Caption: Yachts in St Helier Harbour
I have just returned from a weekend on the beautiful island of Jersey. It just happened to coincide with the headline news that comedian Jimmy Carr had been using offshore trusts, based in Jersey, to avoid his hefty tax bill. Obviously, this was an opportunity for lots of jokes at his expense over the beers this weekend and you can bet he will be adding a few to his own routine in the months to come.
The friend I was visiting works for a legal firm that specialises in the setting up of offshore companies and it’s obvious that the economies of places like Jersey and the Isle of Man rely on wealthy people and companies taking advantage of the tax benefits of such havens. Whatever your opinion of Jimmy Carr, if most people were to answer the question, “If you could pay less tax legally, would you?", the response would be positive.
Nobody wants to pay more tax than they have to but you do not have to go to amazing lengths with morally dubious and costly schemes. There are opportunities to help reduce your tax burden that the government have put in place intentionally to stimulate investment. Some people do not even take advantage of tax free savings and Capital Gains Tax rules and pay more tax on their savings and returns than they actually need to.
As part of our service we can work with your accountant to manage your money in the most tax efficient way and with our cash-flow modelling software we can make predictions about the likely Inheritance Tax burden that could potentially be left for your family. There are also perfectly legal steps we can take to reduce that tax bill too.
So, with good financial planning you can reduce your tax burden using legal means and you don’t have to go to Jersey to do it. Although I can thoroughly recommend a holiday there!