This article will look at PFICs for UK residents. For questions and advice — advice@adamfayed.com.

PFIC:

‘Passive Foreign Investment Company’ also known by the name ‘PFIC’. A Company is said to be a PFIC if it follows two conditions. They are:

  1. Depending on the income of the company, a minimum of 75% of the gross income of the company should be a passive type of income. It should not be generated from the company’s active and regular business methods.
  2. Depending on the company’s assets, a minimum of 50% of the…