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Dragon

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Dec 29, 2017
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#1
Hi all,

So here it goes.

I am a British, who is married to an to a lady in Asia who inherited this land. We have are in the process of selling a house which is being sold for a lot more than it should be worth due to the demand of some contractors.

I am planning to move back to the UK and but have no means to show i paid for it so question will be asked. We thought since we want to set up an offshore company to trade is it possible to set one up for purchasing properties in the UK (For Living and 1 for rent)

I am a low income worker. The house is worth allot of money beyond what i can afford so this will give us a great boost.

How can this be structured and where and who is recommended for such work. We are looking for a reliable ethical company.

The purpose of this is: Transfer Money from Asia to Business Account, Faciliate purchase of the homes in the UK.

Second Purpose is: We are looking to Import Products or Sell from Asia so we will also want or can use same company for trading or setup another one. Please Advise.

Thanks
 
Last edited by a moderator:
#2
Hi Dragon!

Purchasing the property personally or through a company in your name will still require "proof of funds"and how you got those funds.

The way around this is to open up an offshore company which will receive the proceeds from the sale of your Wife's inherited land and put this company in the name of someone else (can be your Wife if she is OK with the next step). You then "loan" the funds needs to purchase your properties in the UK through a loan agreement. Like this:

1. Set up an offshore entity to receive proceeds
2. Loan the proceeds back to yourself personally or to another offshore company (proof of funds proved + acquisition)
3. Purchase your properties in the UK and pay back whatever is agreed in the loan agreement (usually 5 year grace period then 200EUR per month thereafter for a period of 25 years etc)

The questions:

1. Where is the property you are selling based
2. Who is the owner of this property
3. Where is the land inherited (this may end up being a beneficial asset which will make this harder to combat)
4. Which Asian country are we talking about? Malaysia, Singapore, Thailand will make this harder to combat)

Hope this helps!

Em
 
#3
The questions:

1. Where is the property you are selling based: Indonesia, It worth allot now as the land we have is in high demand by business investors for malls. So we are being offered more than its market value. hence the need to sell and move on


2. Who is the owner of this property : My Wife as i personally can not own this house. However i did pay for some of the building cost to build a house.

3. Where is the land inherited (this may end up being a beneficial asset which will make this harder to combat) She Had this before i married her she purchased it cheap from a family friend who was desperate at that time for payment of hospital bills.

4. Which Asian country are we talking about? Malaysia, Singapore, Thailand will make this harder to combat) Indoinesia
 
#5
Hey,

So you will need to keep things separate under you/your wife. Unless you can do what is stated below in option 4.

The properties currently under her name will need to be sold under her and the proceeds sent to an offshore company which she will own. Her offshore company will then loan the funds to you/a company in your name and then you can move on safely from there.

Options:

1. Loan the funds personally to you which means you will personally purchase the properties
2. Incorporate an offshore company which will purchase the properties
3. Incorporate a UK company which will purchase the properties
4. Keep everything in your Wife's name and just purchase the UK properties directly. She will have proof of funds and how she got them through the sale of her properties.

Obviously you will need to check Indonesian law to see which taxes need to be paid such as capital gains and land tax etc...

Thanks!

Em
 
#6
We will clear the Land and building tax that needs to be paid upon the sale here. This is not an issue and has to be paid when the sale happens, this is how the notary advised me.

I would personally either like it under my name or under a company name and she does not want it under her name and prefer i handle the fiances and assets
 
#7
1. Loan the funds personally to you which means you will personally purchase the properties
2. Incorporate an offshore company which will purchase the properties
3. Incorporate a UK company which will purchase the properties

Our of these 3 option which is easier? Which provides better asset protection against anything or anyone?
 
#8
Number one is easiest
Number 2 has better financial conditions
Number 3 has better asset protection under UK Law

"Personally" I would do number 3.

Number one: you will pay personal tax yearly on your income on the rentals
Number two: you will not pay tax but there is legal structures needed so will not be worth it unless your income is over £10K per month or you have multiple assets generating income
Number three: you will pay UK corporation tax on any income generated
 
#12
Dragon said:
Is number 2 and number 3 possible to combine as one so a offshore company owns the Uk Company?
Click to expand...
One offshore company would need to be under your Wife's name in order to loan the money. The other offshore company can be owned by you to receive the money.

A UK company cannot be owned by a Corporate entity only, it needs to be owned by at least one individual person. If you want to have a UK company you can just have a Scottish LP which can be owned by 2 Corporate entities. However, you are then making the structure difficult and if you want a trouble free transaction I would just do this:

1. Sell the assets in Indonesia
2. Receive the proceeds to an offshore company
3. Loan the proceeds yourself personally

You will then be able to sleep at night
 
#16
Seems to have gone off topic totally no idea what the last post refers too.

Just wandering if anyone can advise on a possible structure and whom i can use for this and other business related matters i have for incorporation.
 
#17
Dragon said:
I am planning to move back to the UK and but have no means to show i paid for it so question will be asked. We thought since we want to set up an offshore company to trade is it possible to set one up for purchasing properties in the UK (For Living and 1 for rent)
Click to expand...

Yes you can set one up an offshore company to purchase property in UK but why would you do it this way? In the UK buying property via an offshore company means you will be subject to Annual Tax on Enveloped Dwellings (ATED) depending on value of property. Your Stamp Duty & Land Tax (SDLT) will also be heavily increased due to using a company. The only advantage is you can defer inheritance tax (IHT) via use of an offshore company.

Do the calculations below and see if it is worth it.

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
Annual Tax on Enveloped Dwellings - GOV.UK

The due diligence for source of funds will be another stumbling block. However that is easily resolved by depositing funds with an offshore bank and getting a back to back loan against those funds in GBP. Then present the source of funds as the bank loan agreement during the buying process. To be honest 99% of foreign buyers of property in London are buying with laundered money via this method. The UK does not try to hard to stop this as the property market will fall apart otherwise. Nobody is investigating source of funds they just want some paperwork to be able to tick boxes on compliance documents.
 
#20
Dragon said:
How about a UK Company owning those properties? does the same tax laws apply?
Click to expand...

If a UK company is doing it as a business i.e professional letting of property then you just pay normal income taxes and ATED does not apply
 
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