The Treasury and HMRC are consulting on the introduction of a corporate UK re-domiciliation regime to support companies seeking to relocate to the UK. The proposals would allow companies incorporated outside of the UK to move their domicile to the UK, enabling them to shift their place of incorporation from another jurisdiction to the UK while maintaining the same legal entity with minimal administrative complexity.
One key objective for government is to ensure any new regime is not used for tax avoidance purposes. Key consultation points include:
options for legislation setting out whether a re-domiciling company is treated as UK resident for tax purposes, and whether this should only apply where the company’s central management and control is in the UK (with equivalent provision on UK residence status for companies which re-domicile out of the UK);
the potential for importation of losses and whether specific provision would be required to address any increased risk;
whether the rules on capital assets brought into the UK corporation tax net at their market value when companies move to the UK from an EU country should be expanded to migrations from non-EU jurisdictions;
the impact on the personal tax liabilities of individuals, including whether any anti-avoidance measures could be needed for a re-domiciliation regime; and
implications for stamp taxes on shares and securities and also VAT.
The Treasury and HMRC are consulting on the introduction of a corporate UK re-domiciliation regime to support companies seeking to relocate to the UK. The proposals would allow companies incorporated outside of the UK to move their domicile to the UK, enabling them to shift their place of incorporation from another jurisdiction to the UK while maintaining the same legal entity with minimal administrative complexity.
One key objective for government is to ensure any new regime is not used for tax avoidance purposes. Key consultation points include:
options for legislation setting out whether a re-domiciling company is treated as UK resident for tax purposes, and whether this should only apply where the company’s central management and control is in the UK (with equivalent provision on UK residence status for companies which re-domicile out of the UK);
the potential for importation of losses and whether specific provision would be required to address any increased risk;
whether the rules on capital assets brought into the UK corporation tax net at their market value when companies move to the UK from an EU country should be expanded to migrations from non-EU jurisdictions;
the impact on the personal tax liabilities of individuals, including whether any anti-avoidance measures could be needed for a re-domiciliation regime; and
implications for stamp taxes on shares and securities and also VAT.
