UK business owners, who are contemplating a sale of their business, are sometimes advised to consider leaving the UK. Moving away (and taking up tax-residence outside the UK) opens up the possibility of mitigating the tax which would ordinarily arise on a sale.
Relocating to Monaco is a popular option and it is often combined with the purchase of a villa in France. With proper planning, these moves can achieve significant tax advantages.
Druces’ Monegasque and French law specialists have a great deal of experience in this area. Moreover, working with colleagues in our Corporate team, we are able to offer a joined-up service, handling both the company sale in the UK and the Monegasque and French aspects.
When thinking about this type of planning, key considerations typically include:
- The need to tackle the tax planning (to cease to be UK resident and become Monaco resident) before your sale.
- Dealing with the formalities in Monaco to establish residency there and arranging the lease of a property in Monaco
- Consideration of how to manage your UK company (after ceasing to be UK resident but before the sale) so that you are not seen as actually UK resident.
- Drafting the company sale document in a way which does not prejudice your non-UK residence status.
- Post-completion UK tax planning to minimise the risk of a challenge by HMRC to your residency status and considering any return to the UK in the longer term.
- Wills and succession planning post-completion (we are able to advise on wills and tax planning in both the UK and France).
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