Is UK tax free or 20% on profits?

[james David]

Dear Gurus,

Usually agents trying to misleading you establishing an off shore company in UK.
one agent said it is a tax free
2nd agent said it is a 20%

Would you please explain us where is the truth?

 

[Samuel Newman]

UK is not tax heaven for sure
Corporation tax rate on company profits is 19%
Corporation Tax rates and reliefs
that how it works if we talk about UK limited company

BUT, if you form Limited Liability Partnership, it will have no corporate tax
Potentially UK LLP with two members being offshore companies will not pay any Corporation Tax or personal income tax in the UK, if members or directors of offshore companies are non-UK residents; no trade is made in and with the UK; control over UK LLP is exercised overseas. It is possible that UK LLP tax liability will be zero.

 

[james David]

UK is not tax heaven for sure
Corporation tax rate on company profits is 19%
Corporation Tax rates and reliefs
that how it works if we talk about UK limited company

BUT, if you form Limited Liability Partnership, it will have no corporate tax
Potentially UK LLP with two members being offshore companies will not pay any Corporation Tax or personal income tax in the UK, if members or directors of offshore companies are non-UK residents; no trade is made in and with the UK; control over UK LLP is exercised overseas. It is possible that UK LLP tax liability will be zero.

Thank Samuel,
The Director and share holders not a UK citizen and don't have a UK residence. However, the operation mainly between Europe and Asia and south america.

for such scheme is it a tax free?

 

[Martin Everson]

Thank Samuel,
The Director and share holders not a UK citizen and don't have a UK residence. However, the operation mainly between Europe and Asia and south america.

for such scheme is it a tax free?

No its not tax free. Perhaps you are confusing it with dividends of UK companies paid to non-UK residents are free of any UK withholding tax. It is then down to foreign recipient to declare that income.

 

[Samuel Newman]

No its not tax free. Perhaps you are confusing it with dividends of UK companies paid to non-UK residents are free of any UK withholding tax. It is then down to foreign recipient to declare that income.

LLP may be completely tax free
Ltd is always taxable

 

[Martin Everson]

LLP may be completely tax free
Ltd is always taxable

Yes correct. thx

 

[james David]

LLP may be completely tax free
Ltd is always taxable

Mr. Samuel, how we do avoid paying taxes if we choose LLP?

 

[Samuel Newman]

Mr. Samuel, how we do avoid paying taxes if we choose LLP?

you need to have LLP, formed by two Seychelles IBC
it could be nominee service, or it could be companies, owned by you solely
also, it is important to know your counrty of residence, because of CRS it might cause some problems

 

[james David]

you need to have LLP, formed by two Seychelles IBC
it could be nominee service, or it could be companies, owned by you solely
also, it is important to know your counrty of residence, because of CRS it might cause some problems

The client wants to open LLP in UK. no nominee service. he is going to be the owner and director. He is not a citizen of UK. what problem could CRS cause?