Detailed Analysis: Tax Planning Using a UK Company Post-Brexit

Are you looking to navigate the post-Brexit corporate landscape with strategic precision and tax efficiency? Connect with our expert team for tailored advice and solutions that align with your business objectives. Discover the potential of UK corporate structures in achieving your global ambitions. Contact us today!

1. Key Attractions of the UK for Business and Tax Planning:

Non-Tax Haven Status: The UK’s positioning as a legitimate and reputable jurisdiction for business is a significant advantage. This status is beneficial for companies looking to avoid the stigma associated with tax haven countries.

Legal System: The UK’s legal system, particularly the Companies Act 2006, offers a robust and transparent framework for corporate governance, crucial for international investors and stakeholders.

Cost-Effectiveness: The cost of setting up a company in the UK remains relatively low. This is particularly advantageous for start-ups and SMEs looking to establish a presence in a reputable jurisdiction without substantial initial outlay.

Tax Treaty Network: The UK’s network of double taxation agreements is one of the most extensive globally. These treaties, listed on the HMRC website, facilitate cross-border trade by preventing double taxation of the same income in two different jurisdictions.

2.Impact of Brexit on Tax Planning:

Post-Brexit, the UK’s departure from the EU necessitates a revaluation of structures, particularly for businesses with significant EU operations. However, it opens opportunities for new trade agreements and tax treaties outside the EU framework.

3. Traditional and Contemporary UK Tax Structures:

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Navigating The Landscape Of 2024 Federal Tax Credits: A Guide For Tax Professionals

 As we move closer to 2024, it’s crucial for tax professionals and firms to start strategizing and planning for the upcoming federal tax credits. The landscape is ever-evolving, and being proactive is key to ensuring that your firm maximizes its benefits.

Why Plan Now?

Early planning provides ample time for due diligence, helping firms to:

Identify the most beneficial tax credits based on their specific financial situation.

Understand the implications and requirements of each tax credit.

Strategize on how to best utilize the credits for optimal tax savings.

 Tools & Resources

Ensure you have access to the latest tools and resources to navigate the complexities of federal tax credits. Stay updated with the IRS guidelines, and consider seeking advice from experts who specialize in this area.

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Time Sensitive California Tax Update

We wanted to provide you with an update regarding tax legislation recently passed that may affect you. 

If you are a shareholder, partner, or member of an S corporation, partnership, or LLC, you may be able to reduce your federal income tax liability. 

The Tax Cuts and Jobs Act reduced the amount of the state tax deduction individuals may claim on their federal tax return to a maximum of $10,000. This limitation caused significant tax increases to taxpayers living in high property and high state income tax states (such as California). 

To assist business owners who are recovering from the global pandemic, California recently passed Assembly Bill 150 (AB 150). This bill allows qualified S corporations, partnerships, or LLCs to pay tax on their individual, trust, or estate owners’ share of the entity’s qualified net income at the entity level. Furthermore, the bill also allows these owners to claim a credit for the tax paid on their California personal income tax return. The effect of this is the following: 

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Corporate Tax Executives And CFOs - Valuable Insight Of What Is To Come For Multinational Corporations

Recently, as I was reaching out to one of the many retired tax luminaries in Silicon Valley with an important question for him. I asked, “What advice would you give the rising new generation of tax executives and CFOs? His response is valuable; I hope you will pass this on to everyone you know in the tax and financial profession.

As the CEO of, I believe it is an indicator of what is to come in the future of the United States business.

Prior to reading this letter, for the record, many corporate tax executives call me by by nickname Kitty. Here is the letter received today that is an eye opener from a seasoned and now retired tax executive.

Dear Kitty,
It was very nice to speak with you this afternoon. A surprise to hear your “million dollar voice”.

Attached is the WSJ article “Companies Bring Profits Back To U.S.” from 6/21/2020 explaining that the $124 Billion in cash was brought back into the U.S. in Q1 and that $851 Billion in cash was repatriated in 2018. The article got its information from the Commerce Department and that information is probably underestimated by many times.

I have explained to friends and consumers in the U.S. who were buying iPhones, tools, electronics, clothes, fast food hamburgers, books, etc. from foreign affiliated sellers of those U.S. companies that revenue from those sales, and manufacturing and jobs went outside the U.S. But, with Trump’s lower tax for U.S. businesses, that trend is reversing. Now, U.S. companies want to generate U.S. revenue subject to the lower U.S. taxes, not foreign revenue. Additionally, there are now penalty taxes for continuing to generate revenue outside the U.S. In order to achieve these benefits, tax planning has changed from when I did it. These changes help the U.S. economy and return jobs to the U.S. and bring manufacturing back to the U.S. But more than ever, CFOs need tax people to plan, execute and achieve these benefits. See for a list of thousands of U.S. companies reshoring, a lot of household names.
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Tax Manager - Research And Planning (San Francisco, CA)

The top driver that keeps tax professionals in an organization longer is how they are treated by management. Our client has an extraordinary retention rate due to the fact they treat their tax team with a high degree of respect and support you in ways you rarely experience in companies.

