Tax Structuring
Marlborough use varied and extensive tax deferral mechanisms for the benefit of their clients. We have tax structures for all forms of direct taxation – Income tax, Inheritance tax (IHT), Capital Gains tax (CGT), Stamp Duty Land tax (SDLT) for individual clients and companies, Corporation tax and Employees Benefit Trust (EBT’s) specifically for companies.
UK INCOME TAX DEFERRAL
We have a structure in place that can claim income tax deferral in the United Kingdom for non-domiciled high-earning individuals. This structure, in the form of a PCC (Protected Cell Company) cell, needs to be in place before the one-off claim can be made.
CORPORATION TAX
We also have a structure enabling a client to reduce their company’s Corporation Tax liability. Utilising Marlborough’s sister company - Marlborough Management Madeira and the favourable double tax-treaty in place between Madeira and the United Kingdom can result in a 4% Corporation tax charge moving forward. This Madeiran route can also be used to reduce Corporation Tax liabilities in other EU territories.
UK STAMP DUTY LAND TAX
Marlborough now has a structure in place that alleviates SDLT (Stamp Duty Land Tax) when purchasing a property in the UK. Through the establishment of a PCC (Protected Cell Company) specifically for the purpose we can reduce the cost of SDLT substantially.
EMPLOYER FINANCED RETIREMENT BENEFIT SCHEME (EFRBS)
Marlborough now offer an EFRBS structure that is in essence an unapproved pension scheme. The employer will establish the EFRBS with Marlborough and then make contributions to individual employees, who will each have a sub-fund. This structure is of particular interest to owner managed companies and sports and media personalities.
EMPLOYEE BENEFIT TRUSTS
EBT’S (Employee Benefit Trusts) are a very popular form of mitigating tax and we have a number of EBT structures that we use that are very effective. We have different forms of EBT depending on the needs of the client.
UK CAPITAL GAINS TAX
Capital gains tax (CGT) in the UK is a constant problem for UK residents and yet it can be one of the easier taxes to, at least, defer. Regardless of your residence or domicile we can provide you with a tailored structure to suit your needs. It is usual to establish the required structure before an asset is purchased as otherwise any future transfer of the asset may trigger a CGT charge.
UK INHERITANCE TAX
In the UK, Inheritance Tax (IHT) is often seen as one of the most punitive of taxes as UK residents pay income tax (and CGT) throughout their lifetimes only to suffer further tax at 40% on worldwide assets (over the nil rate band) when they die. It is relatively easy for non-UK domiciled individuals to mitigate their exposure to IHT however for UK residents the planning requires a little more thought. Succession planning is utilised for a number of reasons and most often use a trust structure in order that trustees can hold assets in a safe and secure manner for the benefit of future generations. In certain jurisdictions forced heirship rules apply whereby the estate of the deceased has to be distributed by law in certain set proportions to the deceased's spouse and/or children. Certain trust structures can be useful in allowing the individual to express their wishes to transfer assets more freely upon death.