This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

offshore shares in uk ltd

joszzz
Posts:9
Joined:Wed Aug 06, 2008 3:03 pm

Postby joszzz » Sun Jun 15, 2003 8:56 am

I would like to invest in UK property and can set up an offshore entity for that matter as I am non-uk domiciled. The management off the company will be in hands of non-uk residents/domiciles.

My question is as follows;

1) If I setup an offshore company and invest in uk property, the offshore entity is subject to a 22% withholding tax. Would I be able to claim the relevant deductions, such as interest finance, wear and tear, on the same rate as uk resident companies to that?

2) As follows, I was thinking that if the offshore entity could charge ONLY the interest to that 22% witholding tax, would it be good to setup a uk ltd, which my offshore company owns the shares. Which means that in the case of my offshore ltd selling the uk ltd branch/office, it will only sell the shares in the uk.

Would this give rise to a CGT when an offshore entity disposes of shares in a UK ltd?

Regards,

joszzz
Posts:9
Joined:Wed Aug 06, 2008 3:03 pm

Postby joszzz » Sun Jun 15, 2003 9:30 am

From my research I think that property investment solely in the UK through an offshore vehicle is not as profitable/glamourous as it seems. A UK ltd who invests/trades in property does not really have to pay corporation tax as you can make legal losses from property (e.g. mortgage a house, not renting out).

If you decide after a few years to leave uk for 5 years, and then sell your company you wont have to pay any CGT.

Am I seeing this wrong? Or are there any other usefull comments to be made by the professionals on this site?

This forum is the best place for discussions I have ever seen...Keep up the good work!

regards,

joszzz
Posts:9
Joined:Wed Aug 06, 2008 3:03 pm

Postby joszzz » Sun Jun 15, 2003 9:33 am

Sorry, forgot to ask.

I am looking for a (international) tax consultant/accountant who can help me structuring my affairs in a good legal way, offshore/onshore. Initial capital injection will be 500K.

Please contact me at joszzz@yahoo.com.


Return to “International Tax”

cron