The Tax Experts
You have probably seen a lot on the subject in the press with constant promises to "stamp out" tax planning as politicians make some rather strong comments on it. However, the truth is that the country makes massive amounts of revenue through tax planning. This is counter intuitive but the reasons why so many foreign businesses base themselves in the UK is because of a strong and fair legal system, a business-friendly environment and significant tax savings. These companies and individuals spend huge amounts of money here and employ hundreds of thousands of people who all pay PAYE.
If one of these three criteria above changed, they would leave in search of more appealing locations like Ireland where corporation tax currently rests at 12.5%. So, to change the landscape for these companies would actually hurt the UK economy and all politicians know this. This is why the "reforms" often have very little impact on the industry. In 2016 the Government is looking at cutting Corporation tax over the coming years to entice even more inward investment to the UK as taxation is a major obstacle to inward investment in any country.
Is this Legal?
As per the points on our Home page, all tax planning is legal, but the question is “Does it work?” as you do not want HMRC picking the planning apart at a future date and having to pay the tax in the end anyway.[/vc_column_text]
Does this work?
This particular piece of tax planning has been in use for 25 years now, which is more than enough time for HMRC to have picked it apart if that were possible. We also have the legal opinion supporting what we do from the country’s leading Tax Queen’s Counsel. The main method of tax planning we use is currently utilised by 15,000 clients from low level business people to celebrities and some of the largest companies in the UK.
It was seen in 2016 that Tony Blair, the former Labour Prime Minister, according to The Times, currently shelters his estimated £50 to £100 Million earned since leaving office in a tax structure. Also according to The Times, Osborne and Little, which is the specialist Wallpaper company owned in part by George Osborne (the former Tory Chancellor of the Exchequer) has not paid any corporation tax for the 7 years preceding 2016 despite paying dividends. The same newspaper also gives an example of where the same company may have mitigated its capital gains tax when it sold its London offices to a developer in 2004. There are many examples in the press if you wish to search for them.
These are just a few examples of successful tax planning used by prominent UK Politicians and the rich. The same laws they use to mitigate taxes are equally applicable to you too as UK citizens.
If you wish to know more on this, just call us and we will answer you questions. Call us now in 0845 052 3787 or email us on email@example.com.
What if the laws change in the future?
No one knows what will happen in the future and laws could change making our main tax planning method not work anymore. So what would that mean to you? It would not affect you. You would simply find a new method of tax planning but you would not have to pay the tax back as the laws inn the UK are only valid from the date, which they were made. Everything before that date is unaffected.
If you built a house 10 years ago and the building regulations change, you do not have to tear the building down as it was legal when you built it. This applies to all laws in the UK and the EU.