Let your money do the walking

Article Abstract:

International offshore financial services offer numerous opportunities for UK citizens interested in reducing their tax liabilities. The most obvious benefits are available to non-resident UK citizens, who aside from being exempt from taxation on income realized outside the UK, are also able to use tax haven planning without fearing legal repercussions. However, for citizens resident in the UK, tax haven planning is much more problematic given the array of anti-avoidance legislation that have been passed since the government began cracking down on tax avoidance strategies using tax havens. Nevertheless, there are ways of diluting the impact of these new tax avoidance regulations without altering domicile. These include the setting up of special offshore trusts for children and relatives, the replacement of UK trustees by non-UK trustees, and investment in financial products offered by institutions based in tax havens.

DEPOSITORY INSTITUTIONS, Foreign bank & branches & agencies, Methods, Financial services industry, Financial services, Tax planning, Tax havens, Foreign banks

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Tactical aspects of rebasing: share valuations

Article Abstract:

Section 150 of the Capital Gains Tax Act 1979 provides the legal basis for the procedures used by the Shares Valuation Division of the Inland Revenue in calculating the capital gains tax due when shares are disposed of. Since 1989, the calculation of capital gains tax on sales of shares has been done by taking three factors into consideration. These are the shares' valuation as of Mar 1982, the 1985 indexation guidelines for these Mar 1992 values, and the 1988 rebasing standards for share valuations. The impact of the rebasing and indexation regulations are particularly significant since they translate into a marginal tax savings rate that can reach as high as 60%. Companies involved in negotiations with the Inland Revenue on sales of shares made since 1989 therefore need to understand the provisions of Section 150, as well as the regulations that govern the indexation and rebasing of share valuations.

Securities, Valuation

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Capital gains - smoothing out the humps

Article Abstract:

Several amendments to Great Britain's Capital Gains Tax are proposed. A separate annual exemption should be available to married women. The time limit for losses should be extended from three months after the end of the tax year to 12 months. Commercial woodlands should not be excluded from the system of capital gains tax relief. The exempt limits on the disposal of chattel should be increased from the figure set in 1983.

Great Britain

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