Q&As

What are the key potential tax and legal implications of having a non-UK director on the board of directors of a UK company?

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Published on LexisPSL on 17/07/2019

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • What are the key potential tax and legal implications of having a non-UK director on the board of directors of a UK company?

What are the key potential tax and legal implications of having a non-UK director on the board of directors of a UK company?

Before introducing a non-UK tax resident individual as a director of a UK company, the company should obtain advice from UK and non-UK tax advisers to ascertain any potential tax implications for both the company and the director. Tax considerations include (but are not limited to):

  1. in which jurisdiction(s) will the company be taxable?

  2. will that non-UK individual director increase the risk that the company might be or become resident outside the UK for tax purposes (for example where that non-UK director is resident) and therefore also taxable in that other jurisdiction? This depends on the domestic law on corporate residence in that jurisdiction, including, potentially, the role of the non-UK tax resident individual director, how many directors are on the board, how many non-UK directors are on the board, the way that the company’s management is run and where the board meets to take its decision and whether the board is in fact the paramount decision-making entity of the company. It is more complicated, and can give rise to double taxation, if a company is resident for tax purposes in more than

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