About United Kingdom jurisdiction
The United Kingdom, with its capital London, is a combination of Great Britain and Northern Ireland, with Great Britain consisting of England, Wales and Scotland. It is a constitutional monarchy forming a parliamentary democracy, governed by the Prime Minister, which is since July 13, 2016, Mrs. Theresa May.
About the British economy and its tax advantages
The United Kingdom is the world’s fifth-largest economy with a GDP of around € 3 trillion, close to that of France, which ranks sixth in the world. By 2016, the United Kingdom had the fastest growth among the G7 countries. The World Bank ranks the United Kingdom in seventh place in the Doing Business 2017 ranking.
The United Kingdom is the world’s twelfth destination of foreign direct investment, according to UNCTAD. Moreover, for centuries, London has emerged as the lung of finance and business in Europe, and even in the world. The United Kingdom’s strategy is to attract foreign investors from all over the world, mostly in London, through a very attractive tax system. Indeed, a non-resident who chooses to move to the United Kingdom can be granted non-domiciled status, a very advantageous status from a tax point of view. During the first seven years, all income generated in offshore, which means outside the United Kingdom, is not taxed! We let you imagine the assemblies and techniques possible to optimize its income and its offshore business …
Regarding their currency, despite recent devaluations, the British Pound remains a strong and stable currency. Indeed, the United Kingdom is home to Europe’s leading stock market, the London Stock Exchange. Its influence stems from the diversity of its financial activities and its ability to innovate.
The UK’s relationship with the European Union
The United Kingdom has been part of the European Union since October 1971, but its commitment has always been partial. One might cite, for example, the Schengen agreements with exceptions for the country outside the euro zone. The United Kingdom is indeed one of the most Eurosceptic countries of the Union, a position that has led to the formalization of an exit request: the British Exit, better known as the Brexit. The talks started officially on 29 March 2017, so it will take two years to prepare for the exit, the country remains a member of the Union until that date.
British Tax system
The employer directly manages the PAYE (Pay As Your Earn) system in the UK. Income tax is levied directly at source by the latter. The tax rate of an average citizen of the United Kingdom is between 20 and 40% depending on his income, a relatively low rate when compared to some of his European neighbours like France.
Although the United Kingdom is not yet a tax haven, its tax level continues to decline over the years. With regard to corporate tax, the downward trend started in the crisis in 2008, rising from 30% to 20%. This reduction continues with a rate of 20% to 17%, almost half of its French neighbour, which applies a corporate tax rate of 33.3%. The goal is simple, attracting multinationals.
The decline also concerns individuals. According to some estimates, 425,000 British will no longer be part of the minimum taxable income, due to an increase in the brackets of the income tax.
– The benefits of a UK Bank account are :
– A wide range of bankcards available
– An account available in multiple currencies to efficiently manage the traffic of your payments
– High-quality and high-performance service
– An indispensable tool for your English company
Open an offshore bank account with FBS Banking™
FBS Banking has more than 20 years’ experience in the offshore banking sector. We maintain privileged relationships with our offshore banking partners, which results in quick processing of our requests and the possibility of rapid contact with particular bank advisors.
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