Offshore business tax

DCART

I am a UK citizen and if I form an offshore business and I trade offshore with another business, which may or may not be an offshore business, then do I only pay the offshore tax rate.

And also do I pay the UK income tax only when I bring the profit of this offshore business onshore?

antrobus

Likely to be treated as a Controlled Foreign Company, see http://www.hmrc.gov.uk/manuals/intmanual/intm200000.htm

Or in plain English, they've already thought of that one.

pjclar02

The Controlled Foreign Company (CFC) rules only apply where an offshore companiy is owned and controlled by a UK company. If you do not have a UK company, you do not need to worry about the CFC rules.

You should however be mindful of the effective management and control rules which could make the non-resident company liable to UK corporation tax if you control it from the UK.

DCART

pjclar02 wrote: »

You should however be mindful of the effective management and control rules which could make the non-resident company liable to UK corporation tax if you control it from the UK.

How can I find out more about these management and control rules?

pjclar02

DCART wrote: »

How can I find out more about these management and control rules?

I would suggest if you are planning to go down this route, you speak to an accountant who understands international tax, but you can start your reading here:

http://www.hmrc.gov.uk/manuals/intmanual/intm120060.htm