Investing In The UK Through An Offshore Company To Avoid UK Tax

Capital Gains Tax Holding UK investment via an offshore company would look at first glance to be a good way of avoiding UK capital gains tax. As the company is non UK resident,and provided the assets aren't used for the purpose of a UK trade they will be exempt from UK capital gains tax (or more correctly corporation tax on the capital gain).

Note though that this tax exemption only applies if the company retains the cash until the shareholder is non UK resident or if the cash is retained overseas. Any extraction of the proceeds would be taxed to the extent that they were remitted to the UK. So whether a simple dividend is paid or if the company is liquidated and a capital distribution is paid the cash would need to be retained offshore. If you wanted to enjoy the proceeds in the UK you'd need to think about methods of remitting the proceeds with minimal UK tax implications.

A big problem with using an offshore company is in ensuring it's controlled from overseas. If it was controlled from the UK it would be UK resident and as such taxed in full on any capital gains realised. If the company owns UK assets it makes it more difficult to avoid the company being classed as UK resident.

Inheritance taxUsing an offshore company is a big advantage for inheritance tax purposes, as it converts a UK asset into an overseas asset. As non UK domiciliaries are not subject to Inheritance tax on overseas assets they can then avoid tax on the UK property owned by the offshore company. One point to note here is that it's important that the company shares pass on registration. They will then be classed as located where the share register is - which if this is outside the UK will ensure that the shares are excluded property.

Income taxA directly owned foreign holding company can at the most only achieve only a a partial avoidance of UK tax. Income tax, unlike capital gains tax is still taxed on UK source income. Therefore even if an offshore company is used, UK tax will still be charged on UK income.

However there are benefits to be obtained from using an offshore company. For example there can be a saving of higher rate tax as non resident companies are subject to the lower or basic rate of tax in respect of UK source income. Note though that you can obtain some income (eg UK bank interest) free of UK tax. This is because tax on this income is restricted to tax deducted at source if the recipient is a non resident.

SummaryAn offshore company investing in the UK can look to achieve the following tax benefits:

• Avoidance of capital gains tax
• Avoidance of inheritance tax
• Partial avoidance of income tax

Anti avoidance rulesAside from the company residence position - which is always an issue where you have an offshore company with UK shareholders there are also the anti avoidance provisions to consider.

Note that there is also the related issue that if an individual exercises control over the company and makes it UK resident there is a risk that he may be a shadow director and any benefits provided to him (or his family) from the company would be charged to income tax.

The main anti avoidance provision that applies to income is S739. Although there is an exemption for non UK domiciliaries this does not apply to the company's UK income.

Therefore if the offshore company had UK investment income this provision would deem the income of the company to be that of the person establishing/transferring to the company originally.

Another useful point to note is that S739 applies to any foreign registered company.

When can the anti avoidance rules be avoidedOne is where the UK individual buys a company that already has the UK investments in it. Provided he doesn't inject any further assets to the company he shouldn't be within the scope of the legislation (as he's not made a transfer of assets resulting in income accruing to the company).

Secondly there is the motive defence which applies where the transfer was not for the purposes of avoiding UK tax, and was for a wholly commercial purpose. One case where this is more easily satisfied is where a non domiciliary established the company before coming to the UK.

When can the offshore non resident company be used as a tax shelter for UK investments?It can be used to avoid UK Inheritance tax It can be used to avoid UK tax on any capital gain It can be used as a partial shelter for UK income if S739 is avoided in one of the above ways.

However any extraction of the income or proceeds from the company to the UK would be subject to UK tax. Therefore ideally income/proceeds should be retained overseas.

Lee J Hadnum is a rarity among tax advisers having both legal & chartered accountancy qualifications. After qualifying as a prize winner in the Institute of Chartered Accountants entrance exams, he went on to become a Chartered Tax Adviser.

He previously ran his own his own tax consulting firm, and has written a number of tax books as well as editing the popular tax planning website www.wealthprotectionreport.co.uk.

For a limited time, Lee is offering a Free report on Offshore Teleworking from his Offshore Tax Site wealthprotectionreport.co.uk Wealth Protection Report offers a wide variety of information on tax matters including, Capital Gains Tax, Inheritance Tax and UK Emigration.

What Small, Medium and Large Cap Stocks Mean To You

Stocks can be classified in terms of their size, small, medium and large cap stocks. Capitalization can be referred to as the market value of the company. We derived the market value of a company by multiplying market price of stock by the number of outstanding shares.

