The impact of Brexit uncertainty on offshore banking in the UK

As the uncertainty surrounding Brexit continues, many are looking for clarity on what leaving the EU might mean for their businesses before carrying out investment plans. The UK was once considered a jurisdiction that offered benefits to foreign investors including a stable political and economic situation, but the continued uncertainty is leading individuals and businesses alike to consider their options. Ireland, Jersey and the Isle of Man are becoming more attractive jurisdictions to those who are concerned about the impact of Brexit on their assets.

James Turner, Director at company formation specialists, Turner Little, says: “The only thing we know for certain, is that change is coming. It’s important to be well-prepared and consider your options in the face of uncertainty. We always recommend, and ensure, our clients have a strategy that’s set up for the long term.”

“We are seeing multiple businesses consider setting up offshore companies and legal entities in Spain, in preparation for Brexit. Having a Spanish legal entity allows businesses to hire staff in the EU and retain current EU staff who may be unable to work in the UK post-Brexit. But we are also seeing strong interest in other jurisdictions as well.

For example, setting up a company in Ireland is an attractive option due to its geographical proximity to the UK and Europe. Ireland has one of the lowest corporate tax rates in Europe at 12.5%, and companies typically take under five working days to register.

Despite its tax incentives, Ireland is not perceived as a traditional offshore company destination, but it offers companies access to a number of double taxation treaties; trade, economic and commercial advantages as well as other tax advantages for companies who engage in specific commercial, industrial and financial activities.

The Irish government actively encourages foreign investment and has enacted supportive legislation that ensures the continued growth of foreign investment in the country. Ireland is clearly a viable option that offers many benefits for those considering offshore company formation. These offshore centres are an integral part of a globalised economy, which enables money to move across borders relatively easily thanks to well-regulated financial institutions.”

Offshore companies offer numerous benefits to both existing businesses or individuals, from asset protection to confidentiality, enhanced privacy, tax efficiency or simply international business growth. Placing assets into offshore companies and overseas legal structures can provide an additional layer of protection from future liabilities,” he adds.

“At Turner Little, we familiarise ourselves with the regulations necessary for compliance in a multitude of offshore jurisdictions – so you don’t have to. Between banking, investing, businesses and more, there is a myriad of options out there, with plenty of countries to choose from when it comes to offshore banking. We’re already working with clients on preparations for Brexit by forming companies in alternative countries.”

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