If you are serious about Protecting and Increasing either your Personal or your Business Wealth, you need seriously consider the available offshore strategies!
WHY would I Invest or Structure my Wealth Offshore?
Offshore structuring offers a range of opportunities to High Net Worth Individuals, Limited Companies, Investment Companies, Growing businesses, and Trusts, especially for purposes of minimising tax liabilities, reducing risk, and to grow and maximise the potential of a Business.
Many well known, recognised and reputable International Companies are incorporated in the Channel Islands or have a Channel Islands element/presence. A number of Companies listed on the London Stock Exchange, the Alternative Investment Market or other Recognised Stock Exchanges have their Incorporation in either Guernsey or Jersey.
Statistics have proven these Islands have contributed significantly to the UK economy during the financial crisis. Together, they have provided net financing to UK banks of $332.5 billion which represented deposits from their Guernsey and Jersey subsidiaries made available to their head offices in the UK. On the contrary only £2 billion in Tax per annum is lost to these Islands from the UK according to a report commissioned by the treasury.
The Islands offer a first class infrastructure, stable economy, tax benefits, a transparent, efficient and proper regulated financial services regime, modern laws and legal systems, close proximity to Europe and operation in Greenwich Meantime Zones . They are a great place for business. The following are a number of advantages that offshore jurisdictions offer:
Offshore jurisdictions are often low-tax or no-tax areas for both Individuals and Companies, and although you might not be in these jurisdictions, your assets, business or investments could be owned by an offshore structure, managed offshore while your business is conducted and operated globally. With Expert advice on how to structure and manage Your Wealth and Your Business Assets, you could reduce your total tax liability considerably.
For instance, no stamp duty land tax is payable on the sale of UK property where the UK property is owned by an offshore company and the shares of the company are sold. It can provide the seller with leverage to negotiate a better sale price. There are also no capital gains taxes or inheritance taxes.
Through correct structuring you can also pay less Corporation Tax!
All seasoned and serious Investors and Business Owners understand the concept of Risk Reduction through Diversification. Offshore jurisdictions are perfectly geared for Risk Management as they give you access to almost all products across the globe. Secondly, the mere fact you are spreading your wealth and assets across to a second country reduces your risk.
This benefit ties in with one and two above as there are various ways in which you can improve your tax efficiency and reduce risk specifically on Property. As it is so frequently used, we’ve listed it separately here. Offshore Trusts are great vehicles for asset protection against unforeseen circumstances. They can ensure family wealth continuation and be used to restrict or control the distribution of assets and funds within the Trust to beneficiaries.
4. Access to International Finance
Offshore jurisdictions offer a really wide range of Funding and Finance options. From Private Equity, Corporate Banking, Capital markets, all the way through to Personal Wealth and Asset Management with access to Discretionary Asset Managers and Professional Investors subject to legal requirements. Due to the high concentration of highly reputable Financial Institutions, Firms and Banks, it is relatively easier to find Access to International Finance in whichever currency and form your require. The Offshore Jurisdictions of Guernsey and Jersey play host each to approximately 50 International Banks with head offices in the UK, Switzerland, France, Canada, Germany, Netherlands, USA and South Africa.
Banking deposits in Guernsey currently stands £117 billion, funds under management at more than £224 billion and more than £300 billion worth of assets under Trust management. In the insurance sector there are gross assets of £21 billion. Banking deposits in Jersey stand at £166 billion, funds under management at £176 billion and Funds under investment management at £20 billion. Trust assets under management are estimated to exceed £200 billion.
Many offshore jurisdictions offer Exceptional Privacy Laws, which may be of great value, especially if strict confidentiality is required. Confidentiality is obtained through the appointment of nominee shareholders by beneficial shareholders who declare to act in accordance with the instructions of the beneficial shareholder. Expert Trustees and Trust Management is also vital.
