The UK remains a popular jurisdiction for inward investors and we are pleased to offer straightforward advice on the structuring of new business activity in the UK.

Why the UK?

"competitive rates of corporation tax"

The UK now has competitive rates of corporation tax again and initiatives such as the 10% rate for “patent box” companies is designed to rival similar regimes in Europe and help the UK secure more technology-based investment. However, clients will also want to understand any potential effect on the wider overseas group and key personnel spending time in the UK. We work with clients to understand what form of presence they need in the UK and help ensure that none of their overseas businesses inadvertently create a taxable presence in the UK by virtue of their interaction with the UK.

Key points to setting up in the UK

Companies operating in the UK, if set up and managed correctly, can enjoy low tax costs and relatively simple administration. Some of the key features of the UK tax regime for inward investors include:

"low tax costs and relatively simple administration"

• a headline rate of corporation tax of 26% falling by 1% annually to 23% by 2014, which will give the UK the lowest rate of the G7
  
• a lower rate of 20% for small trading companies (this is not available to investment companies and is not normally available to members of groups or where the owners have a number of business interests)
  
• no withholding tax on dividends paid by UK companies
  
• overseas dividends received by a UK company are generally not taxable in the UK, subject to limited exceptions where tax avoidance arrangements are in place
  
• an extensive network of double taxation treaties and European Union directives mean that withholding taxes on outbound or inbound withholding taxes on interest and royalties can often be minimised or eliminated completely
  
• trading groups can sell UK and global trading subsidiaries on a tax free basis using what is called the Substantial Shareholding Exemption. These profits can then be repatriated overseas via a dividend without a withholding tax or UK capital gains tax being suffered.

Our Service

Our service includes arranging corporate formation and secretarial services as well as a complete set of tax services encompassing corporation tax, payroll taxes and VAT.

For details of our other Tax Advisory services please click here