Hello all,
Have very much enjoyed reading this forum over the last few weeks, but have struggled to find much guidance on tax efficiently shifting assets offshore.
I have a crypto related company based in the UK with a 7 figure balance in an Ethereum wallet, plus some brand and software IP that could be argued to be worth a reasonable amount of money.
I’ve just set up a company in the BVI with the intent to have all future crypto income going into it. My outstanding questions (that my accountants have given views on but I’m not convinced it can’t be better optimised) are:
If anyone offers advisory service in relation to working out my above situation, I'm more than happy to pay for that advice, please drop me a reply.
Thank you.
Have very much enjoyed reading this forum over the last few weeks, but have struggled to find much guidance on tax efficiently shifting assets offshore.
I have a crypto related company based in the UK with a 7 figure balance in an Ethereum wallet, plus some brand and software IP that could be argued to be worth a reasonable amount of money.
I’ve just set up a company in the BVI with the intent to have all future crypto income going into it. My outstanding questions (that my accountants have given views on but I’m not convinced it can’t be better optimised) are:
- After paying UK taxes on this income, how would I shift both our Ethereum wallet funds and IP over from the UK ltd co to the BVI co tax efficiently, and without breaking any tax evasion related laws? I have not yet created a direct link between the Ethereum wallet and the UK company (i.e. cashing out funds to our UK bank acc) in the event that there was a way to declare those funds to the BVI company, however it doesn't appear there is. Hence why I will likely declare those funds to the UK co and pay tax there.
- Am I at any risk of an investigation in future due to links to the UK company and it all just being pushed off shore? I am open to both leaving the UK company open with a smaller part of non-crypto business running through it, but I would also be happy to close it down if it made more sense.
- I understand I’ll likely need a ‘mid-shore’ company in the likes of Cyprus as the operating business, or as a service business for paying out things like my dividends or salary. Could that play a part in moving the assets?
- I don’t particularly want to live in the BVI, but I am very flexible in where I base myself. No partner, no kids, have been bouncing around countries for years. How can I avoid a country deciding my business owes local taxes there if I’m working on the business day to day from that country? Do I need to distance myself as being the business operator with staff running operations locally in BVI or Cyprus, for example? Portugal's NHR could be an option but I do worry about being caught out for leading and operating the business from there, even if I am being paid in dividends.
If anyone offers advisory service in relation to working out my above situation, I'm more than happy to pay for that advice, please drop me a reply.
Thank you.
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. You should have left UK officially before setting anything up. HMRC will have fun with you for years to come with this new company reporting. They may wait some years then hit you with an audit by which time the company may have assets.
