The joint venture created under PAHALAW’s initiative in promoting international trust and insurance related services to the UK’s non domiciles whose tax exempt treatment (income tax – capital gains and inheritance tax) shall be affected with the upcoming tax changes taking effect as of 06/04/2017 has been put into motion upon completion of the first business trip realized between 15/02-21/02/2017.
Both companies were duly represented in the scheduled meetings via their Company’s directors and had the chance to reconcile with their affiliated partners on the credibility and enforceability of the proposed package solution prior to meeting with prestigious tax advisory and accounting firms specializing on asset and tax planning for the UK non-doms.
PAHALAW and TITANUS WEALTH PLANNING managed to touch base via this first campaign trip to London where the mission was to get a practical insight of the market’s parameters as well as explore the possibility of creating business collaborations with UK expert service providers in accommodating their end clients with the team’s proposed package solution.
In a nutshell, clients who were paying tax to the HMRC for their worldwide assets on the remittance basis (up to £90,000) shall be now called to pay on the arising basis of taxation which may impose severe tax implications on all three layers of taxation. In order to shelter those assets from UK taxation our solution will generally include the incorporation of a UK holding company to hold the clients’ UK and worldwide assets and then set up a Cyprus International Trust (CIT) to hold the shares of the UKCO on trust via a Cyprus Corporate Trustee to avoid capital gains and inheritance tax charges. The solution may be optimized via the purchase of an insurance wrapper with the trust’s funds in order to avoid capital gains tax for UK immovable properties, for investment purposes and other inheritance tax benefits when conveying assets to third parties.
Evidently PAHALAW is now entering into a partnership with Kounnis & Partners Ltd, one of the biggest tax and accounting firms of the Greek – Cypriot community residing in the UK and is exploring possible collaborations with other selected firms specializing in the field. PAHALAW shall be visiting the UK post April 2017 in enchanting its business campaign and in building bridges with key players of the industry for offering trust related services to the affected non-doms who shall be deemed domiciles for taxation purposes.
For more information and particulars on our teams’ proposed business solution on asset and tax planning for UK non-doms please send us an e-mail at [email protected]