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.”