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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4983
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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If a company (registered in the UK) with one of three shareholders/directors

Resolved Question:

if a company (registered in the UK) with one of three shareholders/directors living the in UK (the other 2 live outside the UK) does business outside the UK (all its customers and all its suppliers are outside the UK) but the company has a UK based bank account to do its business with, is this company liable to UK based corporation tax?
Is there a case to be made to move the company and its bank account to outside the UK to say Isle of Man and what will the implications on corporation tax be?
Also what is the liability of the 3 directors with regards ***** ***** (from directors income and from income as shareholders).
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

I can only advise you on tax matters relating to UK and not offshore.
Please advise if you wish me to continue.

Many thanks
Customer: replied 2 years ago.

Ok - so given the question as I posted it what would be the tax liability on the company? If I don't move it off shore?

Expert:  taxadvisor.uk replied 2 years ago.
William, thank you for your reply.

As the company is registered in the UK and has a business address in the UK from where it trades, albeit its customers/suppliers are outside the UK, profits generated by the operation would be chargeable to corporation tax in the UK.

It does not matter that 2 of the three shareholders are based abroad.
Any income sourced from the UK received by directors would be chargeable to UK income tax.

The director who is based in the UK and presumeably UK resident for tax purposes would be taxed on worldwide income and gains.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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