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Expansion Into Overseas Territories

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We at Reeves are increasingly noticing a significant number of our clients are now expanding overseas and while this can be excellent from a commercial perspective, one should never underestimate the importance of getting the correct tax structures in place prior to undertaking such a venture writes Margaret Connolly, Head of Tax at Reeves.

If your expansion is structured properly from a tax perspective at the outset it will pay dividends (pardon the pun) in the long run. A badly structured expansion can indeed be most costly. It may give rise to irrecoverable withholding taxes, and indeed a higher overall tax rate than might otherwise have been achieved.

Where the structure is not fit for purpose, remedial action may well be possible, but it is certainly preferable to get it right first time.

Most owner managed businesses will not have their own in house tax team to recognise and deal with the relevant issues, and indeed often their external advisers will not find out what they have been doing until sometime after the event. However, we at Reeves believe in getting involved before the structure is put in place.

Not only do you have to be considering your UK taxes and cross border Transfer Pricing principles, but also the local legislation of the country into which you are expanding. In this context, Reeves are particularly well placed to help, sitting as we do at the heart of the Kreston International global network of accounting firms.

Should you have any queries in this regard please contact any member of the Reeves corporate tax team by phoning 01227 768231 or by emailing