Going abroad this Easter?
It’s two weeks to Good Friday and you might be thinking about leaving for somewhere a little warmer. We're thinking about our latest seminar taking place just before Easter at the Tyneside Cinema. Our focus this time is the tax issues to be considered when individuals move themselves or their assets to or from the UK.
It’s clear from just this week’s headlines that this is very relevant. Unilever has chosen to move its corporate headquarters from London to Rotterdam, and Philip Hammond’s Spring Statement revealed measures to ensure that multinational digital businesses pay “their fair share of tax” to mention just two.
And it’s not just large multinational businesses. In the last twelve months we have advised on a wide range of circumstances involving a cross-border transaction of some sort. These have ranged from the sale of shareholdings in companies in the Baltic states, to the emigration of individuals and their families to South Africa.
The Government are of course doing their bit to make sure that HM Treasury do not lose out as individuals and corporates find it easier to move their financial lives abroad. UK assets are increasingly held in foreign hands and we have seen a definite shift in tax policy over the last five years or so to recognise this and to bring profits from those assets within the UK tax system even though the owners of those assets, on the face of it, are not. This has come at a time when we have seen UK corporate tax rates reduce, so the widening of the tax base should partly offset the fall in tax take from the rate reduction.
Non-UK residents are now taxed on sales of UK residential property and will shortly be taxable on sales of UK commercial property too. Offshore businesses developing property in the UK are now finding it increasingly difficult to shelter profits from UK tax. There are many other examples of government widening the tax base by taxing the profits of those based outside the UK
We have also experienced increasing uncertainty amongst clients as to their own future plans. The political uncertainty around Brexit and its potential impact on the next General Election has caused some to enquire about the way they might react to a change in government.
We’ll look at all of this in our Seminar “The International Family – tax adventures for the adventurous traveller” at Tyneside Cinema on Wednesday 28 March 2018 from 8:30am. For more information and to reserve your place contact Heather Newton on 0191 2246760 or at firstname.lastname@example.org.