Wed 25 Nov 2015
The Government today announced plans to review rules that encourage non domiciled individuals to invest in UK businesses.
Business Investment Relief (BIR) allows UK resident Non Doms to bring overseas income and capital gains to the UK, tax free but only on condition of making certain qualifying business investments. In general, a qualifying business investment is an investment into a private limited company which is an eligible trading company, stakeholder company or holding company. Importantly, this can include companies in which you or your family and/or friends are involved.
Today’s announcement seeks to encourage greater use of BIR and attract more overseas investment into UK businesses. BIR is attractive for anyone who wishes to move monies currently held offshore to the UK and make an investment either into a UK company with which they are already involved or a qualifying company.
BR can also be used in conjunction with other tax reliefs such as the Enterprise Investment Scheme (EIS), Entrepreneurs Relief (ER) and Business Relief (BR)to maximise tax relief.
Combining BIR with these tax reliefs provides the opportunity to use monies that have previously been ring-fenced from remittance to the UK, to invest extremely tax efficiently and reduce the tax payable on UK income and capital gains.
For more information, contact Mark Brownridge mark.brownridge@mazars.co.uk
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