WHY A TRUST/ what is it a offshore account

[alain]

Dear All

I am a french man and live and work in UK since 6 years. i am a MD and my salry is around 100kf, a lot a people talk me it will be better for me to open a trust for pay less tax in this country.

i would like to if it's true and what is it a trust.

can i hopen also a offshore account

[tom 7000]

Stop worrying about trusts - it will not work or save you any tax to try to pay your ssalary into this.

Your best bet is if you have any savings to make sure they are outside the uk, then you will not have to pay 40% tax on any interest/ dividends you receive. As the income is only taxed if you bring it to the uk.

So for example you need a swiss bank account. Let me know if you want one , I have a contact in Geneva and I can pass you his email

Tom@ttca.co.uk

[tax me less!]

Switzerland would be an unusual choice of jurisdiction given that "retention tax" would be taken and it does not interpret the EU Savings Tax Directive as generously as the Channel Islands/Isle of Man for non-UK domiciliaries.

What you correctly need are properly structured non-UK income and capital accounts for non-UK investments.

A trust may be useful but could give rise to difficulties when you return to France. It may be helpful to sort out distribution of your assets on your death.

[alain]

if i understand weel, the best thing i need to do, it's to open a account in switzerland.

i will put all my saving in this account and i don't need to declare this divident to the uk tax man.

but i would like to know if it's good this way when i will be back in france.

can i do tranfert from uk account to switzereland.

regads

[tax me less!]

1. If you move all your money to Switzerland then the interest will have tax withheld.
2. The tax withheld can all be reclaimed on your UK tax return.
3. You will have to report the Swiss interest to the UK each year as part of your claim to be non-UK domiciled.