The following Tax guidance note provides comprehensive and up to date legal information covering:
A company is UK tax resident if it is:
incorporated in the UK (subject to exceptions), or
centrally managed and controlled in the UK
provided it is not treated as resident outside the UK in accordance with a double tax treaty (ie provided it is not treaty non-resident).
The central management and control test is often referred to as CMC.
For information on treaty non-residence, see Practice Note: Tie breakers—when tax treaties impact on the UK tax residence of companies. For information on how to migrate a UK tax resident company from the UK, and the tax consequences of such a migration, see Practice Notes: Company migration or corporate inversion—how to change tax residence in practice and Consequences of company migration—UK exit charges and post-migration UK tax considerations.
It is important to know if a company is UK tax resident or not since that determines the extent to which the company is within the charge to UK corporation tax. A UK tax resident company is generally subject to UK corporation tax on its worldwide profits unless it has made a valid foreign branch exemption election under which the profits of any of its non-UK permanent establishments are exempt from UK corporation tax. For more information, see: What is the impact of being UK tax resident?
Even if a company is not UK tax resident, it can
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