The UK is Europe’s top destination for foreign investment. It attracted $62bn in Foreign Direct Investment (FDI) in 2012. Moreover, 2013 was another successful year for the UK’s Global Entrepreneur Programme, which since its formation eight years ago has seen approximately £1bn of venture capital raised by entrepreneurs looking to take advantage of the UK’s strong and open business environment.
There are significant tax issues for inward investors to consider such as transfer pricing rules, anti-avoidance measures and thin capitalisation rules. In general, withholding taxes are payable on loan interest payments and royalties paid overseas by UK companies, but there are no withholding taxes on dividends paid by UK companies. Under a new regime, companies are also allowed to benefit from a reduced rate of corporation tax on profits attributed to patented processes.
When considering whether to invest in the UK, it is of paramount importance to determine the structure of the investment, and to assess the feasibility of raising finance where necessary. Moore Stephens can help. We offer a service designed to help clients at all stages of the inward investment lifecycle, from immigration and tax planning, and domicile and residential property issues, through to business structuring and transaction support. For more information please go to:www.moorestephens-jersey.com