Offshore investments
Offshore investment, put simply, is the keeping of money in a jurisdiction other than an individual’s country of residence.
Offshore jurisdictions are a commonly accepted solution to reducing excessive tax burdens by investing in vehicles situated in financial centres outside the United Kingdom. Over the years government legislation has made it less attractive to put money offshore to avoid being taxed but for many the advantages of investing offshore still outweigh the disadvantages, particularly regarding the tax deferral benefits.
For some, investing offshore is advantageous, for instance:
- Where a parent has provided capital to a minor
- For individuals who can expect their marginal rate of tax to fall (perhaps in anticipation of retirement or becoming non-resident in the UK)
- Investors entitled to an age related allowance
- Expatriates investing to mitigate UK tax while non-resident
- Companies investing corporate funds
- Investors who are trustees
For further information, specific to your circumstances, please speak to us as the information presented is based on existing legislation and HM Revenue & Customs practice and does not amount to tax planning advice. Any potential investor who is unsure of their tax position is recommended to take advice before investing.
