Palladium Newsletter - April 2010

Dear Clients,

Welcome to our fourth newsletter.

We hope that you enjoy it as a useful resource for offshore matters. Our focus this month is on the UK and the budget, potentially the final one of this record-breaking stay in power for the Labour government.

Now that the Budget for the tax year 2010/11 has been released, many may breathe sighs of relief as the news is no worse than had been predicted. Income tax is now a reasonably hefty 50% for higher earners in the UK, though, and this will lead many UK tax residents to seek means of softening this blow.

On that note, according to several sources, a sizeable 5 million of UK tax residents could be ‘non-domiciled’ for UK tax purposes and the wealthy among them could significantly reduce their tax bills. Do a ‘Lord Ashcroft’?:

http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/7465517/Non-dom-status-do-you-qualify.html

Meanwhile, the status quo of high taxes may even mean that France, traditionally considered to be ‘socialist’ and ‘high tax’ may be a feasible (and attractive to some) option for those relocating from the UK to avoid the tax hike:

http://www.timesonline.co.uk/tol/money/tax/article7060766.ece

And those UK residents illegally evading tax will face double the consequences from now on…:

http://www.moneymarketing.co.uk/offshore/offshore-tax-evasion-penalty-doubles-to-200/1003812.article We have been consolidating our shipping practice area and can assist with flagging in the BVI, Isle of Man and Jersey. For non-EU resident beneficial owners of yachts brought into the EU, use of the temporary import relief on VAT is vitally important and a useful way of avoiding up to 20% of the value of the yacht on use within the EU!

We are increasingly setting up private trust companies for clients who require control over trust assets, especially where they involve businesses as going concerns. We assist with establishment and management of PTCs (and purpose trusts to own them) in Hong Kong, New Zealand and the British Virgin Islands. Please email info@palladiumtrustservices.net for more information on this subject.

On a final note I would like to take this opportunity to thank you for your support of Palladium and we look forward to working with you very soon.

Stephen


BVI’s Securities and Investment Business Act 2010 (‘SIBA’) finally becomes law after several years of negotiations:
http://www.hedgeweek.com/2010/04/15/42907/new-mutual-funds-act-british-virgin-islands

Trust crisis ‘alters’ way that HNWIs invest and make charitable donations...:
http://www.eiuresources.com/mediadir/default.asp?PR=2010041501

US introduce laws to make policemen –or bully boys -of foreign banks and offshore providers:
http://blogs.cbh.com/international/?p=159

STEP responses to HMRC proposals to counter tax evasion:
http://www.step.org/pdf/5559519_1_STEP%20offshore%20tax%20evasion%209%20March.pdf

Caution urged with reform of EU inheritance law conflict:
http://news.parliament.uk/2010/03/lords-urge-caution-to-eu-legislators-on-succession-of-estates/'