Offshore company to avoid CGT and death duties

[axus]

Hi


I am completely new to this and would appreciate help please. I am 70 years old and not in good health.


I have a quantity of shares which are very likely to explode in 2012. As it stands in the UK, I will be liable to 28% CGT on the profits followed by 40% " death duties " if I die within the next few years, which is a distinct possibility.


Is it feasable and possible to establish an offshore company, register the shares into that company then when the shares company are taken over in 2012, deposit the money into a company account. Then appoint my 2 children as directors and shareholders so they get the money after my death.


Many thanks


Axus

 

[JohnLocke]

I have a quantity of shares which are very likely to explode in 2012

In which country is the company located where you hold the shares for? It is important information in regards to clarify if it at all is possible to do this exercise and if so what impact it may have.

 

[axus]

Many thanks for your reply. The company is registered in republic of Ireland.

 

[JohnLocke]

Actually the Offshore company will need to acquire the shares in the Irish company, most often the price for each share reflects the assets and / or properties that may belong to the Irish company. If the price is set to a lower price, the tax authorities in the respective country (not the offshore jurisdiction) may reject such transaction if no tax is paid.


Mu suggestion would be to consult a local tax adviser or legal adviser to get the right answer.

 

[phantomoffshore]

Most often it is the onshore company that makes the complications and not the offshore company, the latter is the reason for why a offshore company can make things so much easier.

 

[JohnLocke]

Is it feasable and possible to establish an offshore company, register the shares into that company then when the shares company are taken over in 2012, deposit the money into a company account. Then appoint my 2 children as directors and shareholders so they get the money after my death.

That's possible and actually not a difficult task.