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  • FIRST POST
    • Alex.123
    • By Alex.123 4th Dec 19, 1:44 AM
    • 3Posts
    • 0Thanks
    Alex.123
    Tax on income from an offshore company
    • #1
    • 4th Dec 19, 1:44 AM
    Tax on income from an offshore company 4th Dec 19 at 1:44 AM
    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
Page 1
    • laticsforlife
    • By laticsforlife 4th Dec 19, 8:26 AM
    • 1,227 Posts
    • 1,479 Thanks
    laticsforlife
    • #2
    • 4th Dec 19, 8:26 AM
    • #2
    • 4th Dec 19, 8:26 AM
    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.
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    • Alex.123
    • By Alex.123 5th Dec 19, 2:42 AM
    • 3 Posts
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    Alex.123
    • #3
    • 5th Dec 19, 2:42 AM
    • #3
    • 5th Dec 19, 2:42 AM
    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, itís not income, and this money is not for my personal use, so Iím thinking that I wonít 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
    • By uknick 5th Dec 19, 3:09 PM
    • 1,045 Posts
    • 477 Thanks
    uknick
    • #4
    • 5th Dec 19, 3:09 PM
    • #4
    • 5th Dec 19, 3:09 PM
    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
    • By Alex.123 8th Dec 19, 11:43 AM
    • 3 Posts
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    Alex.123
    • #5
    • 8th Dec 19, 11:43 AM
    • #5
    • 8th Dec 19, 11:43 AM
    So this company will buy the items at auctions and then these items will go to different countries, they wonít stay in the UK.

    Iím 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
    • By Pennywise 8th Dec 19, 12:25 PM
    • 12,362 Posts
    • 24,661 Thanks
    Pennywise
    • #6
    • 8th Dec 19, 12:25 PM
    • #6
    • 8th Dec 19, 12:25 PM
    So this company will buy the items at auctions and then these items will go to different countries, they wonít stay in the UK.

    Iím 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
    Originally posted by Alex.123
    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.
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