Resident in the UK
Who has to pay UK tax?
Very broadly; persons including individuals companies and trusts resident in the UK are generally taxable on their worldwide income.
Resident in the UK
A person will be treated as resident:-
- if they are physically present for 183 days in any tax year from 5th April,
- they are treated as regular visitors to the UK staying for 90 days or more each year for the last four years or
- they come to work in the UK with the intention of staying two or more years.#
- if they have a branch or agency in the UK
Companies
A company will generally be treated as resident in the UK if:-
- it is UK incorporated, or
- it is managed and controlled in the UK, meaning either that the meetings of directors take place in the UK or that effective control of the boards decision making is in the hands of persons resident in the UK
Companies and individuals may be resident in more than one country and if there is a double tax agreement between the two countries, the residence of the individual or company may be resolved so as to avoid the double taxation of the income arising in either place.
Where there is a double tax agreement for example between the place of incorporation and the place of management of the company, in general the company will be treated as resident in the place of management and not resident for tax purposes in the place of incorporation
LLP's
A UK LLP is taxed as a partnership at the level of the limited partners and not at the level of the LLP itself unless the LLP was trading in the UK or had or was treated as having UK sourced income.
Non-Domiciled
There may be circumstances where a person, although not resident in the UK may be taxable on worldwide capital gains; being ordinarily resident in the UK. This would not apply to non-domiciled individuals resident in the UK for less than 7 of the last 10 tax years who are not generally subject the UK tax on capital gains on disposals of assets not situated in the UK and not remitted to the UK.
© Michael Reason LLM 2000-2008 |
