The United Kingdom (UK) comprises England, Scotland, Northern Ireland and Wales and is one of the 28 member states of the European Union.

The UK is considered by many professional tax planners to be a tax haven for non-UK nationals, and the “best kept secret in Offshore Financial Planning”. Although all UK companies are liable to UK Corporation Tax (CT) on all sources of income and capital gains, with proper advice and planning, a UK company can function as tax-efficiently as an IBC from a low-tax jurisdiction.

For more information about UK corporation, please refer to the following:

United Kingdom Corporations - Introduction

The following is a summary of the core attractions of using a UK company in tax planning.
1. Taxation

Large Tax Treaty Network, over 100

The UK company can also benefit from the EU Parent/Subsidiary Directive, whereby withholding taxes on intra-EU dividends is eliminated altogether.

Reduced corporate tax rates – profits taxed from 0% to 33%. For example, profits between GBP50,001 and GBP300,000 are taxed at the “small companies rate” of 19%.

Exemption from Capital Gains Tax on disposal of shareholding in a trading group.

Exemption from Capital Gains Tax on disposal of assets situated in the UK by non-residents.

No withholding tax on dividends received from other UK companies

No withholding tax on distribution to non-resident shareholders

Generous tax policies: Losses carried forward and backward, relieves available on tax on foreign dividend received etc.

For more information about UK corporation, please refer to the following:

United Kingdom Taxation

2. Low Cost of Maintenance of a UK Company

No minimum paid up share capital

No audit requirement for companies with turnover below GBP1,000,000 AND net assets of less than GBP1,400,00

Ease of Establishment – shelf companies are available

3.International Respectability and Protection

UK companies are often used to acquire assets in certain foreign locations to minimize risks of expropriation by foreign governments

In general, UK companies are frequently used in the following situations:

As a Holding Company in group structures:

• Use of UK Holding Company in International Tax Planning

As a Trading Vehicle: UK companies as a trading vehicle can be used in the following structures:

• As an agency company acting for an undisclosed offshore company (principal)
• As a trader in its own right

Please refer to the following:

Use of UK Company in Trading Ventures

The directors and management of Manivest Asia are professionals in the offshore industry having served the Asia market for over fifteen years. Through our offices in Hong Kong, Shanghai and Macau as well as our associates in other Asia cities, we offer a full range of comprehensive value-added services to professional advisors and their clients.

Manivest Asia offers the following services:

Incorporation of UK companies and companies in other onshore/offshore jurisdictions

Full corporate management services

Registered office, business office, mail redirection and business centre

Accounting services and VAT registration

Re-invoicing services

Asset protection and preservation advisory services

Business establishment services

Market exploration services