We give you a brief insight and overview as to the reasons and motivation to go offshore. The benefits of doing business offshore will largely depend on your own personal situation although the motivation for individuals (particularly expats) and corporations to utilise offshore planning, funds and corporations are, among other reasons, driven mainly by the following:-

• Reduce tax through legitimate structures (and not tax evasion)
• Protect and enhance assets
• Maintain privacy and confidentiality
• Manage risk and
• Reduce costs

The principal uses of offshore companies are:

• Trading
• Investment
• Holding
• Financing
• Professional services or consultancy
• Patent, royalty and copyright holding
• Ship management and yacht owning
• Personal and corporate tax planning

In the menu above, we give you a list of some of the more popular jurisdictions in which to do business and, if you are contemplating company formation, why it is important to register a company in a more well regulated jurisdiction. You'll also find some useful information about the benefits of banking offshore and other related information.

There can be any number of reasons to bank offshore. Apart from security, confidentiality, and the banking practicalities for UK and non UK Nationals, the most common reason is taxation and the potential benefits enjoyed by the lower taxes in an offshore jurisdiction.

Depending on whether you are a UK or non-UK National and your own personal circumstances, banking offshore may provide you with any of the following advantages:

• Savings and Investments
  Interest is paid gross on savings and investments that are held offshore and you may pay a reduced amount or no UK income tax on income from those savings and investments, unless that income is transferred into the UK.
• UK Inheritance Tax
  Exposure to UK Inheritance Tax may also be reduced by transferring assets offshore. If investment property is involved, you may wish to purchase via an offshore company or trust.
• Income Tax Liability
  If you retain the capital offshore you only pay income tax on interest remitted into the UK but not on the capital.
• Capital Gains Tax
  If assets are held outside the UK, you may avoid UK capital gains tax on the sale of non-UK assets unless you transfer the value of these gains into the UK.

To find out what the potential benefits are, talking to your Accountant or Independent Financial Advisor and obtaining the appropriate advice should be your very first step. Another good starting point is the Inland Revenue as understanding the UK tax system is vital to ensuring you make the right decisions.

A Word of Advice...

Make sure that the jurisdiction you select is politically and economically stable. You should also ensure that the jurisdiction in which you choose to establish your banking business has a sound financial infrastructure and is appropriately supported by the professional services that you require.

Quite often, banks will question the jurisdiction in which your company and/or trust has been established to ensure it is reputable and well regulated and may or may not accept your business accordingly. Thus reputation, image and profile of the jurisdiction play a vitally important part.