Large cap stocks refers to stocks of large companies with considerable earnings and large amount of common stocks.
Large cap stocks refers to companies that are listed on the Dow Jones Industrial Average and S&P 500 index.
Examples of such companies include IBM, Intel and Microsoft.
Large cap companies have a market capitalization of more than $5 billion Large cap stocks are often overpriced and over speculated.
These companies usually pay higher dividend, the prices of stock are generally less volatile and the prices of these stocks have less growth rate. This is of course with the exception of internet companies like Google who is in an industry which is extremely volatile.

Medium cap companies have a market capitalization of $1 billion to $5 billion Medium cap companies usually contain a lot of potential and often overlooked my many investors.

Small cap stocks refer to stocks of small companies with a market capitalisation of less than $1 billion.
Small cap companies are new companies who are just starting out on being listed on the stock market and generally tend to have a faster growth rate but also can be a lot riskier. They tend not to pay dividend but have a faster growing rate.

As one goes up the capitalization chart, prices of stocks will be higher and the risk will be lower. Small cap stocks > Medium cap stocks > Large cap stocks

A risk adverse investor will generally spread the investment across the three cap of stocks, small, medium and large cap to reduce the risks. If you expect higher returns and willing to take more risk, the best bet would to be investing in small and medium cap stocks. The safest bet is definitely the medium cap companies which have huge potential for growth and moderate risk levels.

ETF funds that track the performance / index of all small, medium and or cap companies might be of interest to you. An example for an index fund that tracks the performance of large cap companies is SPY. An example for medium cap companies is MDY and for small cap companies is IWM. Due to the popularity of such index funds, the index fund companies have been reported to charge very high rates. With the popularity of ETF funds, these fund management companies are increasing their management fees for ETF funds. Spend some tie researching at moneycentral.msn.com and you will be able to find other ETF fund companies other than that of SPY, MDY and IWM that offer significantly lower fund management rates.

More articles available at http://bewarrenbuffett.com

http://www.bewarrenbuffett.com

Deer Farms For Sale

When you are interested in nontraditional farming, looking into deer farms for sale should be your first step. Deer farms are for people who raise deer for commercial purposes. The deer graze on the farm land during development and are then sold as livestock or for use in hunting areas. Venison used to be considered meat only eaten by the hardy hunter. But the focus on healthy eating has resulted in increased interest in venison, which is lean meat. In addition, deer farms raise trophy deer that are sold for hunting purposes. Deer farms can also be used to raise elk.

If you are considering investigating deer farms for sale, begin by determining your primary reason for getting involved in deer farming. The main reasons for choosing deer farming include for investment purposes, expansion of current farming operations, or as a hobby farm. People who already raise cattle or other livestock are good candidates for deer farming. They already understand the requirements in terms of time, people and money. Considering the many deer properties for sale it is also a good option for people who wish to invest in an interesting hobby farm while continuing to work a full or part time job.

Before deciding to buy a deer farm, there are several considerations to take into account. First make sure you understand your states wildlife rules concerning deer farming. Also, have a clear knowledge of the kinds of deer allowed to be farmed. It doesnt make sense to plan on raising exotic deer if only native deer farming is permitted. You have to understand the rules concerning land and fencing requirements in the area where you plan on searching for deer farms. In addition, make sure you are clear about the market for venison or trophy deer. If you have the farm experience, the money, and a good understanding of the rules related to deer farming, your chances of success are greatly increased.

There are multiple ways to earn money after purchasing a deer farm. You can offer hunting services by allowing hunters to purchase hunting rights. You can rent grazing lands to other deer farmers. Once you begin farming, as a deer farm owner you can use your farm to teach others about farming practices or farm design. Of course, most revenue will be produced from the sale of deer meat and deer by-products.

Once you choose a deer farm, you are able to market the many different products related to deer. These include trophy deer, deer meat, fawns for new stock, meat by-products that can be processed into sausage or jerky, antlers, hides, and urine for scent camouflage. One of the attractions of deer farming is the large variety of ways to generate income once the farm is operational.

Deer farms for sale include land only, or land and deer combinations. The more well developed the farming operation, the more expensive the price naturally. The cost of starting a deer farm on vacant land can vary wildly. You must consider the per acre price, fencing, licensing, farm buildings and stock. You can start slowly and expand your operation as time and money permits. But you should have an idea if you plan on taking this approach before buying a deer ranch or farm. This is so you purchase land in an area that allows for expanded operations.

