The Answer is Probably More than you Think!
With correct advice a tax planning structure can often not merely mitigate corporate and individual taxes but also afford future asset protection benefits for you and your family. Indeed, depending on personal circumstances a structure using a trust or private interest foundation (PIF) can often protect wealth for the next generation and also provide asset protection against 3rd party litigation and even act as a de facto and effective prenuptial agreement.
In the case of the United Kingdom the key questions that would need to be asked before setting up a tax planning structure would be:
- Your nationality and the tax regime of your home country/place of residence if not the UK
- If applicable, how long you have lived in the UK and whether you would be deemed ordinarily resident and/or domiciled
- Whether the aim is to mitigate personal or business taxation
- Whether your business or personal circumstances have an international aspect or can be re-arranged to have such characteristics
- Whether you and or your business can avail of the many tax treaty provisions and/or low tax jurisdictions available throughout the world
- If it is possible to re-structure affairs in such a way that it can be shown that there was a genuine business reason for a tax planning scheme and that the decision was not simply taken to mitigate taxes
- Whether the object of the tax planning structure concerns intellectual property, real property, international marketing, consulting or manufacturing
- Whether you are motivated by asset protection as well as tax mitigation
Depending on your answers and personal requirements it is often the case that tax planning structures, trusts and private interest foundations can provide much more than immediate tax mitigation advantages. However, as is always the case with such potentially complicated structures it is always essential that proper tax planning advice is sought from legally and/or accountancy qualified tax planning experts such as Mr Spencer-Higgins and his team of lawyers, certified accountants and tax planners including Alexis Demetriou B.Sc(Hons), Acc, ACCA, Mariusz Zobek BA(Hons), MA, Charis Vryonidou LL.B, LL.M (Commercial Law) and Steven Shen BA(Hons), MBA