Establish a trust and transfer the nominee company management to the registered trust: investment portfolios, property and assets are increasingly being held by a nominee company, which simplifies things for the investment manager as it divests them of all responsibility for the tax return and puts the onus back on you, the principal, to pay the tax.
Using a trust to take charge of the nominee company, though, can help to minimise your liabilities and reduce your tax bill significantly. To find out how, contact Coddan Formations Agency today.
The nominee can give a legal title that allows third parties to leave the beneficial ownership to the nominee company and an outside adviser is considered a volunteer.
Should the principal die, though, the division of assets can be complicated and can depend on residency, location of their death and a will that is in place at the time that should, by rights, have been changed. Other complications can arise, too, as the tax on a nominee company can be a major expense.
A trust helps to combat these problems and provide a greater deal of control over the investments and assets with regards to tax. A trust can hold all of the assets, shares and can control a limited company, which allows you to make decisions on how you withdraw funds. It's a complex structure with an additional layer of complication, but managed correctly it can help you streamline your tax affairs and make your money work smarter and harder, with less of it going to HMRC.
There are extensions to this concept, with the beneficiary of the trust being a foreign entity that is not susceptible to the taxation. This can reduce the tax bill to nil, which makes it an attractive option for those looking for the best corporate structure possible.