Deer farming can be a fun and interesting business or hobby if you do your homework first.

Mark Williams is a licensed Realtor that specializes in farms of all kinds in Western Kentucky. If you're looking for that special hunting or farming tract go to Kentucky Land and Hunting Properties

E-Currency Exchange: 4 Great Income Streams and Counting

This article provides a brief overview of the 4 sources of income we can take advantage of as a participant in the e-currency exchange trading system.

Specifically, I am refering to the e-currency exchange program through DXinOne. DXinOne is by far the leader in facilitating e-currency conversions. The fees charged to account for these transactions is how DXinOne makes money. They are in essence a clearing house.

So how do I make money in this? The first and most important income source is the Portfolio. The first thing you will want to do is open an account and start building a portfolio. It does not cost anything to open an account. Fund the account with as little as $25 and start building your portfolio. As you progress you will be able to use leverage to increase the overall value of the portfolio. It is not uncommon to see portfolio growth of 20 to 40% per month. This is accomplished by combining the daily profits and the leverage to add to your portfolio. The average daily profits on your portfolio will range from about .15% to .35% depending on the supply and demand in the system.

The second source of income in the e-currency exchange program is to become qualified as a Merchant. Don't get excited, you aren't selling anything. Merchant is just a term given to signify those that have qualified to participate in the actual e-currency exchange process. Thousands of times each day there exists the need to convert from one e-currency to another or e-currency to hard cash etc. This is where the Merchants come in. The Merchants receive a fee of 4 to 14% for making funds available to make these conversion transactions possible. To qualify as a Merchant you must have a portfolio value of at least $5,000 and you have had a DXinOne account for at least 90 days.

The third source of income is the P4 Program (Pre-Paid Profits Program). This program provides non merchants the ability to earn a per transaction fee for exchanging with active merchants. Merchants need liquidity to perform their functions and are willing to pay a fee for this liquidity. The fee paid to the non merchant ranges from 5 to 7% of the transaction. Caution: I have seen a lot of advertising boasting the P4 Program as "Huge instant profits" and "You get paid first" etc. Unfortunately, you do not have the whole picture. The rest of the picture is 2 part. The first is, when you have completed a transaction you will have to exchange those funds in order to do anything with them. This exchange will cost you upwards of 3%, so the real returns are cut in half or so. The second part of the picture is the reality of the time required to perform the e-currency exchange process. As of the writing of this article the process is extraordinarily long. Expect the process to take 2 weeks or longer depending on how the system is flowing and how much you are trying to exchange. So maybe the truth is 2 to 4% return every 3 weeks. Still not too bad for passive income.

The fourth source of income is for webmasters. This is called the AdsExposed Program where advertising is placed on your website. You will receive pay per click revenue from those ads.

So now you have the 4 sources of income currently being offered by DXinOne. The great thing is DXinOne is a progressive organization. They have many other programs and services in the works that will be launched as time goes by.

Merv Thompson Author and operator of http://www.futures- brokers-review.com a website providing tools, resources and reviews for todays trader.

Get detailed information on e-currency trading at e-Currency Exchange

Forex-Trading Foreign Exchange Using Risk Management Tools

Trading in the foreign exchange (FOREX) market offers both tremendous profits and substantial risks, as does many business opportunities. Have you ever wondered how you could trade the FOREX while controlling and/or reducing the risks involved? Has the fear of losing in a big way kept you from entering this fast-growing market? This article explains several steps you as a trader can take to better protect your investment in this dynamic marketplace.

For starters, understand that your long-term survival and ultimate success necessarily depend on a cautious approach to the market from the start. Among other things, this means that the percentage of margin put at risk in each trade must be reasonable. Within reason, limit the amount of money put at risk. Naturally, what is reasonable to one person may have a different meaning to the next person.

Regardless of the amount of available margin in the account of the investor, the percentage traded must not be so great as to significantly deplete the trading resources if a trade turns unfavorable. Many successful traders refuse to exceed one percent of the tradable margin when executing their orders, while others may go high as ten percent. Putting an amount higher than ten percent at risk would probably qualify as aggressive trading.

Because the amount of leverage applied to the trade can have a profound impact on the outcome, it is better to trade at a level of leverage that matches your trading experience, proficiency and style. Beginning traders may not fully understand that leverage is a double-edged sword, capable of enhancing profits as well as losses. A conservative application of leverage should certainly be the practice of every new trader.

