U.K. Ltd with Seychelles holding Co?

[bigladsmith]

Hi all,

As per the title a few basic questions I have:

The likely setup would be the U.K. ltd would work with U.K. companies providing professional services. The U.K. ltd would be one director and the director providing the actual services. The UK director would be U.K. tax resident also.

• is this setup possible
• What’s the benefits such as U.K. and Seychelles tax savings (or not)
• Can an existing Seychelles IBC be used as a holding co?
• Do I need a bank account with both U.K. and Seychelles?

 

[JustAnotherNomad]

Ok, I don’t know anything about the UK in particular, but generally speaking:

1. Probably
2. None
3. Why not?
4. No

What you want isn’t possible, unless you spend a lot of money to hire people in the Seychelles. High tax countries like the UK have lots of anti-avoidance rules in place to make sure the cost of a legal setup will be so high that it wouldn’t make sense.
Unless you move to a different country, you can choose only 2 out of 3 for your structure:
[ ] cheap
[ ] legal
[ ] substantial tax savings

Hope that helps.

 

[CaptK]

Ok, I don’t know anything about the UK in particular, but generally speaking:

1. Probably
2. None
3. Why not?
4. No

What you want isn’t possible, unless you spend a lot of money to hire people in the Seychelles. High tax countries like the UK have lots of anti-avoidance rules in place to make sure the cost of a legal setup will be so high that it wouldn’t make sense.
Unless you move to a different country, you can choose only 2 out of 3 for your structure:
[ ] cheap
[ ] legal
[ ] substantial tax savings

Hope that helps.

Couldn't have put it better.
@bigladsmith What industry are you in

 

[Perry8]

Ok, I don’t know anything about the UK in particular, but generally speaking:

1. Probably
2. None
3. Why not?
4. No

What you want isn’t possible, unless you spend a lot of money to hire people in the Seychelles. High tax countries like the UK have lots of anti-avoidance rules in place to make sure the cost of a legal setup will be so high that it wouldn’t make sense.
Unless you move to a different country, you can choose only 2 out of 3 for your structure:
[ ] cheap
[ ] legal
[ ] substantial tax savings

Nailed it.

My longer answers would be:

1. Yes
2. Nonthing on corporate taxes. Since the UK does not have witholding taxes you could potentially save taxes on dividends from the UK ltd to the Seychelles holding company. But, UK CFC rules or "re-domicile" rules can alter this depending on the circumstances.
3. Yes
4. No. You definatly need an account for the UK company. If you want to pay dividends to the Seychells company you will need an account for that company as well.