Offshore Structuring

Offshore structuring has come in for a lot of attention recently but many commentators fall into the trap of equating all offshore investment with tax avoidance by the wealthy.  In reality, offshore investment has a much wider and often less tax-driven purpose.

For example, offshore trusts and foundations can be used for asset protection for the creator of the trust as well as the beneficiaries. They can be used to hold investments or a trading company or group or overseas property. They are no longer recommended for holding UK property, whether directly or through an underlying company.

However, the response to all the discussion about offshore structures has been that UK tax rules are continuing to be tightened up in this area, and there are increased reporting requirements.

Offshore trusts can offer inheritance tax protection for non-UK domiciled individuals, and tax free roll up in the trust in return for being taxed at income tax rates on any benefits from the trust.

We have experience in guiding wealthy individuals and their families, whether beneficiaries, settlors or trustees through the complexities of issues such as the disclosures demanded and the various registration requirements. We also have experience in winding up such structures, particularly where they hold UK property.

As part of GMN International, we are also able to coordinate with colleagues in other jurisdictions to benefit from local knowledge and expertise.

How We’ve Helped:

• Advised an individual now resident overseas but with children still in the UK on structuring to pass assets tax efficiently to the UK resident family members.