Losing UK company tax residence

Whether a company is UK resident or not can be very important for UK and offshore tax planning purposes. Not only does a non UK company get an exemption from many capital gains, but it's also exempt from UK tax on overseas income. In order to decide whether a company is UK resident for tax purposes you'll need to consider the following three points:

• Where the central management and control of the company is exercised
• Where the company is incorporated/formed
• Whether the company is `treaty non-resident'

It's this last point that is particularly interesing. Treaty residence applies for the purposes of a double tax treaty but can also apply for other tax purposes as well. This article: How a UK company can use a double tax treaty to reduce UK tax looks at how double tax treaties impact on company residence and how they can be used to transfer company tax residence overseas. There's also a useful list in this article of Countries that don't have a residence tie breaker in the tax treaty