The nature and characteristics of our economic world are presently very different from how it all was just a few years ago. There are many examples which highlight this. Few, however, illustrate it all quite to the extent of how beneficial it is to establish a UK based holding company when engaging in cross border business.
For many years it was the commonly held perception that one should have their holding company anywhere but the UK. That was in the days when operating here meant bringing upon yourself high levels of red tape and tax. Whilst some might have simply assumed the same is true today, in reality it’s quite different. As one of the leading accountants Taunton has to offer we’ve watched the overhaul that has seen the UK become a highly attractive option as the base for holding companies.
In terms of the benefits, let’s concentrate on one of the most important – tax. A big factor which saw businesses set up offshore holding companies was the promise of low to no taxation rates. Whilst the lure of that was always fundamentally understandable, in the long term it was flawed as one did not avoid taxes when bringing profits into the UK.
At present the corporation tax rate in the UK is 20%, with the current proposal being to reduce it to 18% by 2020. Whilst this is attractive in its own right, it is all the more so when considered against cross border trade. At present the UK has double tax treaties with around 120 countries. This making international cash liquidity positions more fluid through the easier transfer of profits. Exemptions are also available for certain funds, in particular subsidiary disposal, dividend repatriation and capital gains.
Gaining the greatest success from the above requires having the correct work carried out at a foundation level. This is where we come in to be of service to you. Over the years we’ve come to be regarded as the best accountants Taunton has available for the formation and establishment of a holding company in the UK. We are the team to give you the most assured and supportive services you require for success.