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Be aware of UK tax laws when inviting in overseas investors

This article was first published in Caterer and Hotelkeeper.

The problem

Any UK hotel operator who wishes to attract overseas investment into their business has two options. They can seek to have the investment by way of straight equity, or a mixture of equity and debt.

If the overseas investment is by way of equity, the overseas investor should not be subject to UK taxes in relation to the dividends arising from his equity holding or any capital gains on disposal of the investment. Though they will need to consider carefully the tax consequences of the jurisdiction in which they are resident. More…