We have many client’s who leave the UK to work in the Oil and Gas Industry.
A common scenario is for an employee to spend their working time in a low or zero tax regime, but then to spend the rest of the time when they are not working back here in the UK.
Residency Review
We assist clients by reviewing their tax residency status, with reference to the Statutory Residence Test (“SRT”). For some clients it will be imperative they maintain non-residence in order to rightfully avoid paying UK tax on their offshore employment earnings.
We can provide robust advice on the steps to take to ensure they remain non-resident with reference to the SRT.
Query of Mr. A:
- All the Lorem Ipsum generators on the Internet tend to?
- All the Lorem Ipsum generators on the Internet tend to repeat?
- All the Lorem Ipsum generators on the Internet tend to repeat?
The Problem
The Earn Out, being the right to future consideration, was itself part of the consideration paid for the shares. Therefore, in calculating the capital gain on the disposal of the shares (and what would qualify for BADR), it was necessary to undertake a valuation of the Earn Out.
This involved understanding the terms of the Earn Out, and potential issues and uncertainties at the date of sale that might affect the consideration payable under the Earn Out.
A valuation was prepared, and this valuation was utilised to calculate the capital gain on the sale of their shares.
