Family offices need funding to pay salaries and other overheads. Although many family offices are typically operated for the benefit of the family (and not on a commercial basis), the funding nevertheless needs to be considered commercially to avoid adverse tax consequences arising. This is particularly the case where offshore trusts are involved, as non-commercial arrangements can lead to income or gains becoming taxable. Other tax issues include VAT and benefits in kind, and (for non-domiciled families) taxable remittances.
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Family offices need funding to pay salaries and other overheads. Although many family offices are typically operated for the benefit of the family (and not on a commercial basis), the funding nevertheless needs to be considered commercially to avoid adverse tax consequences arising. This is particularly the case where offshore trusts are involved, as non-commercial arrangements can lead to income or gains becoming taxable. Other tax issues include VAT and benefits in kind, and (for non-domiciled families) taxable remittances.
If you are not a subscriber, subscribe now to read this content.
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