Information for Tax Implication

[Gohar]

Hi All,

The client is in non-uk resident. He will open limited company in UK. He wants to invest in gold and stocks on behalf of broker. He agreed to give me 5% return monthly on his investment. Let say He invest £20,000 and end of the year he will make £15000. How he will manage his tax liability on this income. Please advise. Regards YG

 

[AndreasC]

If your friend is investing through a ltd company then it is the company that makes the £15,000 profit and pays tax on it.

Your friend would then extract money from the company by way of salary or dividends say but as he is non-uk resident they'll usually be no further tax

Tax on foreign income

Find out whether you need to pay UK tax on foreign income - residence and ‘non-dom’ status, tax returns, claiming relief if you’re taxed twice (including certificates of residence)

www.gov.uk

If he needs help with the company side happy to have a chat.

Chilled Consulting Limited
Accountant

 

[Mark T Jones]

Due diligence and money laundering spring to mind