Offshore Trusts & Corporate Structures – A Q&A

Q&A with Karen Methold – Partner, Head of Wealth Planning, Rooks Rider Solicitors

Q: Can you tell us about your areas of expertise and how they relate to offshore trusts and corporate structures?

Karen: My areas of expertise revolve around tax planning, with a particular emphasis on offshore trusts and corporate structures. I work with a diverse range of clients, providing tax advice to individuals and families investing in or moving to the UK, as well as those leaving the UK or investing overseas. I assist clients in setting up tax-efficient structures both onshore and offshore, ensuring they comply with relevant regulations and maximise tax advantages. Additionally, I advise UK resident non-domiciled individuals on their tax position in the UK and provide guidance to trustees and families with existing structures on navigating the ever-changing and expanding face of taxation in the UK.

Q: What are the benefits of utilising offshore trusts and corporate structures for tax planning purposes?

Karen: Offshore trusts and corporate structures offer various benefits for tax planning purposes. They can provide opportunities for tax efficiency, asset protection, and wealth preservation. Offshore jurisdictions often have favourable tax regimes, allowing individuals and businesses to optimise their tax positions. These structures can offer flexibility, confidentiality, and potential estate planning advantages. By utilising offshore trusts and corporate structures, individuals and families can potentially reduce their tax liabilities, protect their assets from legal claims, and maintain privacy. However, it’s important to work with experienced professionals who have a deep understanding of the legal and tax implications involved.

Q: What considerations should individuals and families take into account when setting up offshore trusts and corporate structures?

Karen: Setting up offshore trusts and corporate structures requires careful consideration and expert guidance. Some key factors to consider include the specific objectives of the structure, the jurisdiction’s legal and regulatory framework, tax implications in both the home country and the offshore jurisdiction, and compliance with anti-money laundering regulations. It is essential to work with professionals who have extensive experience in offshore tax planning and a thorough understanding of the legal and tax complexities involved. They can guide clients through the process, ensuring that structures are set up in a manner that aligns with their goals and complies with relevant laws and regulations.

Q: How do you assist UK resident non-domiciled individuals with their tax position in the UK?

Karen: I provide comprehensive advice and support to UK resident non-domiciled individuals, helping them navigate the complex tax landscape in the UK. I assist clients in determining their tax residence status, evaluating the impact of the remittance basis of taxation, and identifying tax planning opportunities. I work closely with clients to develop strategies that optimise their tax position, taking into account their specific circumstances and goals. Whether it involves structuring investments, managing foreign income, or planning for inheritance tax, I aim to provide tailored solutions that align with each client’s unique tax situation.

Q: Can you give us an overview of the UK tax implications of holding real estate in the UK?

Karen: Holding real estate in the UK can have significant tax implications. For individuals, factors such as income tax, capital gains tax, and inheritance tax need to be considered. Non-resident individuals and companies may also be subject to non-resident landlord schemes and other tax requirements. The Stamp Duty Land Tax (SDLT) is a significant consideration when acquiring UK property. It’s crucial to understand the applicable tax rules, exemptions, and reliefs to ensure compliance and make informed decisions. Working with a tax advisor who specialises in UK property tax can help individuals and companies navigate these complexities and structure their investments in a tax-efficient manner.

About Karen Methold:

Karen brings extensive expertise in tax planning, particularly concerning offshore trusts and corporate structures. Her broad knowledge and experience allow her to provide tailored advice to individuals, families, and trustees seeking tax-efficient solutions. Whether assisting clients with UK tax implications, real estate holdings, or the complexities of non-domiciled taxation, Karen’s guidance ensures clients’ tax positions are optimised and compliant with relevant laws. Working alongside a knowledgeable professional like Karen can help individuals and families navigate the intricate world of offshore tax planning with confidence and peace of mind.

Find out more about Rooks Rider Solicitors’ Wealth Planning services and get in touch

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