TaxConnections has been retained by an investment group to locate a Tax Manager in San Francisco, CA. It is an opportunity of a lifetime for a tax professional with the requisite skills.

The Tax Manger will be responsible for assisting senior tax management with tax research and planning and all aspects of the tax compliance and forecasting for a very significant investment partnership and the related investment management entity. Individual must have a solid understanding of current tax laws including knowledge of investment partnership structures. Researching and communicating the tax consequences of current and proposed investments will be a part of the responsibilities of the successful candidate.

In addition, the position will require both the preparation and review of highly detailed complex Federal, California and multi-state income tax returns, foreign investment reporting implications, preparation of tax forecasts and researching complex tax issues.
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Charles Woodson- Year End Tax Planning

This has been a tumultuous year for taxes, with the tax reform that passed in late 2017 generally becoming effective in 2018, often with significant changes for both individuals and businesses. This is the first major tax reform legislation in more than 30 years, and to implement it, the IRS will have to create or revise approximately 450 forms, publications and instructions and modify around 140 information technology systems to ensure it can accommodate the newly revised or created tax forms, not to mention writing tax regulations for all of these changes – a daunting task for sure. The following are issues that could affect you and that you may need to plan for.

Refund or Tax Due? – Most taxpayers are equating the recent tax reform to a larger refund when their 2018 tax return is prepared. However, that may not be the case because your tax refund is the difference between what you prepaid through payroll withholding and estimated tax payments and what you owe. Even if your tax bill is lower, if your prepayments were also lower, then your refund may not be as expected.

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John Dundon, Pass-Throughs And Tax Cuts And Jobs Act

Now that the Tax Cuts and Jobs Act (TCJA) is in full swing, many of you have been clamoring for tax planning strategies. This post addresses some essential aspects of the TCJA and suggests some strategic implications to be used for planning purposes.

One of the most significant changes coming out of the TCJA are the new tax rates:

  • The individual tax rate is reduced to a maximum 37%.
  • Tax rate for a pass-through entities can be reduced by 20%.
  • The corporate tax rate is reduced from 35% to as low as 21%.

As a result of these new tax rates there is a growing debate over whether a business should be organized as a pass-through entity or a full blown ‘C’ corporation.

Families with multiple businesses in various life cycle stages are compelled to think very carefully about tax implications associated with their ‘portfolio’ of business entities.
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Haik Chilingharyan, Tax Planning

Tax planning involves a wide range of strategic decisions and implementations which affect your overall estate plan. In fact, there is arguably no other area of law that is more complex and that contains as many guidelines as the U.S. tax law. In addition, there are also State and Local Tax laws (SALT). The impact of SALT has become even more significant ever since the passage of the Tax Cuts And Jobs Act, primarily because the legislation now limits the SALT deductions to only $10,000.

The understanding of such complicated set of rules is a fundamental key to tax planning. Proper tax planning is a proactive measure that one takes to arrange and rearrange their finances in order to limit his or her tax liability to the lowest amount allowed by law. The confusion often arises because people often make the mistake of thinking that by hiring somebody to file their taxes they are engaging in proactive tax planning. However, the filing of tax returns is usually a reactive activity, not a proactive one.

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The key to a legal and successful reduction in your tax liability is planning. We don’t just comply with tax procedures but we also recommend proactive tax saving measures to maximize your income after tax deductions.

We take it upon ourselves to master the current tax laws, new tax rules and the complicated tax codes by frequently attending tax seminars. Read More

Many overseas destinations welcome young Australians to live and work. For the best and brightest of Australia’s young, the expat experience is a rite of passage.

However, the best and brightest young Australians often have a HELP debt or Trade Support Loan (TSL). A visit to the Australian Taxation website shows your HELP and TSL debts are a trailing shirt tail that forever ties you to your home until they’re paid off.

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There are several techniques to insure that accumulated wealth and income earned prior to becoming a United States taxpayer can be protected from United States taxes. This requires planning in advance by nonresident alien individuals who will become United States taxpayers.

Have a question? Contact Richard Lehman. Your comments are always welcome!

David Southwell

Understanding the fundamental concepts through which a strategist approaches his or her work is vital to your selection of a strategist and to consideration of proposed strategies. We have developed these concepts through our many years of working with clients and planning professionals in different disciplines.

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