UK Non Dom with Offshore Company

[Isleofmanguy]

Hi,

Would like thoughts for a UK Non-Dom looking to set up an offshore company with family directors investing in a portfolio of non-UK dividend shares.

The offshore company would be tax resident in the UK (as 'central management and control' reside in UK) , so would pay UK corporation tax but the dividends would benefit from dividend exemption, so in effect no UK corporation tax would be payable. No extraction of personal dividends from offshore company until I leave the UK.

Thoughts?

I have been advised to use an Isle of Man company but finding it very difficult to open an Isle of Man bank account without local Isle of Man directors which adds to the cost/viability.

Any thoughts on other jurisdictions (e.g. BVI) where I can also open a corporate bank account without local directors with one of the well known banks?

Hi - this isn't directly a solution - but - is there a need for the IOM Co to open a bank account in the Isle of Man ? Our banking universe here on the Island is a bit limited - and usually our banks do require local control but - of course Isle of Man companies can open bank accounts any where a bank will accept an application so that might provide you with some other options. For example - maybe the family already has a banking relationship elsewhere that it can leverage ? Here locally - you may find Nedbank and Investec worth speaking to - depending on whether you are prepared to use their Investment services as this seems to concentrate their minds a little more on the provision of banking services.

 

[willow2013]

Hi - this isn't directly a solution - but - is there a need for the IOM Co to open a bank account in the Isle of Man ? Our banking universe here on the Island is a bit limited - and usually our banks do require local control but - of course Isle of Man companies can open bank accounts any where a bank will accept an application so that might provide you with some other options. For example - maybe the family already has a banking relationship elsewhere that it can leverage ? Here locally - you may find Nedbank and Investec worth speaking to - depending on whether you are prepared to use their Investment services as this seems to concentrate their minds a little more on the provision of banking services.

Yes I already had spoken with Investec which was a 'no'. I have tried all of the other jurisdictions where I have a relationship and that is also a 'No'. Not sure, if its the level of investment/cash is limited - maybe I am too small. Haven't tried Nedbank so will reach out them.

 

[Isleofmanguy]

Yes I already had spoken with Investec which was a 'no'. I have tried all of the other jurisdictions where I have a relationship and that is also a 'No'. Not sure, if its the level of investment/cash is limited - maybe I am too small. Haven't tried Nedbank so will reach out them.

Yes I already had spoken with Investec which was a 'no'. I have tried all of the other jurisdictions where I have a relationship and that is also a 'No'. Not sure, if its the level of investment/cash is limited - maybe I am too small. Haven't tried Nedbank so will reach out them.

I'm not sure if you have set the company up yet but depending on which CSP you are using - they may have some leverage for you too. Capital International are also worth considering as they are stock brokers as well as bankers so should have a good investment platform. The banking platform is pretty good actually.

 

[willow2013]

I'm not sure if you have set the company up yet but depending on which CSP you are using - they may have some leverage for you too. Capital International are also worth considering as they are stock brokers as well as bankers so should have a good investment platform. The banking platform is pretty good actually.

Yes I was aware of them as they were mentioned to me. There is custody fees attached to them which just added to the overall cost and made the structure unviable, again it might be because of the level of my investment.

 

[Isleofmanguy]

I'm not sure if you have set the company up yet but depending on which CSP you are using - they may have some leverage for you too. Capital International are also worth considering as they are stock brokers as well as bankers so should have a good investment platform. The banking platform is pretty good actually.

Yes I was aware of them as they were mentioned to me. There is custody fees attached to them which just added to the overall cost and made the structure unviable, again it might be because of the level of my investment.

The other option to consider is an EMI - I suppose - but maybe you have already considered that - quite a few of them will open for IOMCo's - including Revolut.

 

[willow2013]

The other option to consider is an EMI - I suppose - but maybe you have already considered that - quite a few of them will open for IOMCo's - including Revolut.

I think the issue for me is that I have to keep away / any funds connected to the UK or remotely connected as that would be considered a remittance.