UK business owners who are considering selling their business are sometimes advised to consider leaving the UK. Moving out (and settling outside the UK as a tax residence) opens up the possibility of reducing the tax that would normally be charged on a sale if the owner of the business being sold was a UK resident at the time of sale.
Moving to Monaco is a popular option and is often combined with buying a villa in France. With proper and strategic legal planning, these moves can yield significant tax benefits.
Eberhard Advisory's Monaco-French law specialists have considerable experience in this field. In addition, working with colleagues in our corporate team, we are able to offer a combined service covering both the sale of the company in the UK and the Monaco aspect as well as the French one.
When considering such a business move, key considerations typically include:
- Need to deal with tax planning (ceasing UK resident and becoming Monaco resident) prior to sale.
- Completing all formalities related to obtaining a resident card in the Principality of Monaco in order to settle there and concluding a real estate lease agreement in Monaco.
- Careful consideration of how to manage your UK business (after you are formally no longer UK resident but before selling your UK business) so you are not perceived by UK tax officials as a true UK resident.
- Completing a comprehensive business sale document in a way that then does not affect your non-UK resident status in any way.
- Comprehensive UK tax planning after finalizing the UK business sale formalities to minimize the risk of HMRC questioning your residency status and considering a possible return to the UK in the longer term.
- Wills and inheritance planning after the sale of a UK business and relocation to Monaco (The Eberhard Advisory team is able to advise on wills and inheritance planning as well as taxation in both the UK and Monaco).
