Somerset Maugham called tax haven Monaco a “sunny place for shady people”, a sharp phrase picked up and repeated by Business Secretary Vince Cable to describe tax-sheltering offshore locations.
But while in the past offshore domiciles were dominated by poorly regulated financial centres used for tax evasion and money laundering, today these domiciles are much better regulated and clients who don’t want to pay their share of tax feel less vulnerable about using them now.
This guide looks at the pros and cons of offshore investing and scrutinises the tax treatment in more detail.
Answers provided by Darius McDermott, managing director of Chelsea Financial Services; Rachael Griffin, head of technical marketing at Skandia; and, Simon Willoughby, head of proposition at Axa Wealth International.