Non-UK companies subject to UK tax

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

A non-UK company may be subject to UK tax either directly or indirectly. If the company is subject to UK tax, it may have a number of UK filing requirements (see the UK filing requirements guidance note).

The taxation of UK trading profits of overseas companies depends to a large extent on how the activity is structured and also whether the business is trading ‘in’ the UK or ‘with’ the UK. Broadly, an overseas entity trading in the UK via a UK permanent establishment (PE), typically a branch, will be subject to direct UK tax. Similarly, if the overseas entity establishes a UK subsidiary, that will be subject to direct UK corporation tax on its worldwide profits in the usual way. Conversely, an overseas entity (that is not UK tax resident) trading with the UK (eg purchases or delivery) does not generally bring the non-resident within the scope of UK tax. There are some limited exceptions to this which are set out below at ‘Indirect UK tax’.

Therefore, one of the key questions

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more

Year-end tax planning

Value Added Tax

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more

Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more

��Ӱ��