Dual Residency refers to the situation where an individual is considered a resident for tax purposes in two or more jurisdictions. This can occur when an individual has significant ties to more than one country, such as owning property or maintaining a business in both countries. Dual Residency can create complex tax issues, as different countries may have different tax regulations and may have different rules for determining residency. Individuals who are considered a tax resident in two different countries may be subject to double taxation, meaning they could be taxed on the same income or gains twice. To avoid this, the UK has tax treaties in place with many countries that provide rules for determining which country has the right to tax the individual's income or gains. It is important to seek professional advice when dealing with Dual Residency
Residence of companiesThe concept of residence is important because corporation tax is chargeable on the worldwide profits of any company that is resident in the UK. The liability may be reduced by exemption or relief under a double taxation agreement or by unilateral relief. Non-UK resident companies are only liable to UK corporation tax on certain sources of income, such as profits attributable to a trade of dealing in or developing UK land, for example. This guidance note outlines when a company will be treated as resident in the UK. There may also be tax consequences when the residence of a company changes.See the Inbound migration and Outbound migration guidance notes.A company will be treated as resident in the UK if it is incorporated in the UK (the ‘statutory test’ ― CTA 2009, s 14) or centrally managed and controlled in the UK (the ‘case law test’). See also the Non-UK companies subject to UK tax guidance note for further commentary on how a non-UK company may be subject to UK tax and the relevant UK filing requirements.The Government consulted on whether or not to introduce a corporate re-domiciliation regime. The consultation closed on 7 January 2022 and a summary of the responses to the consultation was subsequently published.More detailed commentary on company residence can be found in Simon’s Taxes D4.103. HMRC guidance on company residence can be found in the International Manual. Statutory residence testIf a company is incorporated in the UK, then it is resident in the
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