Offshore trusts

If you are resident but not domiciled in the UK, there are special rules relating to your overseas income and capital gains which mean that you are only taxed on the income and gains brought into the UK. This is known as being taxed "on the remittance basis".

From April 2008, if you have been resident in the UK for at least 7 out of the last 10 tax years, you will need to pay an annual levy of £30,000 if you wish to continue to be taxed on the remittance basis. The alternative is to pay UK tax on all your worldwide income and gains. These rules do not stop income or gains being taxed in your country of origin, but they are not taxed here unless brought here.

How we can help you

Offshore trusts are now largely only beneficial for tax purposes for people who are not domiciled in the UK. The partners of Collyer Bristow have a great deal of experience in advising offshore trustees on the UK tax implications of offshore trusts for resident non-domiciliaries.

We also, of course, advise the beneficiaries of such trusts on their rights and obligations under the trusts, the consequences of occupation of property owned by offshore trustees and all other aspects of offshore trust and tax planning.

For more information, see our pages Making a Will, Trusts, Foreign Assets and Domicile and Tax.

Additional information