The fees of the structure are insured by a very large London insurance company (you know them), to get insurance it must have past due diligence,
now when it comes to investment this is a different story, example I do this structure, I then decide to invest(cough!) in the nearest casino as they look good odds if I win. You cant insurance against stupidity.
Any threat you care to imagine, (Creditors, Litigation, HMRC, and yes PNL Divorce, not just yours but your childrens and theirs childrens divorces etc etc etc)
they get to protect their assets albeit for a high fee though o.0
doing this does not force them not to pay taxes I have a number of clients that do this but also want to pay taxes as well and do so, also a number use what taxes they have saved and give that % away to charity
I had overlooked the obvious here. I.e. merely setting up a pair of discretionary settlements within the nil rate bands.
But clients appeared to have been led down a different path, one involving offshore trustees and a new UK limited company.
One thing I overlooked to mention were the £25,000+ setting up fees and ongoing costs of £350 per annum. I did mention to my clients that the fees were rather on the high side.
I suspect the clients' son maybe driving this matter. He appears to have some vague connection with the (unqualified) financial adviser.
And today, I have just found out that the stockbroker has been asked to transfer the quoted share portfolio into the name of the new company which one of the clients has been made sole director of.
So client(s), up to press, is/(are) still in "control" of the asset.
Not sure about the CGT at point of entry into the new company.
Will keep you posted on any developments. Time now to have a "good chat" with clients.
that £25000 fee sounds suspect why? it is far higher than the norm, standard fee for that would either £7500 or £12000 depending on bands used
The £350 is the offshore trust annual fee (by the way that is high as well should be £200)
Also red flag is the transfer of the asset into the name UK company is a no no.
Concerns;
1) No, full control, nothing leaves UK, they never lose control of the asset, this is just a paper exercise.
2) Gift hold over Relief, (it is gifted to overseas entity)
3) Income goes back to the 'owner' (overseas entity)
4) Once setup cannot be closed (can be dormant by not using) but trust never dies.
5) This is not TAX AVOIDENCE, you are protecting assets, does not require DOTAS, not within Ramsey (Dextra and Sempra)
5a) Do Not Forget HMRC did this themselves with 650 tax offices in 2002 (Mapeley Steps Ltd - Bermuda) to mitigate CGT
6) not sure by 'Lost' assets are still controlled.
7) been used since 1993, yes a number of enquiries have been sent out but never acted upon, nothing HMRC can do hence the reason why HMRC has disbanded the anti abuse team recently.
Ah ok pm me your telephone number or email address give a me a date and time when you are free and lets at least start a dialog then. I cannot be more fair than that.
My answers
The fees of the structure are insured by a very large London insurance company (you know them), to get insurance it must have past due diligence,
now when it comes to investment this is a different story, example I do this structure, I then decide to invest(cough!) in the nearest casino as they look good odds if I win. You cant insurance against stupidity.
Any threat you care to imagine, (Creditors, Litigation, HMRC, and yes PNL Divorce, not just yours but your childrens and theirs childrens divorces etc etc etc)
they get to protect their assets albeit for a high fee though o.0
doing this does not force them not to pay taxes I have a number of clients that do this but also want to pay taxes as well and do so, also a number use what taxes they have saved and give that % away to charity
Haha I see what you did there, however its not a 'Scheme' its a 'Structure' :P scheme sounds like its dodgy :)
that £25000 fee sounds suspect why? it is far higher than the norm, standard fee for that would either £7500 or £12000 depending on bands used
The £350 is the offshore trust annual fee (by the way that is high as well should be £200)
Also red flag is the transfer of the asset into the name UK company is a no no.
Your Summary is CORRECT
Concerns;
1) No, full control, nothing leaves UK, they never lose control of the asset, this is just a paper exercise.
2) Gift hold over Relief, (it is gifted to overseas entity)
3) Income goes back to the 'owner' (overseas entity)
4) Once setup cannot be closed (can be dormant by not using) but trust never dies.
5) This is not TAX AVOIDENCE, you are protecting assets, does not require DOTAS, not within Ramsey (Dextra and Sempra)
5a) Do Not Forget HMRC did this themselves with 650 tax offices in 2002 (Mapeley Steps Ltd - Bermuda) to mitigate CGT
6) not sure by 'Lost' assets are still controlled.
7) been used since 1993, yes a number of enquiries have been sent out but never acted upon, nothing HMRC can do hence the reason why HMRC has disbanded the anti abuse team recently.
https://www.coddan.co.uk/ready-made-off-the-shelf-companies/vintage-read...
google is your friend, 3 sec search
long time scam, orginated in USA
plenty of funny youtube vids showing the scammers getting scammed on speakerphone.
yes he still uses / has access to them, he controls them not owns them, ownership creates liability.
most of London is owned offshore, they are still rented/lived in. Think Duke of Westminster (Grosvenor Trusts) not owned but controlled.
Ah ok pm me your telephone number or email address give a me a date and time when you are free and lets at least start a dialog then. I cannot be more fair than that.