Corporation Tax and Non-resident directors and profits

Discussion in 'Accounts & Finance' started by Brian2020, Apr 9, 2019.

  1. Brian2020

    Brian2020 UKBF Newcomer Free Member

    13 0
    As UK non-resident I'm looking to form a UK Ltd, which will be controlled, managed, and earn its profits outside the UK.

    Would this company still be subject to UK corporation tax on its worldwide profits?

    Thanks
     
    Posted: Apr 9, 2019 By: Brian2020 Member since: Mar 23, 2016
    #1
  2. WaveJumper

    WaveJumper UKBF Enthusiast Free Member

    564 101
    If the company is a UK company it will pay its taxes in the UK, who is going to control your company if you are a non resident in the UK, sorry you already answered that above :)

    There's no restriction for non UK residents to open a ltd company in the UK, you will need a UK address though
     
    Last edited: Apr 9, 2019
    Posted: Apr 9, 2019 By: WaveJumper Member since: Aug 26, 2013
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,694 787
    yes unless you agree with HMRC that the company is Treaty Non Resident as controlled from offshore.
     
    Posted: Apr 9, 2019 By: UK Contractor Accountant Member since: Sep 18, 2013
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    17,341 1,952
    If want to not be subject to UK corporation tax then set up outside the UK.
    Won't make a difference to politicians and the media who will still insist you pay UK corporation tax but legally you would not be liable.
     
    Posted: Apr 9, 2019 By: Mr D Member since: Feb 12, 2017
    #4
  5. nick34785

    nick34785 UKBF Regular Free Member

    124 11
    The company is still liable for taxes in the UK, but a non resident director can receive a salary/directors fees that would not be taxed in the UK.
     
    Posted: Apr 10, 2019 By: nick34785 Member since: May 25, 2014
    #5
  6. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

    1,116 225
    You may also want to check if the company could be considered tax resident wherever the director is residing if the company is being effectively run from there and therefore also liable to tax there.
     
    Posted: Apr 10, 2019 By: TheCyclingProgrammer Member since: Jul 15, 2014
    #6
  7. Brian2020

    Brian2020 UKBF Newcomer Free Member

    13 0
    Thanks for all the very useful responses .

    I've looked into incorporating elsewhere, but I prefer the UK for banking, reputation etc

    The country I'm in doesn't have CFC laws, so I'll take a closer look at treaty non-residency for UK ltd's.
     
    Posted: Apr 11, 2019 By: Brian2020 Member since: Mar 23, 2016
    #7
  8. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,694 787
  9. nick34785

    nick34785 UKBF Regular Free Member

    124 11
    Check corporate residency rules, not only CFC rules is important. Normally a company is resident where it has management and control.
     
    Posted: Apr 12, 2019 By: nick34785 Member since: May 25, 2014
    #9