As the proficiency and confidence levels grow, a higher level of leverage may be utilized. Many brokers offer online platforms which allow the trader to pre-select the amount of leverage sought. Depending on the broker, the leverage allowed may go as high 400:1. The average maximum leverage allowed by most online brokers is closer to 100:1.

Consider utilizing the built-in safety features such as the stop loss, trailing stop and limit to help control the risks. A stop loss is a feature offered by virtually all online trading platforms. It allows you to predetermine at which price level your trade will automatically closed if the market moves unfavorably against you. News traders and day traders will typically utilize a smaller stop loss as opposed to the wider stop favored by long-term traders whose positions may be open for several days or longer. A trailing stop will allow the stop loss to be moved in the direction of your profit and has the net effect of incrementally bagging your profits as the price movement continues to move favorably.

The limit provides a capping of the profits much in the same way that the stop loss minimizes the losses. Similarly, it automatically shuts the trade down once the predetermine threshold is reached by the moving price. It is quite advantageous in circumstances where the market experiences a major whipsaw or in the event of a disconnection from the brokers server or the traders internet service provider while the trade order is open.

The occasional loss aside, trading does not have to be a traumatic experience. As the saying goes, nothing ventured, nothing gained. Still, your trades must be properly planned, executed and managed. Utilizing the safety tools designed for the protection of your trading positions is a smart way to ensure your longevity in a business where so many fall by the wayside as a result of failing to understand and properly manage the risks.

Sandy Robinson, J.D.
Copyright 2007

If you are ready to change your future by stepping into the exciting world of trading FOREX, go to http://www.winningtradersassociation.com for more information. Author Sandy Robinson, J.D. is part of the Winning Traders Association, an educational organization founded by John Beiler, President. The organization consists of a network of committed trainers and motivated traders willing to provide support to those interested in trading foreign exchange. Many of the members work from home.

FOREX Trading 101

Welcome to the exciting and often very profitable world of foreign exchange trading or FOREX for short. Forex trading is the trading of different foreign currencies against one another, taking advantage of their ever fluctuating values to make very nice profits.

Forex trading, or currency trading, used to be out of the reach of the everyday investor until recent technological advancements took Forex out of the hands of large banks and institutional traders, and put it right in front of anyone with a computer and internet connection. Now there are dozens of Forex trading platforms available from a wide selection of brokers. Now anyone can learn to make money trading the currency market!

Although the major focus of the investment world appears to be on stocks and bonds, the currency market is the oldest and largest financial market in the world. The FOREX is a world-wide market, therefore, it is open 24 hours a day, 7 days a week. This eliminates the closing/opening gaps you see with traditional stocks ever morning. The Forex market trades approximately $1.2 trillion every day, making it a very liquid market, you'll never have a problem filling your buy or sell orders.

Forex trading is done with pairs, that is either buying or selling one currency against another currency. You profit from Forex trading when you take a position in a currency that you appreciates against the currency it is paired against. The great majority of daily Forex trading involves four major currency pairs. Currency trading usually involves the British Pound against the US dollar, the Euro against the US dollar, the US dollar against the Japanese Yen, and the US dollar against the Swiss Franc.

These four pairs are displayed on the FOREX as: GBP/USD, EUR/USD, USD/JPY, USD/CHF.

One major benefit of trading the Forex market, is leverage. Because of the liquidity of the Forex, most brokers offer the option to trade on margin with a leverage ratio as might as 400! Providing you with the opportunity to invest with a much small amount of capital and still pull in substantial profits.

The best way to get a grip on the FOREX is to educate yourself as much as possible on FOREX basics. Check out http://investing4dummies.googlepages.com for more information on currency trading and learn how to trade like a pro!

Invest in Stocks

INVEST IN STOCKS AND GET HANDY FUTURE

A risk cell, comprising of bulls, bears, and a competitive market with tones of manipulative elements, have been unearthed with the passage of time. The stock market as commonly said is the market, which involves high risks on high amounts. It purely involves playing with the difficulties of the shares and commodities of the stock market and making or loosing money accordingly. It is a tough decision to make to invest in stock, as there is a high risk involved of loosing the hard-earned money. Every single second counts in the Share Market when it comes to the change in prices of the stocks.

