The UK is genuinely trying to attract foreign investment back to the country. One of the main ways in which it is looking to do this is by a reduction in corporation tax. Many persons when looking to set-up an offshore company consider corporation tax as one of their numerous considerations. The UK recognized that it was losing out on a lot of revenue through corporate formation in countries such as Ireland and Luxembourg and has planned to cut its corporation tax to just 21% by April 2014. Whilst this is still higher than Ireland it does make the UK the lowest rate of any major western economy significantly lower than the US, France and Germany.
Other benefits of forming a company in the UK include;
- UK tax exemptions for foreign dividends and capital gains from substantial shareholders
- The UK has one of the widest networks of double tax treaties with over 120 currently in force and others under negotiation
- Absence of withholding taxation on dividends paid to offshore companies or trusts
- Generous audit exemptions
- Non minimum paid up share capital
- No capital duty
- Flexible company law
- Highly respectable corporate image
- EU but non-UK nationals can use UK companies to override domestic anti-avoidance legislation under Community Law principles
The UK has recovered well from recent global financial concerns and by retaining its National currency has not tied its fate into many countries in the EU like many of its major counterparts have done. London is still considered one of the world’s largest financial centres and the UK’s unwritten constitution means that law develops from practice which has distinct advantages when it comes to flexibility. Please do not hesitate to contact us if you would like more information regarding opening a UK offshore company.