For Expatriate Tax Saving Wealthy Brits Seek Shelter Offshore

As the UK government’s taxation policies and law changes negatively impact the wealthy, more are choosing to shelter offshore

A leading London based business law firm which engages in taxation related advisory services as part of their holistic approach for their client base has advised that the current unstable tax climate in the UK means that for expatriate tax saving, their wealthy British clients are seeking shelter offshore in droves.

Caroline Garnham, a partner at Lawrence Graham LLP explained in a recent interview that it is becoming impossible for high net worth individuals and British based companies with a high turn over to effectively plan to manage their tax burden when the British tax laws are subject to massive change with little or no warning. 

Traditional tax planning methods employed in the UK by wealthy Brits for the legitimate mitigation or deferral of part of their tax burden no longer apply or can be relied upon according to Ms. Garnham from Lawrence Graham.  In her interview she stated: “British tax laws change so frequently and with little warning, that what we have at the moment is paralysing the wealthy.”

Advice being given in certain circumstances is that expatriate tax saving by sheltering offshore is the only way to go and clients are being advised to relocate abroad or move all or part of their business offshore. 

While this is great news for the offshore tax havens that provide superior protection and services to those who utilise them, it’s terrible news for the City and for the UK as a whole. 

Instead of reaping the benefits of the taxation revenue generated from these high net worth individuals as well as the potential employment benefits and corporate taxation profits from these successful companies, the British government are alienating wealthy Brits to the point that they move abroad.

There is a brain and money drain affecting the UK at the moment, and instead of stemming the flow of creative, successful and affluent people and companies with intelligent taxation policies – the government and its policies are pushing people out of the UK.  People are literally voting with their feet and moving abroad, sheltering offshore and embracing the expatriate tax saving benefits that they then become entitled to.