Directors wanting to set up an offshore company that benefits from 0% tax, yet remain UK residents

UK Discussion in 'General Accountancy Discussion' started by Jcwangel, Jul 20, 2018.

  1. Jcwangel


    Jul 8, 2018
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    Is it possible for the above to take place and benefit from the 0% tax rate that some tax havens provide?

    Example scenario: Two UK directors of a successful company want to set up an offshore structure in UAE (or another 0% tax country), transfer all existing profits then close down the UK company and continue trading under the new structure in order to benefit from the nil tax rate. However both directors want to remain in the UK as residents.

    I've read somewhere that the above is possible if all management functions of the new company are being undertaken/controlled in the country where the structure is set up and all directors meetings are held there.

    Common sense is telling me this surely cant be possible for two UK residents to simply go abroad a few times a year, have a directors meeting in a hotel room then trade tax free back home for the rest of their working lives!?

    Has anyone seen a successful case like this, as i would have thought the only way this could work would be if the directors became residents of the country which the new structure is to be set up. Or they became residents of another country with a 0% tax rate that is separate from where the new structure has been created ?

    Many thanks.
    Jcwangel, Jul 20, 2018
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  2. Jcwangel


    Jul 12, 2018
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    Am interested in this.. Mauritius is a tax haven..Am standing by for a response
    Kanayo, Jul 25, 2018
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  3. Jcwangel


    Oct 21, 2016
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    You can look into Hong kong which works on territorial concept of taxation. Income earned in hk, taxed in hk or completely exempt and these are termed as Offshore Profit. However I would strongly recommend to study Revenue department website on the matter. Just google IRD hong kong and search offshore profit.

    Or have I misunderstood you? you want to be "0" taxed in the UK or the other territory you wish to move to??
    because to be HK "Offshore Company" you cant have central management making decision in land, nor do you have any permanent establishment.

    Sorry if I misled you but feel free to ask more!
    wave, Aug 10, 2018
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