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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5147
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

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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)?

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.

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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?

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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