Tax Services Questions

Q: I am setting up a business. What do I need to do?

A: Being self-employed carries additional tax reporting duties. All of the following will have to be considered when you become self-employed:

  • Registration with HMRC
  • Record Keeping
  • Liability to Class 2 and Class 4 National Insurance
  • Possible VAT liability
  • Preparation for future tax liabilities.

From the calculation of the class 2 and class 4 National Insurance liability, to arranging for your tax adjusted self-employed accounts to be completed, Coutts Tax Service will be able to help those who are setting up their own business. We will also be able to advise on any appropriate tax planning opportunities that arise. 

Q: I have recently found a country property, that I would like to buy as a second home. How will this affect my tax position and is there any planning that I can do?

A: First, you will need to think about whether both properties will be used as proper homes or whether one of them is really a holiday home. If only one is your home then any gain on sale of the other will be subject to Capital Gains Tax. If both qualify as homes then you should elect for one of the properties to be your principal private residence, for CGT purposes. This election must be made to HMRC within a specific time period. Coutts Tax Service will be able to help you with this election and make sure that it is made on time. We will be able to calculate the potential tax and make sure that all possible claims and reliefs are taken into account in order to minimise the tax liability.

Q: Am I non-UK domiciled?

A: Domicile is a concept of English Law. It is determined by individual facts and circumstances but usually (though not exclusively) is the country which you regard as your permanent home. This means that you may be living and working in the UK but have a domicile in another country. Domicile is quite different from residence since it rarely changes in the way that residence does. In most cases, a person takes the domicile status of their father when they are born. A person’s domicile status can change during their life, initially depending on their father’s choices, and later their own intentions. There are no hard and fast rules as to how to evidence a non-UK domicile status, and each case is determined on its own merits.

There are potential UK tax advantages to being a non-UK domiciled individual. Coutts can provide advice on establishing your domicile status, as well as communicating with HM Revenue & Customs about the facts of your situation. Coutts can also provide advice on the tax implications of being non-UK domiciled and how best to structure your UK and offshore assets.

Apply
To take advantage of our tax services, you need to be a client of Coutts. If you are already a client, please speak to your private banker. If you wish to become a client, please either complete this form or contact us on +44 (0)20 7753 1963