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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Has UK resident (natural person) any tax oblogations, if he

Resolved Question:

Hello
Has UK resident (natural person) any tax oblogations, if he owns shares of BVI company (more than 50 %, less than 100 %, executes no managing functions, makes no bank transactions), BVI company receives income and doesn't distribute dividends, makes no payments in favor of UK resident (directly and indirectly)?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question.

If you have no income from the BVI company, then there is no reporting to be made on your UK tax return - no tax obligations.

As a UK resident for tax purposes, you are taxed on your worldwide income and capital gains arising in the tax year.

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.

Customer: replied 1 year ago.
Thank you for response. Please, clarify, are there any conditions according to which revenue of BVI company can be considered as personal income for UK resident?
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply..

A company is a separate legal entity and its income can't be deemed income of an individual for tax purposes in the UK.

If you got any fee/salary/dividends from that company then these would be chargeable to UK income tax.

Any gain from sale of shares would be chargeable to UK capital gains tax.

I hope this is helpful and answers your question.

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