Tax on sale of shares by BVI offshore company

[bananashark]

Hi,

The scenario is this:

A company registered in BVI buys shares of a company listed in the AIM stock exchange in London for 2 pounds.

After say 18 months this company sells the shares at 5 pounds.

The company makes, say, 300,000 pounds profit. Does this company pay any taxes for this transaction either in UK or BVI?

Many thanks

[maths]

Doesn't seem to make sense.

[bananashark]

Hi, why is this?

Can't a company registered in BVI buy shares in AIM ?

Sorry for being a newbie with this.

Many thanks,
Manuel

[maths]

How is the £5 sale price worked out?

[bananashark]

this is just a hypothetical scenario, to clairfy if a BVI company pays tax when buying shares in AIM.

[bd6759]

Depends.
If a BVI resident decides to form a BVI company to buy the shares, there are no UK tax implications.
If a UK resident decides to form a BVI company to buy the shares, there will be UK tax implications.

[bananashark]

ok I believe this makes sense in a way, thanks for clarifying.