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Forums > Active > The Netrent Forum
Subject: Off-Shore Business Bank Account

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quantumorange13
Posts:1
01 Feb 2007 04:58:38 Alert 
Hi all,

Ive just been advised by an IFA that it would be in my best interest to acquire a new off-shore Buisness bank account in Gibralta with another account in Spain or Cyrus to deposit earnings and start new ventures.

He reckons that if i open this new account i can acquire development finance over their at a lower interest rate than in England and i could then purchase all my properties which i own on BTL mortgages, from myself using this new overseas Business.
Of course i would have to pay the English stamp duty if applicable, and the tax on profit made from the remortgaged properties, plus i could buy the un-remortgaged properties from myself at what i had paid for them, then i wouldnt incurr any tax as there would be no profit on those particular ones.

In addition to that, with having the secondary bank acocunt outside of Gibralta or certain other banks, ive been told that any future profit from the properties and any new purchases or developments would be tax free. Therefore all my hard earned profit would not go to the tax man. Or would it???

Do i have to have a base, either a home or an office, in Spain or Gibralta?
Is lending over there the same as in England, especially regarding development finance to build houses?
Ive been told the set up fees are around £1k to £1.5k???
Has anyone done this and is reaping what they sow??
What are the pitfalls?

Any help and advice would be great, thanks x


Paul Mac
Posts:56
01 Feb 2007 12:51:48 Alert 
Quite simply, just ask your IFA to jot all these words of wisdom down on their company letterheaded paper, sign it and then hand it to you. At the same time ask them to send a copy of this 'advice' to the Inland Revenue for their comments and whilst they're at it they may as well save time and send it straight to the Financial Services Authority.

There is so much wrong with this 'advice' it's hard to know where to start, but let's just start at the so-called costs. To set this arrangement up will cost more than £1500 but will probably cost you more than that each year just to run it.

Your IFA is an idiot in my opinion. Get a new one or at the least make damn sure that their proffessional indemnity is paid up to date, you'll be claiming on it sooner rather than later.
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Forums > Active > The Netrent Forum > Off-Shore Business Bank Account


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