What UK tax would an offshore company pay?

Using an offshore company is often thought of as effective in terms of avoiding UK tax. However this is not necessarily the case. There are a number of cases when an offshore company could be subject to UK tax.

If the company receives UK rental income it would be subject to UK income tax on the rental profits

If the company was managed and controlled from the UK it would be classed as UK resident and subject to UK corporation tax on its worldwide profits and gains

Even if it was non resident it would still be taxed on UK trading profits and capital gains. Therefore establishing whether there was a UK trade would be crucial. In practice an important consideration would be whether there was a double tax treaty in place between the UK and the overseas country of incorporation as if so this could alter the UK's taxing rights

There are also anti avoidance provisions such as S776 that can tax the company for certain transactions in land or S13 that can tax UK resident and domiciled shareholders on gains in the offshore company.