D4.131 Transfer of company residence—tax implications
Companies incorporated in the UK
The requirement that a company incorporated in the UK is to be treated as resident in the UK1, means that such a company can never transfer its residence. However, if such a company transferred its effective management to a country outside the UK it might, under the terms of a double taxation agreement, be treated for the purposes of that agreement as resident in that other country, although it is still treated as resident in the UK under the incorporation rule. Such a company is called a dual resident company. However, legislation now exists which states that a company which is treated for the purposes of a double taxation agreement as not resident in the UK is treated for all UK tax purposes as not resident, even if it is incorporated in the UK2, so that there are now few dual resident companies.
Companies incorporated outside the UK
A company incorporated abroad which is centrally managed and controlled in the
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