Overseas Resident Company
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| Overview |
| Forms to get you started |
| Fees |
| Frequently Asked Questions |
| HMRC Guidance |
| Rates & tables |
| Residency notes |
| Maintaining your records |
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| UK Resident Individual |
| Overseas Resident Individual |
| UK Resident Company |
| Company Info |
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Residency notes
A company may be UK resident, non-resident, resident in the UK and another country, and it may be a Controlled Foreign Company. They are all liable to tax on the income from UK property, and may all be taxed differently.
After 14th March 1988 a company incorporated in the UK is regarded as being resident there for the purposes of the Taxes Acts. There are a few exceptions all of which depend on the residency of the company before 14th March 1988.
Companies incorporated outside the UK may be deemed to be UK resident. For these companies one must consider location of the Central Management and Control. If the Central Management and Control takes place in the UK then HMRC may seek to treat the company as being UK resident.
A company which is UK resident or treated as UK resident is subject to Corporation Tax on its profits, and some relief may be available if it is subject to tax in another territory or jurisdiction.
From 1st January 2003 a company not resident in the UK is liable to UK Corporation Tax only if it is carrying on a trade through a permanent establishment in the UK. But it is still subject to Income Tax on income from property and other investments.
The Non-Resident Landlord Scheme applies to company landlords as well as non- resident individuals. The letting agent (or the tenant if there is no letting agent) must deduct tax from the rent and pay it to HM Revenue & Customs unless approval has been given for the rent to be paid without a tax deduction. The application form for this approval is form NRL 2.
A Controlled Foreign Company is one which is:
- resident outside the UK, and
- controlled by person(s) resident in the UK (see residence - individual) and
- is subject to a lower level of taxation in the territory in which it is resident.
For the above purposes the words "resident" and "controlled" have special definitions, as does "lower level of taxation". Where a company is a Controlled Foreign Company any person with an "interest" in the company may be assessed to tax personally.
Many thousands of pages have been written on the subject of residency. It is therefore impossible to give anything other than the roughest outline in a document such as this. There are many exceptions and rules other than those described above. You should not rely on the foregoing. You should always take professional advice specific to your circumstances. We would be pleased to advise our clients upon request.