JOHNNY DOETHE LIFE WHISPERER

Can we still get 0% corporate tax in the UK thznks to Gibraltar?

anotherone

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anotheroneActive RecruitAuthor
Joined
Feb 2020
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295

#1

Not so long ago, I remember that directors owned a UK ltd and used a Gibraltar LTD to withdraw the profit.

REvenue => UK ltd => dividends, royalties => Gibraltar LTD
it was possible because Gibraltar didn't tax extraterritorial revenue of LTDs.

So UK directors used Gibraltar LTDs to lower their corporation tax of the UK ltd.
For example, if you have a website, you hire an attorney to create an agreement for your UK ltds to rent the use of trademarks and domain names to your Gibraltar LTD

So, now , I wonder if it is possible to use transferwise or Revolut for the Gibraltar LTD. I know Gibraltar pretty well. In Gibraltar, there is no real tax investigation. The local authorities never get into your accounts.

Now, Gibraltar and UK will include the beneficial owner KYC/AML but I don't know if it is a problem. do you think it is a problem?

For this to work on the UK side, do you need to appoint nominees in the UK?

Is it possible to open an EMI account for a gibraltar company?

James TurnerActive Recruit
Joined
Jun 2018
Messages
468

#2

The main issue here is that if you create an offshore company and you are a UK resident and a Director and hold the shares in the Gibraltar Company, the company will be classed as a Controlled Foreign Company (CFC) and the profits of the company will be taxable in the UK. The use of Nominee officers is insufficient to avoid this situation as you 'control' the nominee and are the UBO. It is certainly possible for a Gibraltar Company to open an EMI or banking internationally.

anotheroneActive RecruitAuthor
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Feb 2020
Messages
295

#3

James Turner said:

The main issue here is that if you create an offshore company and you are a UK resident and a Director and hold the shares in the Gibraltar Company, the company will be classed as a Controlled Foreign Company (CFC) and the profits of the company will be taxable in the UK. The use of Nominee officers is insufficient to avoid this situation as you 'control' the nominee and are the UBO. It is certainly possible for a Gibraltar Company to open an EMI or banking internationally.

great explanation

anotheroneActive RecruitAuthor
Joined
Feb 2020
Messages
295

#4

i understand that an EMI account would just help to fly under the radar of a Automated Exchange of information but anyways if I would get investigated by the HMRC, they would look at all those transfers and would calculate the corporate tax that is due on those transfers.

LuganeseNew Member
Joined
Dec 2019
Messages
46

#5

That would only work if you move to Gibraltar

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