Forex tax haven question

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Old Oct 15, 2004, 2:11pm   #1
 
Ross-G's Avatar
Joined Oct 2004
Forex tax haven question

Hello everybody
I have researched about the tax issues regarding forex trading;
(eg I pay income tax not CGT because of frequency of my trades)

what I was wondering was...
If I leave the UK in new tax year and become resident in Tax haven e.g.Antigua, Tallokiki, Monaco and continue to trade using PCs and online brokers , like most of you,
(still retaining Brit citizenship), does the direct access aspect of Forex trading have any bearing
on whether I have to pay tax or not (e.g. to UK ). Can't get clarity on this.

Would really appreciate any info!
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Old Oct 15, 2004, 3:19pm   #2
 
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Joined Jan 2004
You dont need to leave the country.

You can create an offshore company. And trade from here. You wont pay tax on profits
as its not your money (its the companies money).

After a few years you can move to an offshore haven and take your money out of the company and spend it. But you might not be able to move back to UK for a years after...

Note im not a Tax expert so the above could be all wrong, do your own research.
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Old Oct 15, 2004, 4:05pm   #3
 
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Joined May 2004
Donaldduke has hit the nail on the head. 'Offshoring' yourself isn't the preserve of large companies and, frankly, it makes sense for anybody that generates more than a few grand a year in tax.

Check out http://www.offshoreconsultants.co.uk

It's surpisingly straightforward to get a company incorporated in, for example, the Caymen Islands (big windy hurricane thingy permitting) alongside a bank account in Denmark (including Cashpoint card) with all the Directors in the UK. None of these countries, plus many others, have any formal jursidiction arrangements with each other, so you get the choice to use Gordon Brown's lost revenue to buy the Aston Martin DB9 you (possibly) deserve.
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Old Aug 11, 2005, 8:34pm   #4
 
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Joined Aug 2005
Quote:
Originally Posted by donaldduke
You dont need to leave the country.

You can create an offshore company. And trade from here. You wont pay tax on profits
as its not your money (its the companies money).

After a few years you can move to an offshore haven and take your money out of the company and spend it. But you might not be able to move back to UK for a years after...

Note im not a Tax expert so the above could be all wrong, do your own research.
yep those are some very good ideas and i believe they are all legal

starter of this thread should research this point and talk to a professional tax accountant
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Old Aug 11, 2005, 9:18pm   #5
 
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Joined Feb 2005
although if you do want to move to warmer climes, dubai and monaco are two nice sunny places i've visited and know of off the top of my head that have zero income tax rates.

but why move if you can have an offshore setup with no tax anyway. then you can live anywhere.
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Old Aug 11, 2005, 9:21pm   #6
 
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Joined Feb 2005
oh yes. you can move anywhere and tell the Inland Revenue you are no longer resident, but if you move back to the UK within 12 months of declaring non-residency, you are liable for UK tax on all earnings from whenever you made the declaration.

Outside of the 12 months, you are free of uk tax obligations.
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Old Mar 3, 2007, 4:25am   #7
 
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Quote:
Originally Posted by Arbitrageur
why move if you can have an offshore setup with no tax anyway. then you can live anywhere.
Are you guys sure about this?!?! I mean, if it was easy as opening up an offshore company with an associated offshore bank, wouldn't everyone be doing this? Why would people even pay tax?!?!
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Old Mar 3, 2007, 9:58pm   #8
Joined Oct 2003
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Originally Posted by fx_geezer
Are you guys sure about this?!?! I mean, if it was easy as opening up an offshore company with an associated offshore bank, wouldn't everyone be doing this? Why would people even pay tax?!?!
If you pay yourself, you will be taxed on that as a UK resident, but if you want to re-invest your profits, it is a good way to do this without taxman interference.

Note UK tax authorities have recently stopped companies from using a CFC (controlled foreign company) for tax avoidance. It is only a matter of time before they stop individuals doing the same thing.

Disclaimer: I may or may not know what I'm talking about. Please check it for yourself.
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