Lee Hadnum has split this book into 2 separate parts. Part 1 deals with offshore companies and explains the different types of offshore options, detailing the pros and cons of each. He advises on how to make sure the company is non resident i.e. where the 'real heart' of the company is, and includes recent guidance from the HMRC. He also addresses the changes in the 2013 Finance Bill. Part 2 deals with offshore trusts and explains the different types of trusts with many examples given. He also provides in-depth insight into how the anti-avoidance rules work. As with his previous books, Lee Hadnum writes clearly and concisely, cutting out the jargon which makes the subject so difficult to understand. The book is up to date with plenty of information about 2013 tax changes. Each topic is addressed in an easy to read manner, making the book an invaluable tool for anyone wishing to have a clearer understanding of how offshore companies and trusts are taxed. A great reference book on a complicated subject.
Use of an offshore company is one of the central planks of tax planning. If a company is established as non-UK resident, it is exempt from the punitive capital gains tax and tax on foreign profits; often, this is a tremendous gain. However, in tax planning the devil is in the details, since governments have every incentive to discourage creative offshoring. Fortunately, Hadnum's book is full of detail, and structured for ease of understanding.
Hadnum describes the various types of offshore entity: IBC, Bearer share companies, trusts, PCCs and others. You may be unfamiliar with some of these abstruse terms, but all is explained quite clearly in the book. Command structures that would help a business to become non-resident, and other legal requirements such as compliance with anti-avoidance rules are discussed. Hadnum also explains precisely who is in a realistic position to benefit from use of offshore companies and trusts. If in doubt I advise you to pick up the book, since my impression is that a lot of people fail to exploit these (admittedly complicated) opportunities.
Lee Hadnum carefully instructs the reader in the principles of offshore tax planning. If you own a company and want to slash your tax bill, it will be necessary to establish management and control overseas. In order to execute this difficult manoeuvre, at minimum you'll need a book like Hadnum's. Working alone, one would need to consult HMRC guidance and the relevant case law, but this isn't easy to locate or interpret without expert advice.
In particular, Hadnum opened my eyes to the problem that even if an offshore company has no fixed place of business in the UK, if it "habitually" trades in the UK through a particular, dependent agent, this can be classed as a UK establishment and taxed as normal. Use of a professional agency company is a decent solution to this problem, but I wasn't aware of any such issue before reading the book.
Apart from offshore companies, Hadnum provides a lengthy section on trusts; this looks equally good, although it was less relevant to my priorities.
Lee Hadnum has given us a fantastic series of books that are great for those living in the UK but also has a little something for people from 23 other countries. With the British Government establishing new Anti-Avoidance laws this is book is must have. It explains in detail the impact that these new laws will have on individuals with companies offshore.
The book covers your benefits, explains in detail how to get established as a non-resident company and includes reviews of recent cases in that area. You also learn how and when you are taxed on income, capital gains from offshore companies and how you can use the double tax treaties to maximize your use of an offshore company. Learn how to use the off shore company to lower the amount of taxes you pay in the UK.
There is so much information in this and other lee Hadnum books in the series that taxpayers should be forming a queue to buy them. Get a copy today and next tax season be amazed by your savings.
You will learn everything you need to know about UK taxes in relevance to offshore companies and trusts. It will teach you all kinds of things your accountant isn't going to tell you! Also, learn great ways to SAVE MONEY by using offshore companies!
This book is very thorough, and if you have a genuine interest in offshore companies or are already in the business...it wouldn't be a bad idea to read this book.
As a complete idiot when it comes to taxes, I greatly appreciated Lee Hadnum's simple breakdown of UK tax law and how I can save a ton of money through an offshore company. I've often been intimidated whenever someone tries to explain the system to me, but I came away from this book with a real understanding of not just how to set up an offshore company, but specifically what kind is right for me, what pitfalls to avoid, and how to make the most of it (for me, the section on double tax treaties was enough to justify my purchase of this book).
Best of all, Hadnum covers the Anti-Avoidance rules that just went into effect this year, so even if you have an offshore company, there's a lot of new information to pass along. If you're afraid of being overwhelmed by complicated laws and codes, but want to see if offshore companies (or trusts) are right for you, this book is a great investment.