This alert was posted prior to the passing of more recent tax legislation. Before acting on any of the information in the following piece, please consult with a tax expert to learn if and how current legislation might impact or nullify what is stated in this article.
US businesses investing in the UK can take advantage of several factors that make this an attractive opportunity, but there are potential pitfalls to consider.
US investors can establish a UK presence through either strategic acquisition or new entities. In both cases, investors should consider customers and costs, and the legal, personnel, and tax implications of such an investment.
Many businesses can benefit from advantageous UK tax reliefs, exemptions for capital gains and dividends, and a generous corporate tax rate. The UK also offers talent pools that differ from those in US cities and states; however, investors must consider UK employees’ cultural preferences for both tangible and intangible benefits.
Despite some of the unknowns associated with Brexit, many factors make the UK an attractive target for business investment. In fact, establishing UK holding companies can often be the gateway to expansion in Europe, the Middle East, and Africa.
See details in “How to invest in the UK” in a 2017 special US edition of Accounting and Business magazine.