Non-Dom Investing in Dalaware Company

by **MDINVESTOR** on Mon Aug 22, 2011 1:24 pm

Hi,

I am a non-dom living in the UK. I am going to invest in a start up company which trades internationally but is registered in Dalaware in the US. I am investing $50,000. I expect to sell in about 3 years time.

The $50,000 will come from the UK but no income will be taken from this investment until it is sold. Any proceeds from the sale will not be repatriated to the UK.

Want would be the best way to structure this investment? Would there be an advantage to structure this investment as a company? If so, should this be a US or other registered company?

Thanks and regards
MDINVESTOR

by **maths** on Mon Aug 22, 2011 4:08 pm

I assume you have not resided in the UK for 7 tax years and thus the £30,000 is inapplicable.

Some USA entities are treated as transparent and others opaque for UK tax purposes.

As a broad brush, better to invest directly and not via any intermediate company (whether UK or offshore).

by **MDINVESTOR** on Mon Aug 22, 2011 4:30 pm

Hi Maths

Thank you for your reply. I am resident at present. If I am resident at the time of the asset sale, i would plan to pay the £30,000 for that year, assuming the profit justifies. In effect, i will take the profit, leave the proceeds off-shore and pay the non-dom tax change for that year.

Does this seem reasonable?

regards
MDINVESTOR