Hi I have a question. I searched the forum and didnt find the answer. Ive set up a company in Seychelles to hold intellectual property and I am NOT looking to withdraw any money from it and this company will simply collect money from other companies which are genuinely not mine and nothing to do with me. Basically this Seychelles companys bank account will keep growing constantly and I will not be withdrawing that money so think of it as a piggy bank with very longterm goals.
Question: What I want to know is if I have to legally pay tax here in the UK on this companys turn-over or profit? ( the company will not be doing any business in the UK whatsoever if thats important )
Ive spent the last few hours researching the topic online and generally what I found is that as a UK resident I must declare any offshore income or assets and the approach 'it's a company so a completely separate entity so nothing to do with me' is wrong is what I found. It basically suggests that as a beneficial owner of the company I have to pay income tax here in the UK based on the companys profit or turnover ( no specifically said which one of the two but this is the gist I got ). But in this case I genuinely will not be benefiting from any money made by this company as I wont be touching it in any way shape or form so how can that be classed as income? Also since it is a company so a separate entity at the end of the day the money in the companys bank account doesnt belong to me ( I am the sole beneficial owner if thats important ) so how can that be classed as capital gains?
I decided to go offshore because I want a bit more privacy and tax optimisation but I didnt do it to avoid tax and end up having legal issues so I am looking for an answer whether I legally have to pay any tax on this or not here in the UK where I reside.
Thank you in advance
Question: What I want to know is if I have to legally pay tax here in the UK on this companys turn-over or profit? ( the company will not be doing any business in the UK whatsoever if thats important )
Ive spent the last few hours researching the topic online and generally what I found is that as a UK resident I must declare any offshore income or assets and the approach 'it's a company so a completely separate entity so nothing to do with me' is wrong is what I found. It basically suggests that as a beneficial owner of the company I have to pay income tax here in the UK based on the companys profit or turnover ( no specifically said which one of the two but this is the gist I got ). But in this case I genuinely will not be benefiting from any money made by this company as I wont be touching it in any way shape or form so how can that be classed as income? Also since it is a company so a separate entity at the end of the day the money in the companys bank account doesnt belong to me ( I am the sole beneficial owner if thats important ) so how can that be classed as capital gains?
I decided to go offshore because I want a bit more privacy and tax optimisation but I didnt do it to avoid tax and end up having legal issues so I am looking for an answer whether I legally have to pay any tax on this or not here in the UK where I reside.
Thank you in advance
