View more on these topics

Offshore foundations key to avoiding non-dom tax, says SCF Group

Private interest foundations could allow non-doms to retain tax benefits and avoid the need to pay the new £30,000 tax exemption fee recently imposed by the Government.

Trust and management firm SCF Group says non-domiciled UK residents can avoid the need to pay the fee by setting up private interest foundations in Liechtenstein or Panama.

The SCF Group says a PIF is a civil law concept used to legally separate an individual or individuals from their assets – similar in function to a trust.

It says a PIF is a self-owning entity and, unlike a trust, can be treated like a private limited company, so falling outside the provisions of anti-trust legislation.

PIFs can also be used to replace existing trusts and separate ownership from their settlers and creators. The SCF Group says key jurisdictions offering private interest foundations are Liechtenstein and Panama because they incur no or little tax consequences.

SCF Group chief executive Barry Spencer-Higgins says: “Many of the non-domiciled residents affected by the new rules are not in the super-rich bracket. Therefore a levy of £30,000 as well as being subject to UK taxes such as capital gains and inheritance will make the UK considerably less attractive as a place of work.

“Private interest foundations could provide a solution which will keep both non domiciled residents and their investments in the UK.”

Recommended

Industry facing £28m FSCS levy

The financial services industry will be asked to contribute £28.3m towards the Financial Services Compensation Scheme levy for 2008/09, down by £2.4m from original estimates.

Open doors to closed books

Recent research by Ernst & Young has identified that there is over £250bn of assets in closed funds.

Work together

I have been quick to criticise the doom-mongers in the past who have been talking the mortgage market down and negatively affecting overall consumer confidence.

Kingfisher appoints Hargreaves Lansdown as group Sipp provider

Home improvements retailer Kingfisher has appointed Hargreaves Lansdown as its group Sipp provider.The new scheme is being set up initially to accommodate maturing shares and AVC contributions.The scheme will run alongside Kingfisher’s existing closed defined benefits scheme, and its open defined contribution scheme run by Standard Life. Kingfisher employees already have access to the Hargreaves […]

The Rubik’s Cube: China’s policy trilemma

By Douglas Turnbull, Investment Director, Head of Chinese Equities China faces a ‘Rubik’s Cube’ policy trilemma, whereby it needs to sustain a minimum acceptable level of growth, deal with issues such as overcapacity and reform the financial system to make it a far more efficient allocator of capital. Given the contradictory nature of these objectives, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment