Corporate Tax Residency
Navigating the complexities of corporate residency is crucial for any business operating across borders. Our advisory services ensure your company’s tax residency is structured efficiently, compliant with UK regulations, and aligned with your global business strategy. We provide practical, proactive guidance to help you avoid common pitfalls and HMRC scrutiny
Our Corporate Residency Services
Corporate residency in the UK is determined not just by where a company is incorporated, but by where its central management and control (CMC) is exercised.
A company is UK tax resident if:
- It is incorporated in the UK
- Or its CMC is exercised in the UK, regardless of where it was incorporated
What HMRC Looks For
- Who is making strategic decisions
- Where those decisions are actually made
- Whether directors are truly in control, and from where
Common Traps
- Assuming UAE incorporation protects against UK tax, even when strategic decisions are made from the UK
- Holding offshore board meetings, but exercising control from the UK
- Failing to consider anti-avoidance legislation such as transfer pricing, TOAA, or exit tax rules
Practical Tips
- Structure your board carefully and ensure real decision-making takes place offshore
- Keep clear, dated documentation like board minutes and correspondence
- Focus on real substance. HMRC is more concerned with actions than appearances
Penalty Alert
Offshore avoidance schemes involving the UAE can attract penalties of up to 150 percent of the tax due, plus the tax itself and interest.