Toby Harris Tax Consultancy : Repatriation of the Offshore Family Trust

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		Repatriation of the Offshore Family Trust Changing trust and tax law The problem Many trusts were set up offshore a few years ago for good reasons, particularly to ease the burden of tax on capital gains. However, successive governments have eroded those tax advantages. Often there will be a charge to tax on income brought back to the UK and a special "stock piled gains" charge on funds brought "home" where in the past the trustees have made a tax-free gain offshore. Professional fees become an issue. The solution Merely bringing an offshore trust back to the UK does not of itself trigger a tax charge. In many cases the family would prefer to administer the fund themselves, or see it handled by local professionals whose charges may be easier to control than those of foreign organisations Toby Harris Tax Consultancy has experience of this work. We know the issues. Offshore trustees may feel a duty to "vet" the new trustees; if so, we are well-known in our field. The motivation for change may not be to save costs, but if it is, we offer a service as good as can be found in London but at much more reasonable rates. That can cover: Bringing the trust home Notification to the tax authorities Meeting the family to agree how the trust will be run in the future Making tax-efficient distributions to the family Keeping accounts Making and filing tax returns covering income, gains and capital Advice to the family on tax generally, especially Inheritance Tax We do as much, or as little, as we are asked Experience at your service Toby Harris has many years of experience of trust and tax matters. In nearly thirty years practice as a solicitor he specialised in trusts and probate and has published widely on the subject. In 1996, Toby founded a small practice to offer a full range of tax consultancy to private individuals and other professionals. He is assisted by Geoff Clark, previously a Tax Inspector with the Inland Revenue, whose long experience in the field ensures that we comply with the stringent requirements of self-assessment as applied to Trust and Estate and Personal Taxation. He also makes sure that all available allowances are claimed for beneficiaries. In 2004 the practice was strengthened by the arrival of Iris Wünschmann-Lyall, who specialises in estate planning, trusts, probate and related tax matters. Iris qualified as a solicitor and is a Registered Trust and Estate Practitioner. Both Iris and Toby write regularly on technical matters for the professional press. Loss of tax advantages Few offshore trusts are now as efficient in sheltering income, gains of inheritance as they used to be. Ongoing, rising costs Trust funds under £5 million are seen by many offshore professionals as inefficient. The costs of an offshore structure can easily swallow up all the income. A return to simplicity Many families would actually prefer something less exotic. We really value your business. For us, even smaller trusts are welcome. Our control of overheads and simple administration procedures keep down the costs whilst still making family trusts very worthwhile for us.