offshore corp + MT + UK based ..

[dcisg]

hey all

first of all big thank you for all the good content here, I could learn alot in the last few weeks by just reading through the forum, I finally decided to register and start straight with a question i´m not sure with...

i´m working full time in UK and do crypto trading on the side which makes me more money than my job....I´m trying to plan now in case I want to cash out a 6 figure sum within the next 12 months and I read that most people here have a corp somewhere in Costa Rica, Belize etc linked to a Mister Tango business account for banking.

my questions would be:

1. If I set up a digital marketing company (i wanted to that anyway for an online marketing business) in Belize and get a MT business account, can I use this company also for my crypto trading, e.g. to cash out ?

2.Am I right that as long as I live and work in the UK in my full time job, this plan/setup would not be legal ?

3. What would be the most safe and legal way to do this ? become a perpetual traveler ?

thanks alot in advance!

 

[IntlOffshore]

2.Am I right that as long as I live and work in the UK in my full time job, this plan/setup would not be legal ?

Perhaps I missed something...is your plan to not declare this income?

 

[dcisg]

Perhaps I missed something...is your plan to not declare this income?

the crypto trading profits you mean ?

 

[IntlOffshore]

the crypto trading profits you mean ?

I don't know...what's the not legal part that you mentioned in the original post?

 

[dcisg]

I don't know...what's the not legal part that you mentioned in the original post?

as far as I know is foreign income/capital gains also taxable if I resident in the UK.

 

[diablo]

as far as I know is foreign income/capital gains also taxable if I resident in the UK.

have you always lived in the UK ?

 

[dcisg]

have you always lived in the UK ?

nope i moved to the UK in 2013 from my home country, another EU country.

 

[blizz]

so you may consult a tax professional.. I read on this forum a few times that it is possible to ear profits from offshore corps tax free in the UK! It's worth to have a look into.

 

[grieff]

If you are tax resident in the UK now, you enjoy "non-domicle" for the first 7 years (2013-2020) for free (you can extend it after that for £30k year) whereby the HMRC does not tax you (or care) about your any of your wealth, capital gains or income that resides or is generated outside the UK, provided (and this is important) you do not bring any of it into the UK (coz if you do, it becomes taxable... in theory... So for example any interest earned on monies you have standing to your bank account in your home country is exempt from UK tax for the first 7 years (and should by the same token not be taxed in your home country either since you are now tax resident in the UK).

What this means is that as long as your crypto business has taken place offshore UK, and you cash in to fiat that you deposit to your old bank account in your home country before the 7th anniversary of you moving to the UK, you should legally not be taxable for this in the UK.

Disclaimer: This is my personal experience and understanding as a layman and non-professional and not being a tax advisor. That said, you should be able to verify with Google.

 

[JohnLocke]

If you are tax resident in the UK now, you enjoy "non-domicle" for the first 7 years (2013-2020) for free (you can extend it after that for £30k year) whereby the HMRC does not tax you (or care) about your any of your wealth, capital gains or income that resides or is generated outside the UK, provided (and this is important) you do not bring any of it into the UK (coz if you do, it becomes taxable... in theory... So for example any interest earned on monies you have standing to your bank account in your home country is exempt from UK tax for the first 7 years (and should by the same token not be taxed in your home country either since you are now tax resident in the UK).

What this means is that as long as your crypto business has taken place offshore UK, and you cash in to fiat that you deposit to your old bank account in your home country before the 7th anniversary of you moving to the UK, you should legally not be taxable for this in the UK.

Disclaimer: This is my personal experience and understanding as a layman and non-professional and not being a tax advisor. That said, you should be able to verify with Google.

thank you for clarification, this is exactly what I have heard for years back and which I have seen a few people already doing with success.

 

[dcisg]

If you are tax resident in the UK now, you enjoy "non-domicle" for the first 7 years (2013-2020) for free (you can extend it after that for £30k year) whereby the HMRC does not tax you (or care) about your any of your wealth, capital gains or income that resides or is generated outside the UK, provided (and this is important) you do not bring any of it into the UK (coz if you do, it becomes taxable... in theory... So for example any interest earned on monies you have standing to your bank account in your home country is exempt from UK tax for the first 7 years (and should by the same token not be taxed in your home country either since you are now tax resident in the UK).

What this means is that as long as your crypto business has taken place offshore UK, and you cash in to fiat that you deposit to your old bank account in your home country before the 7th anniversary of you moving to the UK, you should legally not be taxable for this in the UK.

Disclaimer: This is my personal experience and understanding as a layman and non-professional and not being a tax advisor. That said, you should be able to verify with Google.

Interesting, thank you.

The problem is - my Coinbase and binance account are registered with my personal address in UK, in this case it would not work right ? What if i would have registered with the address of my home country instead ?