Company residence – New draft guidance
HMRC have published new draft guidance on company residence. The guidance specifically concerns the circumstances in which HMRC will not normally review a company’s residence status.
The guidance includes 8 short examples of scenarios where HMRC would not usually seek to establish that a company is UK resident for the purposes of determining whether it is subject to UK corporation tax.
The guidance also includes a ninth example which is designed to illustrate a typical case where an enquiry may be necessary to review a company’s residence status.
The ninth example reads as follows "The majority of directors habitually perform a significant part of their duties in the UK, merely leaving the UK to attend board meetings. HMRC may wish to examine all relevant factors in such a case to determine whether or not the company should be regarded as resident in the UK".