Offshore is an accounting way of saying “abroad” or “overseas”.
If you’re a UK tax resident, you need to declare your offshore gains and income to HMRC, file a Self Assessment tax return and pay tax on them.
The only exception is if you declare yourself to be a “non-domiciled” person – but then you also lose your UK tax-free allowances and have to pay a special charge (it starts at £30,000 per year).
Another special situation is when you’re a UK tax resident and run a limited company that’s based abroad, and you’re its only director and shareholder. The HMRC will likely consider your company a UK tax resident and ask you to pay UK corporation tax for its profits (instead of the local corporation tax wherever your offshore company is registered).
Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.
Have a minute? See how it works