Explore Tax Benefits in Gibraltar for Your UK Business
By Phil Cartwright emailFrom April 2023 onwards, the main rate of corporation tax in the UK will rise from 19% to 25%. Although the current 19% rate will still apply if your profits are £50,000 or less, your company will pay more tax on profits above this level.
This will affect many businesses.
Are there any other choices available?
Yes, Gibraltar. If there is no reason to have a physical presence in the UK and your business is online, you could set up in Gibraltar and pay corporation tax of 12.5%.
There are extra incentives to move to Gibraltar which include a relocation allowance and plenty of sunshine!
When is the best time to relocate?
If you are a UK taxpayer then relocating by the 6th April (the start of a new tax year) is ideal. Property is in short supply in Gibraltar so finding a property before the summer tourist months makes sense.
What other taxes are charged in Gibraltar?
Gibraltar is not subject to VAT, inheritance tax or capital gains tax. Income tax is charged on personal income on a staggered rate as below:
| Taxed As Follows | Tax Rate |
| First £25,001 | 20% |
| £25,001 – £353,000 | 29% |
| £353,001 – £704,800 | 20% |
| £704,801 – £1,000,000 | 10% |
| Excess over £1,000,000 | 5% |
There are other tax regimes available in Gibraltar such as Category 2 or HEPSS (High Executives Possessing Special Skills) where income tax can be capped if the individual meets the criteria.
At Octopus, we find the right solution for you. Whether it is setting up a Gibraltar company or applying for a specific residency status, we cater for your needs. We work with UK tax advisors who specialise in re-structuring individuals wealth.
Contact us now for a free consultation.
Call us on +350 200 77779 or email us on info@octopus.gi
By Phil Cartwright
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Frequently Asked Questions
How does the UK corporation tax rate change in April 2023 affect businesses with profits over £50,000?
From April 2023, the main rate of UK corporation tax rises from 19% to 25% for businesses with profits above £50,000. Profits of £50,000 or less will continue to be taxed at the 19% rate.
When might relocating a UK business to Gibraltar be considered appropriate?
Relocating to Gibraltar may be appropriate for businesses that do not require a physical presence in the UK and operate primarily online. This option can provide access to a lower corporation tax rate and other potential tax benefits.
What is the current corporation tax rate for companies in Gibraltar?
The corporation tax rate in Gibraltar is 12.5% for companies. This rate is notably lower than the main UK corporation tax rate as of April 2023.
What are the main types of taxes that Gibraltar does not impose?
Gibraltar does not levy VAT, inheritance tax, or capital gains tax. This creates a simplified tax environment compared to many other jurisdictions.
How is personal income tax structured for individuals in Gibraltar?
Personal income in Gibraltar is taxed on a staggered rate: 20% on the first £25,001, 29% from £25,001 to £353,000, 20% from £353,001 to £704,800, 10% from £704,801 to £1,000,000, and 5% on the excess over £1,000,000.
What special tax regimes are available for individuals in Gibraltar?
Gibraltar offers specific tax regimes such as Category 2 and HEPSS (High Executives Possessing Special Skills), which allow income tax to be capped for individuals who meet certain qualifying criteria.
What practical timing considerations should be made when relocating to Gibraltar as a UK taxpayer?
Relocating by 6th April, the start of the UK tax year, is generally ideal for UK taxpayers. It is also advisable to secure property before the busy summer tourist season, as property can be in short supply in Gibraltar.
Written by
Head of Business Development
Experienced and motivated individual with a demonstrated history of working in the financial services industry in Gibraltar for 26 years. I structure high net worth individuals' wealth using a vast array of worldwide contacts in addition to managing their trusts, companies, funds, QROPS and QNUPS from Gibraltar. I have been involved in many property holding structures working with many different tax advisors throughout my career. I specialise in setting up Gibraltar businesses and provide advice on relocation and residency in Gibraltar.