Stock is nothing but a part of assets of other company being owned by other person in return of the money. This money acts as an asset for the company to be used in further functioning of the company on part of the company accounts and serves as an investment for the stakeholder who invests his hard earned saving to earn better profits for him. The profits of the company are shared with the people who invest in them. Stock, as such, is not as simple as it seems. It involves various categories involving shares, commodities, mutual funds, and a lot more. It can be stated that stock is a vehicle of choice for those who agree to bear all the risks involved and try to stock better monetary results for them.

Well, investing in stocks is not a childs play. It demands good grip of knowledge about the season chance in the market along with an expertise comments. The share market expertises are generally the brokers who are involved in the trading of stocks. Invests in stock relate to the sale and purchase of stock in the share market. These brokers are the facilitators of change that helps to locate funds in the right direction to fetch maximum return and relocate the profits to squeeze more out of it. In return, of their services, a fair percentage of the invested amount is paid in order to motivate them to make the way clear for investment in stocks, known as brokerage. They act as a guiding manual for the investor in an unknown world of stock market.

The stock market has been uncovered with the passage of time due to improvement in technology along with the rearrangement of ideas of peoples minds. The shares play was generally associated with the bureaucrats, leaders and the crme of the society. It went to the common man with the advancement of technology to the ground level. Going to share market to trade seems to be the story of the medieval period. Times have changed, so the trends have. Now, a person sitting at home can operate in stock market as an active player. The brokers are available with their services and tips on cyber space itself. Cyber space, commonly known as information superhighway or internet has become the backbone of every market through out the world. It provides same services as a virtual presence of a person may offer. An investor may communicate to people, buy and sell stocks and may transfer the money from one place to another. All these functions can be carried out within fractions of seconds through internet.

The advantage of working on Internet lies in its high speed, along with the accomplishment of work without virtual presence of the particular person at the work place. It also offeres the huge ocean of information that supports the activity of the investor. However, its disadvantage lies in its incredibility and the uncertainty of the quality of the work offered.

As such, despite of the downsides and risks involved in investing in stocks, it is still charming and welcoming the investors to trade. In simple words, the facilities of online trading add to the glory and charm of the invests in stocks.

Get extensive information on online stock investing and get expert tips on how to invest in stocks.

5 Reasons Why Index Funds Should Be Part Of Every Portfolio

WHAT IS AN INDEX FUND? An index fund is a mutual fund that duplicates as closely as possible the performance of a stock market index or bond market index that it tracks. A few examples of indices are: S&P 500, Wilshire 5000, Russell 2000 and Dow Jones Industrial Average.

1) MUCH LOWER FEES AND EXPENSES. Who wouldn't want to save money on their investments? Because index mutual funds are passively managed, they charge lower fees resulting in some of the lowest expense ratios in the mutual fund market. Vanguard, one of the leading index fund providers, has an average expense ratio of 0.27% versus the market average for all mutual funds of 1.50%!

2) BETTER PERFORMANCE. Most non-index funds do not outperform their relative index. Only 35% of active fund managers beat their index [according to Ibbotson Associates]. Why not go directly to the index?

3) TAX EFFICIENT. For your taxable investments, you could have much lower capital gains tax due to less stock turnover - which will save you money on your taxes. Because the mutual fund is mirroring the investments in the index, the manager is trading much less - which means fewer capital gains or losses. Mutual funds with a high turnover ratio are hit with higher capital gains taxes in an up market, even if the investor didn't sell her/his mutual fund shares. For people that have a high investment income tax bill, this is especially important.

4) LESS STRESS. Index funds are usually easier to monitor and check performance. For example, if you invest in an S&P 500 index fund, you can easily check the Year-to-Date performance each week by just reading the front page of the New York Times Data Bank section on Sunday. Much easier than reading your statements, wouldn't you agree?

5) EASIER TO FIX YOUR ASSET ALLOCATION. You just finished your financial checkup and found that you are lacking small-cap value stocks. The easiest way to remedy this, assuming other characteristics meet your standards is to find an index fund of small-cap value stocks. A great website for index funds: www.indexfunds.com.

Galia Gichon, Founder of Down-to-Earth Finance, demystifies personal finance particularly to women through unbiased financial education. With over 14 years experience in financial services and an MBA in Finance, she does not manage money or sell investment products. You can subscribe to her weekly e-mail newsletter at DownToEarthFinance-On@zines.webvalence.com for smart tips to save more money and independent advice about mutual funds and retirement. She can be reached at 212.734.0433 and http://www.downtoearthfinance.com

Written by Galia Gichon
DOWN-TO-EARTH FINANCE
Copyright 2007 Down to Earth Finance, LLC