I have a UK limited company client. The same individual is the sole director and shareholder. He recently became non-UK resident. Are there any implications for the company?
I vaguely recall a thread on AWeb about a similar situation. Any ideas?
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I don't recall the thread but a few issues off the top of my head :
Controlled Foreign Companies legislation in the new jurisdiction of residence
Tax/remuneration planning for the new situation. So often I see clients with UK accountants who are still recommending salary/dividend schemes to my French resident clients
A1/S1 or other provision for the client's healthcare abroad
I'm sure there will be other issues
.
I think I recall the thread - where the director and shareholder was German and it was pointed out that the UK company may be subject to tax in Germany. as pointed out above.
look at the double tax treaty
In all double tax treaties namely Article 4 (Resident) - it talks about effective place of management. Hence if you are controlling the operation in another country you will probably have to pay tax in that country on the UK profits. Hence you end up paying tax in both countries but obtain a credit for the overseas tax paid in the UK
Exit Charge
If the Company becomes non-uk resident an exit charge may be in point. Of course whether it is worth pursuing is another matter. Depends on the value of the Company and intangibles that move I guess.
They're rules
To capture a transfer of value out of the UK. Some literature around the point here http://www.hmrc.gov.uk/manuals/cgmanual/cg42370.htm.
Transfer of Assets Abroad under ITA 2007 may also be in point and you should consider his personal position too.