The answer is probably more than you think both as an individual and as a business person.
With correct advice an offshore company* and/or a tax planning company* can afford many significant and legal tax savings, providing you and your company with a competitive advantage, afford confidentiality/security and perhaps even save on future inheritance and capital gains taxes. However, as to the exact benefits available this will depend greatly on factors such as:
- Nationality and the tax regime of your home country/place of residence
- The period you have been resident (if from abroad) in the UK (see 2008/2012 Budgets)
- Whether the aim is to mitigate personal and/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
Without doubt, offshore/tax planning structures should not be set-up without proper advice from lawyers, chartered accountants, licensed tax planners or other such professionals as an inappropriate structure could lead to significant and avoidable complications – Complications that a firm such as the SCF Group could help you avoid. Notwithstanding the obvious requirement for proper advice there is little doubt that the majority of individuals and/or companies with an international aspect to their affairs could greatly reduce their tax obligations - After all, multi-national companies have been taking advantage of international tax treaties and offshore/low tax companies for decades often resulting in them paying little more than 5 -10% on their gross profits – Benefits that we may be able to bring to your personal and business affairs!
* An offshore company is generally considered to be one located in a tax free zone normally not benefiting from tax treaty protection
* A tax planning or low tax company is one where there is generally tax treaty protection, corporation tax (albeit low) plus a requirement to maintain and submit accounts