Owner of UK company becomes non-resident

Owner of UK company becomes non-resident

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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?

Replies (7)

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By gerrysims
18th Sep 2013 17:41

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

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By blok
18th Sep 2013 18:22

.

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.

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By sash100
18th Sep 2013 22:55

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

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By cparker87
19th Sep 2013 10:10

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.

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Replying to thevaliant:
Red Leader
By Red Leader
19th Sep 2013 11:20

exit charge!

THAT'S what I was thinking of but couldn't remember!

Could you elaborate, please? My client company is a fairly simple one man consultancy.

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By cparker87
19th Sep 2013 11:30

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.

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Replying to bernard michael:
Red Leader
By Red Leader
19th Sep 2013 12:12

n/a?

I followed the link. The exit charge only seems to apply if the company becomes non-resident. As it is a UK ltd co, it remains UK resident even if all the control is offshore.

So n/a?

Thanks.

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