 (0) 1708 759 701
David Montgomery +44 (0) 1737 781 545
Jonathan Seymour +44 (0) 20 8848 5531
Nigel Birch +44 (0) 1727 896 006

Financial advice is provided by Kingston Smith Financial Advisers Ltd, an appointed representative of Argentis Financial Management Ltd which is authorised and regulated by the Financial Services Authority (FSA). The FSA does not regulate some forms of buy to lets, commercial mortgages, tax advice, wills, trusts or certain offshore investments.