| "You've probably read in the newspapers
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| | he would have otherwise had to pay if
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| of various celebrities and successful
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| | he'd extracted the dividends.
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| business who manage to avoid or at least
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| | Using a tax efficient holding company.
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| substantially reduce their UK taxes -
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| | Famous bands such as U2 and the Rolling
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| whilst a significant proportion of the
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| | stones make use of some of the best
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| general public are paying close to 50% of
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| | offshore companies to avoid paying tax on
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| their income in tax. Well, there's
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| | much of their income. U2 for example used
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| nothing to prevent you using some of
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| | to fall within the Irish tax regime which
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| these techniques to slash your UK taxes
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| | had a longstanding tax exemption for
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| as well, depending on your circumstances.
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| | artists. When this loophole was tightened
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| Here's some of the techniques that the
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| | up, they moved their holding company to
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| Rich & famous use:
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| | the Netherlands to take advantage of tax
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| Make the most of your offshore status
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| | free royalties. There are lots of other
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| People like Mohammad al Fayed make
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| | countries that can also offer tax
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| tremendous use of their non UK domiciled
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| | efficient holding companies such as
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| status. If you're an overseas national
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| | Spain, Denmark and Cyprus. Using tax
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| and were born overseas (typically your
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| | efficient trading companies.
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| father will also have been a non UK
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| | Multinationals such as Coca Cola make
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| domiciliary at the date of your birth)
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| | good use of a string of offshore
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| you can avoid paying any tax on your
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| | companies to ensure that they can
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| overseas income and capital gains. The
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| | redistribute profits within the group to
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| main condition to this is that you need
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| | reduce the overall 'effective' rate of
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| to keep the income or proceeds outside of
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| | corporation tax. (It is reducing this
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| the UK. As you'd expect though there are
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| | effective rate that is the main focus of
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| ways around this to enable some of the
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| | many in house tax lawyers lives!)
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| proceeds and income to be brought into
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| | Actually move overseas Celebrities such
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| the UK free of taxes
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| | as James Blunt, Michael Schumacher and
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| Make the most of your spouses offshore
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| | Boris Becker have all moved offshore to
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| status
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| | ensure they have only limited UK tax
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| If you're lucky enough to have a husband
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| | obligations. They've based themselves in
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| or wife that is either non UK resident or
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| | Switzerland and are local residents. The
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| non UK domiciled you can use their
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| | beauty of Switzerland is the 'fiscal
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| offshore status to your advantage. This
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| | deal' which allows the tax liability to
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| is what Philip Green did (the billionaire
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| | be fixed at an artificially low amount.
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| owner of BHS). His wife is a resident of
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| | So there you have it - some ideas to get
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| Monaco and he ensured that she extracted
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| | you thinking about how you could use the
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| dividends from his UK companies free of
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| | offshore tax planning techniques of the
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| UK (and overseas) tax. This saved him
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| | rich and famous.
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| paying UK tax of around £200Million that
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| |
|
