Non Resident and Offshore Tax Planning

Contents

Chapter 1. Introduction

Chapter 2. Residence, Ordinary Residence & Domicile

• 2.1 Why do Residence & Domicile Matter?
• 2.2 Becoming Non-Resident
• 2.3 The Importance of 'Ordinary Residence'
• 2.4 Residence in a Nutshell
• 2.5 Why 'Domicile' is So Important
• 2.6 Watch Out for this Inheritance Tax Trap

Chapter 3. How to Become Non-Resident

• 3.1 What You Stand to Gain
• 3.2 Convincing the Taxman You Are Non-Resident
• 3.3 How to Avoid Timing Traps
• 3.4 How the Taxman Decides Residence Status

Chapter 4. How to Avoid UK Income Tax

• 4.1 Introduction
• 4.2 Rental Income
• 4.3 Interest & Royalties
• 4.4 Dividends
• 4.5 Pension Income
• 4.6 Employment Income
• 4.7 UK National Insurance
• 4.8 Pension Planning
• 4.9 Out of the Frying Pan and into the Fire

Chapter 5. How to Avoid UK Capital Gains Tax

• 5.1 Introduction
• 5.2 Countries with Generous CGT Rules
• 5.3 Exceptions to the Five Year Rule
• 5.4 Traps to Avoid in the Year you Depart
• 5.5 Out of the Frying Pan and into the Fire
• 5.6 Postponing Disposals and Avoiding CGT
• 5.7 Avoiding CGT on Business Assets
• 5.8 Sale of a Former Home
• 5.9 Favourable Tax Jurisdictions
• 5.10 Using Enterprise Investment Schemes
• 5.11 Offshore Investments for UK Residents

Chapter 6. How to Avoid Inheritance Tax

• 6.1 Introduction
• 6.2 How to Lose Your UK Domicile
• 6.3 How to Establish an Overseas Domicile
• 6.4 Retaining Your Domicile of Origin

Chapter 7. The Advantages of Being Non-Domiciled

• 7.1 Non-UK Domiciliaries
• 7.2 Income Tax Planning
• 7.3 Using Split Contracts to Reduce Income Tax
• 7.4 Capital Gains Tax Planning
• 7.5 Making the Most of the Remittance Rules
• 7.6 Paying Less Tax on Investment Income
• 7.7 Incorporating Your Business to Avoid Capital Gains Tax
• 7.8 Buying Property Overseas

Chapter 8. Working Overseas: A Powerful Tax Shelter

• 8.1 Introduction
• 8.2 Tax-Deductible Expenses
• 8.3 Tax-Free Termination Payments
• 8.4 Protecting Your Property Investments from the Taxman

Chapter 9. Making Use of Double Tax Relief

• 9.1 Introduction
• 9.2 Credit Relief
• 9.3 Expense Relief
• 9.4 Underlying Tax

Chapter 10. Tax Benefits of Offshore Trusts

• 10.1 Introduction
• 10.2 How Offshore Trusts Are Taxed
• 10.3 Capital Gains Tax Consequences
• 10.4 Inheritance Tax Consequences
• 10.5 Dangers for UK Domiciliaries
• 10.6 When an Offshore Trust Can Save You Tax
• 10.7 UK Resident but NOT UK Domiciled
• 10.8 Where Do You Set Up a Trust & How Much Does it Cost?
• 10.9 Using Trusts for Asset Protection
• 10.10 Keeping a Low Profile

Chapter 11. Tax Benefits of Offshore Companies

• 11.1 Introduction
• 11.2 How the Taxman Spots Phony Offshore Management
• 11.3 Apportionment of Capital Gains
• 11.4 Benefits in Kind
• 11.5 Using a Non-resident Trust and Company
• 11.6 Using an Offshore Company & Trust: Non-UK Domiciliaries
• 11.7 Personal Service Companies
• 11.8 Transfer Pricing Rules
• 11.9 Types of Offshore Entity
• 11.10 Overseas Trading
• 11.11 UK Controlled Foreign Company (CFC) Rules

Chapter 12. Investing in UK Property: A Case Study

• 12.1 Direct Ownership
• 12.2 Using a Trust to Own the Property
• 12.3 Using an Offshore Company
• 12.4 Conclusion

Chapter 13. Becoming a Tax Nomad

Chapter 14. Double Tax Treaties

• 14.1 How Double Tax Treaties Work
• 14.2 What a Typical DTT Looks Like
• 14.3 The UK-Isle of Man Double Tax Treaty
• 14.4 Using Double Tax Treaties to Save Tax
• 14.5 Treaty Relief
• 14.6 Considering a Move to Spain

Chapter 15. Buying Property Abroad

• 15.1 Introduction
• 15.2 UK Resident/Ordinarily Resident and Domiciled
• 15.3 Non-Resident/Ordinarily Resident and Non-UK Domiciled
• 15.4 UK Resident/Ordinarily Resident and Non-UK Domiciled
• 15.5 Use of an Offshore Company/Trust
• 15.6 Using Mixed Residence Partnerships to Avoid CGT
• 15.7 What About Overseas Tax Implications?
• 15.8 Double Tax Relief (DTR)
• 15.9 Summary

Appendix: UK-Spain Double Tax Treaty