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22 October 2008
Issue: 4181 / Categories: Forum & Feedback
Tax planning for a company managed from Malta and its directors

I have husband and wife clients who are the directors and shareholders of a UK limited company which has properties in the UK and which generates an annual net profit from rents of approximately £25 000 which of course is subject to corporation tax.

The situation regarding the directors is as follows.

  • The directors normally have a salary of £5 000 p.a. each and draw the rest in dividends.
  • They have been resident in Malta for several years and will not return to the UK.
  • Their only assets here are the shares in the company.

In order to reduce the charge to corporation tax we are considering including a management charge as a deduction in the profit and loss account for services carried out by the directors.

The directors do genuinely run the company at one remove and are...

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