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Where Taxpayers and Advisers Meet

Uk Ltd co, going non-resident, dividend question

johnuk
Posts:8
Joined:Tue Dec 20, 2016 5:19 pm
Uk Ltd co, going non-resident, dividend question

Postby johnuk » Tue Dec 20, 2016 6:01 pm

I am currently Uk resident & domiciled and own 100% a UK ltd co which operates a business in this country. My income has been dividends from the co which have been relatively small in order to avoid the higher rates of tax. The business has a small number of employees that have been with me for 20 years and runs itself without me being requiring me to attend too often.
I have recently started to explore the option of going non-resident to reduce my tax bill and enjoy a better climate. Malta has been suggested but I am open minded.
I am divorced, own a residential property here which I can sell and my 2 children are adults now.
I have many questions but, the main ones are, how easy is it to be accepted as non resident and can dividends be paid free of UK tax ?
J

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Uk Ltd co, going non-resident, dividend question

Postby GlobalTaxAdviser » Tue Dec 20, 2016 7:36 pm

You can easily become non resident and dividends/salary can be paid free of UK Tax but if you are managing the company from Malta then possibly it could come into the realms of Maltese Corporate Taxation though can be easily circumvented. Any dividends or salary paid will be taxed in the country where you are resident

The Tax savings in Malta maybe marginal and there are other countries and tax havens that could save you a great deal of tax if managed properly.

johnuk
Posts:8
Joined:Tue Dec 20, 2016 5:19 pm

Re: Uk Ltd co, going non-resident, dividend question

Postby johnuk » Wed Dec 21, 2016 11:46 am

Thanks for your answer.
Why do you say the tax savings in Malta are marginal ? I understood Malta doesn't tax worldwide income to a non dom resident, and would only tax these on a remittance basis. So providing I don't bring the dividends into Malta surely they wouldn't be taxed. Have I misunderstood ?

johnuk
Posts:8
Joined:Tue Dec 20, 2016 5:19 pm

Re: Uk Ltd co, going non-resident, dividend question

Postby johnuk » Wed Dec 21, 2016 12:51 pm

Having looked into this further, it has been suggested to me that because of a double tax treaty with Malta, tax would have to be paid somewhere. Is that the fly in the ointment for Malta ?
Where else in the world would you suggest that I could effectively avoid tax on uk dividends ?


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