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Where Taxpayers and Advisers Meet

UK Business Banking in Asia

Joined:Mon Dec 28, 2020 1:33 am
UK Business Banking in Asia

Postby s94anderson » Mon Dec 28, 2020 1:39 am

me and my brother are tattoo artists in the UK. We are both british although have lived in Dubai and Bahrain and have relatives there.

We are wondering if it is possible to have a registered UK business but bank in bahrain purely for tax purposes. I’m sure it would be very easy to setup in Bahrain but i’m sure the UK may have something to say about it with the business based on UK soil?

I do stocks on the side which doesn’t have a physical location which i bank with bank of cyprus again purely for tax purposes so pretty straight forward there.

Whats the best way to go about this if at all possible?

Joined:Fri May 16, 2014 3:47 pm

Re: UK Business Banking in Asia

Postby AGoodman » Mon Jan 11, 2021 3:04 pm

There's no rule against a UK business having a foreign bank account but yes, it could attract attention. You will also need a UK account for VAT etc.

You will want to be sure it actually brings a tax benefit as if you have a UK trade, the worldwide profits will likely be subject to UK tax.

The same applies to income and gains on your investments. Unless you elect to be taxed on the remittance basis, which is not something to be undertaken lightly (there are significant costs as well as benefits), you are likely subject to UK tax on your worldwide profits.

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