The Enterprise Investment Scheme (EIS) was launched in 1994 to encourage investments in small unquoted companies carrying on a qualifying trade in the United Kingdom. By their nature, unlisted companies are high risk and have low liquidity, so consequently have difficulty raising capital. The EIS was designed to offer investors tax relief to counterweight those…
Debt recycling is a three-tiered financial strategy that aims to generate future wealth, reduce the home loan, and minimise tax. Debt recycling achieves this by using the current home loan equity to invest (in shares, property and managed funds), and in the process turns non-deductible family home debt into tax-deductible debt. For debt…
There are 19 different reasons to use a tax haven, some legal, and some illegal. No doubt, there are many more, so when choosing a tax haven, we need to firstly look at our objectives – what are we really trying to achieve? Some of the objectives will be complementary (like saving tax and privacy),…
This strategy involves using the entertainment facility leasing provisions of the FBT Act to make owning and operating a boat or yacht as tax effective as possible. To achieve this, it should be structured as follows: Individual owns the boat or yacht. Individual leases the boat to the business entity on an exclusive basis for…
Objectives: Thomas is a plumber who wants to save tax so he can buy a new car. Facts: Thomas’s car was stolen 3 months ago and he is still waiting for an insurance payout. During this 3-month period Thomas borrowed his wife’s vehicle and travelled 5,000 work related km. Thomas’s wife also uses…
Bearer share companies are companies where the individual shareholders are not known to the company. The bearer share companies do not know anything about their shareholders—not their names, addresses, or the size of their shareholdings. Instead, each shareholder’s ownership in the bearer share company will be evidenced by their physical possession of a share certificate…
A Luxembourg Holding Company is a resident company in the tax haven of Luxembourg which operates subsidiaries. Guardian Industries Corp, Amazon, Millicom, PayPal, Apple iTunes, DuPont Teijin Films, Fanuc Robotics, and Skype have all chosen Luxembourg for their European business headquarters. In addition, ArcelorMittal (the world’s leading steel producer), SES (the world’s largest satellite…
Protected cell companies (PCCs) were originally developed in Guernsey in 1997 to provide a solution for companies who wanted to take advantage of the risk management solutions offered by a traditional single parent captive insurance, but who did not want to establish a captive of their own. These are sometimes called divided asset companies or…
Average weekly pay: $1,473 Employment size: 14,100 Future growth: Stable Skill level Bachelor degree or higher …
In 1974 the UK’s top marginal tax rate of 83% applied to incomes over £20,000 (equivalent to £200,000 in 2018). In addition, passive investment income was hit with a 15% investment income surcharge which took the top rate to 98%. In 1974 750,000 people were in the 83% plus tax bracket. During this time senior…
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2