Cayman Islands company

[Martin Everson]

Tax free within UK - are you talking about ISAs and SIPPs or something beyond those? Interested to hear more

No.

I am talking about investing in UK Venture Capital Trusts. Which are CGT tax free and dividend tax free for investments of up to £200,000 a year.

I give you an example of how a wealthy UK couple can live tax free in UK....

Both husband and wife invest £200,000 each into i.e the Mobeus Income & Growth VCT (LSE:MIX). The fund produces an average dividend of 15.5% over last 5 years. The dividend is tax free and so is any CGT if they decide to sell. So they have invested in the fund £400,000 between them for the last 5 years which is £2,000,000 in total. They receive an average of 15,5% dividend in the current year so £310,000 dividend. As per HMRC rules they do not have to pay tax on that dividend or even declare it on their tax return. They are in effect living tax free in UK with no filing requirements if that is their only source of income.

--- quote start

Individuals aged 18 or over who acquire ordinary VCT shares (whether by subscription for new shares or otherwise) are exempt from income tax on dividends in respect of shares acquired within the ‘permitted maximum’.

The permitted maximum for acquitedVCT shares is £200,000 (by market value) in a tax year for 2004-05 onwards (a year beginning on 6 April and ending on 5 April in the following year).

Investors who receive exempt dividends do not have to show them on their tax returns and HMRC officers should not assess investors on exempt dividends.

--- quote end

If they continue the process of compounding these investment returns using their maximum allowance for VCT of £200,000 each you can see how they can build wealth in UK tax free over the long term while living in the UK as UK citizens. As you know Venture Capital funds (VCT's) although they can be diverisifed are high risk as your investing in startups where failture rate is high and loses need to be offset by winners just like crypto, Hence your dependent on track record of investment manager etc.

You can use your own figures to see if it makes sense but should be a part of any investment portfolio you develop due to tax advantages if offers as a UK resident.

 

[trek6453]

No.

I am talking about investing in UK Venture Capital Trusts. Which are CGT tax free and dividend tax free for investments of up to £200,000 a year.

I give you an example of how a wealthy UK couple can live tax free in UK....

Both husband and wife invest £200,000 each into i.e the Mobeus Income & Growth VCT (LSE:MIX). The fund produces an average dividend of 15.5% over last 5 years. The dividend is tax free and so is any CGT if they decide to sell. So they have invested in the fund £400,000 between them for the last 5 years which is £2,000,000 in total. They receive an average of 15,5% dividend in the current year so £310,000 dividend. As per HMRC rules they do not have to pay tax on that dividend or even declare it on their tax return. They are in effect living tax free in UK with no filing requirements if that is their only source of income.

--- quote start

Individuals aged 18 or over who acquire ordinary VCT shares (whether by subscription for new shares or otherwise) are exempt from income tax on dividends in respect of shares acquired within the ‘permitted maximum’.

The permitted maximum for acquitedVCT shares is £200,000 (by market value) in a tax year for 2004-05 onwards (a year beginning on 6 April and ending on 5 April in the following year).

Investors who receive exempt dividends do not have to show them on their tax returns and HMRC officers should not assess investors on exempt dividends.

--- quote end

If they continue the process of compounding these investment returns using their maximum allowance for VCT of £200,000 each you can see how they can build wealth in UK tax free over the long term while living in the UK as UK citizens. As you know Venture Capital funds (VCT's) although they can be diverisifed are high risk as your investing in startups where failture rate is high and loses need to be offset by winners just like crypto, Hence your dependent on track record of investment manager etc.

You can use your own figures to see if it makes sense but should be a part of any investment portfolio you develop due to tax advantages if offers as a UK resident.

Wow thanks. Didnt even know about these. Will look into them so more. Thank you!

 

[KDX]

Sorry how does a company help here versus just using a personal account on an offshore broker based outside UK and EU?

No broker will onboard you due to regulations if you try to apply for a personal account outside the EU/UK as an EU/UK individual as far as I know.

At the moment yes, most transactions will be via personal account as that is better tax wise for me. If CGT tax was to change though, I would put more through the new company. It give me a different option in case I need it and better access. So keen to keep costs as low as possible for now

Tax free within UK - are you talking about ISAs and SIPPs or something beyond those? Interested to hear more

You're taking tax into account here..?

The only reason for this that would make sense is to access US instruments and have an unregulated vehicle so that you can try to trade professionally.

If that is not your goal, I would advise you to spend your time and money on something that will produce better results, because this won't.

If you're not planning to invest aggressively where you're able to beat the market and use highly leveraged strategies to boost your profits, there's really no reason for this IMO.

 

[Martin Everson]

No broker will onboard you due to regulations if you try to apply for a personal account outside the EU/UK as an EU/UK individual as far as I know.

Not true.

 

[trek6453]

No broker will onboard you due to regulations if you try to apply for a personal account outside the EU/UK as an EU/UK individual as far as I know.


You're taking tax into account here..?

The only reason for this that would make sense is to access US instruments and have an unregulated vehicle so that you can try to trade professionally.

If that is not your goal, I would advise you to spend your time and money on something that will produce better results, because this won't.

If you're not planning to invest aggressively where you're able to beat the market and use highly leveraged strategies to boost your profits, there's really no reason for this IMO.

Yes, leverage and instruments outside of UK that are not available to UK people are exactly why I want this offshore company.

And yes, no idea if I will be profitable but I want to try. lmao. At the moment I cant even ACCESS some stuff so thats the first hurdle

 

[KDX]

Not true.

So you can just onboard yourself to e.g. IBKR US from the EU? from my knowledge that's not true?

 

[Martin Everson]

Wow thanks. Didnt even know about these. Will look into them so more. Thank you!

As always seek professional tax advice. I am just merely suggesting what some people are already doing and enjoying in UK .

 

[Martin Everson]

So you can just onboard yourself to e.g. IBKR US from the EU? from my knowledge that's not true?

You can look at SG or HK brokers for example. IBKR is not only broker out there.

 

[lory]

Not sure what you mean by 10,000 USD for incorporation? it definitely costs less, half of that really from what ive been quoted.

But the substance and e.g. director services can cost that much, I think right around that 10K mark. Probably cheaper alternatives out there but yeah.

What agent has quote you much less, mind to share any contact there?

 

[SoNewToAllShit]

Would like to know an trusted agent in the Cayman's