Offshore companies

Planning for high net worth private clients with international ties who are UK resident has often involved the use of non-UK resident companies, whether owned directly by individuals or through an offshore trust/company structure.

Potential advantages of using a company include:

1. •

   Privacy and anonymity: Offshore companies can offer a layer of privacy by not disclosing the ultimate beneficial owner publicly. However, UK law now requires registration of beneficial owners of entities which hold UK land

2. •

   Asset protection: Holding assets through a foreign company can shield them from local creditors or legal claims, depending on the jurisdiction

3. •

   Tax efficiency: In some cases, offshore companies may benefit from lower corporate tax rates or deferral of UK taxes, especially if the company is not deemed to have a UK permanent establishment

4. •

   Stamp duty land tax (SDLT) planning: in the case of a company which holds UK residential property, there is no SDLT charge on acquisition of the shares of the company, whereas there would be a significant SDLT charge where a company acquires the property directly

However, as a general rule, directly-owned offshore