INTM120130 - Company Residence

Company residence: when to make a submission to CT & VAT, International CT

The need for detailed examination of prime records and interviews with witnesses possibly overseas make some cases suitable for working by investigation sections of Head Office. In some cases, the Special Compliance Office (SCO) may be able to help in investigating the prime facts and the first step should be to show your case to the local SCO liaison officer. The SCO intranet home page includes information on liaison arrangements.

CT & VAT, International CT would like to see cases of suspected avoidance where you think there may be a possibility of challenge on residence at an early stage.

You should seek advice on other cases where the facts have been established as far as possible but there is doubt or disagreement as to how you should interpret them.

You should also make a submission to CT & VAT, International CT where:

• Where there is doubt over whether a company is 'carrying on business' – see INTM120040.
• Where there is doubt over whether a company is 'taxable in a territory outside the UK' – see INTM120040.
• Any case where a UK incorporated company claims to be UK non-resident other than by the operation of a treaty – see INTM120040.
• Any case in which the company presses a claim, or you consider, that the central management and control and effective management are located in different territories should be submitted to CT & VAT, International CT when you have obtained the facts. See INTM120070.
• Do not argue that a holding company is caught by FA94/S249 without first submitting the file to CT & VAT, International CT. See INTM120070.
• Any claim that the wording in the Isle of Man or Channel Islands treaties does amount to a tie-breaker should be referred to the Central Policy, Tax Treaty Team. See INTM120070.

It is unlikely that you will now encounter enquiries arising from the commencement and transitional provisions of the incorporation rule. However, guidance is provided at INTM120050, including the requirement to make a submission in the following circumstances:

• Where, exceptionally, a company incorporated in the UK before 15 March 1988 (other than a shelf company) claims retrospectively that it was never resident in the UK or that it migrated before 15 March 1988.
• If a company which appears to have been a shelf company on 15 March 1988 persists in a claim that it carried on business before that date.
• Where there is doubt over the date on which a company commenced activity.
• Where there is doubt or you suspect avoidance by a UK resident in the case of a nowhere company which has been active requesting confirmation of its non-residence status immediately before 15 March 1988 in order that it does not come onshore until 15 March 1993.