INTM120010 - Company Residence

Company residence: why is residence important?

Residence is important because it determines the scope of taxation.

A company which is resident in the UK is normally subject to corporation tax on the whole of its chargeable profits, on a worldwide basis (subject to relief for double taxation).

A company which is not resident in the UK is only liable to corporation tax if it carries on a trade in the UK through a permanent establishment (TA88/S11, previously branch or agency). A non- resident company may also be liable to UK income tax on non-trading income.