Tax on income from an offshore company

Alex.123

Hi guys,

So I am a UK non-Dom resident and I have an offshore company which has an account in Switzerland. The company will be earning money in the UK. Will I be taxed on the profits that the company will earn in the UK or only if I decide to bring the money to the UK or something else?

Any help would be appreciated

Thanks

laticsforlife

TOAA rules will tax this in the UK yes.

These rules are fairly complicated, so you need an accountant who knows about TOAA, but broadly I'd say yes there will be UK tax exposure, and possibly you will have the RBC (Remittance Basis Charge) of up to £90,000, depending on whether you opt to be taxed on the Remittance basis or arising basis.

Not something that can be answered fully here for sure.

Alex.123

I see. Thanks for your response. One more question. The company will need to bring money to the uk to buy and sell goods, will I need to pay tax on that money? I mean, it’s not income, and this money is not for my personal use, so I’m thinking that I won’t have to pay anything... I do however understand that I will have to pay tax on any income earned by that company in the uk or if I decide to bring that money to the uk myself.

An example: This offshore company with an account in Switzerland decides to buy some items at an auction in the uk. In order to do that, it needs to bring money to the uk to buy the items. Will I have to pay anything on the money that is brought to the UK?

Thanks

uknick

The items you're buying, where are they going to go straight after the auction? Switzerland?

You seem to be setting up, or have set up, a pretty complicated, with regard to tax, company, what professional advice are you receiving?

Alex.123

So this company will buy the items at auctions and then these items will go to different countries, they won’t stay in the UK.

I’m asking this question here because it is taking my accountant quite a very long time, so maybe someone here knows how this works and hence, the answer to my question.

Thanks

Pennywise

Alex.123 wrote: »

So this company will buy the items at auctions and then these items will go to different countries, they won’t stay in the UK.

I’m asking this question here because it is taking my accountant quite a very long time, so maybe someone here knows how this works and hence, the answer to my question.

Thanks

Unless your accountant is a "specialist" in offshore/overseas tax, they're unlikely to be able to advise you. Your average general practice accountant won't be dealing with non-doms with foreign companies - it's a pretty specialist area.