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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4962
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Hello A company I am involved with wishes to transfer its

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A company I am involved with wishes to transfer its status from being a Cypriot to a UK company. Could you tell me how that can be done and whether there are any tax implications?

Hello, I'm Keith and happy to help you with your question.

The most frequently used method is the 'real seat' approach which entails moving the place of effective management (POEM) from one jurisdiction to another. The company would thus be considered as resident in both Contracting States, but deemed to be resident in the state in which the POEM is resident. This exercise requires careful legal planning as it is a Tom Tiddler's ground for tax evasion and viewed with deep suspicion by the tax authorities in both countries. You are advised to consult local legal and taxation assistance before attempting this exercise.

I regret the detail is beyond the scope of this question. You must seek external advice.
Customer: replied 4 years ago.

Thanks, XXXXX XXXXX is wrong with setting up a new company in the UK and selling the assets from one to another (assets are only shares)

None whatsoever, it's the easy way out. Remember that any capital gain or loss made by the vending company will have to be declared to the relevant tax authorities.
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