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Monday, July 16, 2018

Counselling Aimed at Company Capital Transfers

The UK is an important trading partner for many Countries around the world, representing a key target for the market.

Membership in the European Union leads to freedom of movement in trading within it, while respecting the common rules of business. While taking into account the recognition that the United Kingdom, for the 12th consecutive year, is the best European destination for Foreign Direct Investment - FDI, the decision on how to penetrate the UK market must be properly assessed and weighted in the light of various factors, such as the nature of the activity that is going to be carried out, the size of the firm, the duration of the business, the will to choose a limited or unlimited company, tax considerations and so forth.

There are many reasons why foreign investors choose the UK for its international expansion:

While it is true that the UK legislation on trade is particularly flexible (think of the possibility of obtaining funding for research and development business, capital grants for manufacturing, relief up to 100% for investments in certain areas such as those for energy plans, etc.), on the other hand "the Country" has a strict system of rules designed to control the activities business (think of the Law on combating money laundering, the fight against corruption, the protection of personal data, the fight against unfair competition practices, consumer protection, the trademark protection, etc.).

Given this potential for investment, both companies and those who want to start up businesses or diversify investment plans, whether small or large ones, will find an ideal area in the United Kingdom.

Measures to revive and sustain the economy are, for example:

  • Tax cuts on corporate profits from 28% to 20%.
  • A higher tax cut on incomes of individuals from 50% to 45%.
  • Incentives and tax breaks for businesses.
  • Excise duties cuts on petrol and electricity consumption.

To seize the opportunities offered by the UK market it is necessary to be present on site, or indirectly throughBright Business Consulting LLP which will point out the most appropriate opportunities referred to the case; in this regard, "Counselling Aimed at Company Investigations & Commercial Information" is useful. This characterizes the advantage of seizing the emerging trends and peculiarities of British demand, as well as shorten the distance between producers and consumers in terms of logistics and business, constantly monitoring both the regulatory developments and the administrative policies adopted and implemented by governmental Authorities that may be subjected to significant changes.

In view of the above circumstances, a foreign investor who wants to create or expand his business in the UK can:

  • Set up a new company in compliance with the Law in force in the United Kingdom.
  • Work in the UK as a Sole Trader.
  • Establish a partnership with one or more British companies.
  • Establish a place of business or branch in the UK.
  • Enter into agreements with other entrepreneurs or companies already
  • included in the British market (Joint Venture).

It is wise to let professionals assist you because the feasible subtleties are the fruit of knowledge of Laws, treaties and procedures. In the UK, a mistake is paid dearly, not only in economic terms. As a result of it, our "Company" strongly advises not to pursue transactions with random news collected from different sources which are not related.

The UK has signed a number of treaties against double taxes, among which are Italy, Germany, Canada, Spain, France, Luxembourg, The United Kingdom, Russia, Japan and Australia. These treaties provide essentially to plan a priori that income is taxable only in one of the two states signed there or that it is taxable in both states with the requirement, however, for one of them, to apply cutting from the due tax on the basis of domestic regulations, the tax already paid in the other state.

Tax advice aimed at identifying the most advantageous tax planning (selecting the ways of business, the corporate organization which are possible to lessen the tax burden) is what should be done to legitimize the profits. A customized research on specific areas of activity and in compliance with different local Laws on tax is helpful in planning, therefore Bright Business Consulting LLP provides the necessary support for achieving this target.


Since July 2010, the British government has issued a raised rate on financial income to 28% from a previous 18% but only applyable to those who earn high incomes, i.e. the so-called - Higher Taxpayers and Additional Rate Taxpayers, that are those to whom tax applied are the two highest rates of income. This means that for all other investors who receive an income which is less than 35 000 GBP per year, i.e. the so-called - Basic Taxpayers, the Capital Gains Tax, is still 18%.

Concerning dividends, there is currently no withholding tax on those paid by companies resident in the UK, while interests are usually taxed by a 20% withholding.

These are just some summary information about "Dividends, Capital Gain, Interest" which related to the previous cases, must be considered under various circumstances, therefore, also planning a tailor-made "Tax Planning". Bright Business Consulting LLP can be your partner in this, both at warning and implementing, providing our expert effective advice thanks to the synergies of our "Company", ensuring "Warranty & Assistance" and all the previously planned and scheduled targets to our Customer.



Bright Business Consulting LLP
58/60 - Kensington Church Street


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