increasing overseas assets and mobile workforces present complexities for tax and wealth management
International issues are paramount for many of our private clients – whether they are senior executives, employers, international investors or simply non UK domicile residents.
With today’s increasingly mobile workplace it is not unusual for executives to spend their working lives in a number of different countries.
Any move into or out of the UK presents complexities both for tax and national insurance and it is essential that such moves are planned to ensure that the tax due is minimal.
This also applies to foreign nationals who come to live in the UK. Such individuals are likely to be non UK domicile and special tax rules apply which can be very advantageous.
non UK domiciles
Domicile is determined at birth by the nationality of your father – although it can be changed when you reach 16 if you have established your home in another country.
Non domiciled people who come to work in the UK are not taxed on their overseas income if not remitted to the UK – which makes the UK an attractive destination for many wealthy international people.
However, there can be problems with inheritance tax for long term residents who are non UK domicile as it becomes relevant if 17 out of 20 years are spent here. Many non domiciles will seek help in establishing offshore structures to protect against the worst IHT situations.
UK nationals who work overseas will need help with the complexities of double tax treaties and minimising the taxation that they pay when their funds are repatriated.
Those who are resident in the UK for a few years (so called “mobile executives”) will need help in determining their tax residency and a host of social security issues.
Employers in the UK may also need advice on how to time and structure international secondments and short term employment arrangements to avoid the significant costs that can be incurred within a particular tax year.
We have particular experience in advising owners of property both within and outside the UK (please refer to our real estate sector experience).
We are founding members of MSI Global Alliance (www.msiglobal.org), an international alliance of independent legal and accounting firms, with 250 members in 100 countries.
Our staff are in frequent contact with MSI members overseas and often have had personal contact with them which facilitates strong and responsive working relationships.