It is often said that the UK’s current anti-avoidance rules for “offshore” structures are inconsistent with EU law, and it comes as no surprise that Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.... More have published a consultation document proposing certain reforms to these rules.
The key message is that genuine economic endeavours carried on overseas will no longer be caught the relevant anti-avoidance provisions, but that the rules will continue largely unchanged where there is no commercial reason for a non-UK structure to be in place. This all seems very sensible, and should help to make the UK a more attractive place to do business.
More specifically, it should provide a better foundation for UK resident entrepreneurs looking to extend operations overseas, and it should also offer significant opportunities for non-UK domiciled individuals based in the UK. These groups in particular should review their business structures prior to the advent of these rules from 6 April 2013. Please contact us for more details.