Introduction
Directors of non-UK-incorporated, non-UK tax resident companies which have some connection with the United Kingdom (eg, UK shareholders) have an important role in ensuring that the company in question does not become UK tax resident.
In the recent case of
HMRC v Development Securities PLC, the Court of Appeal held that a Jersey-incorporated company with a majority of Jersey-based directors was UK resident. Although the facts of the case were unusual, some useful pointers as to what went wrong for the company and how it could have done better can be gleaned from the judgment.
Background
In broad terms, a non-UK-incorporated company is not UK tax resident if its central management and control takes place outside the United Kingdom. The question of how to determine where a company is centrally managed and controlled has been analysed in a series of UK cases stretching back over more than a century. These cases have held that normally a company is resident in the count
Lithuania has become the go-to destination for many British fintech businesses in search of greener post-Brexit pastures, the head of online banking service ConnectPay said.
Lithuania has become the go-to destination for many British fintech businesses in search of greener post-Brexit pastures, according to the head of online banking service ConnectPay.
Following Brexit, many UK fintechs are relocating and moving to Lithuania.
Marius Galdikas, chief executive of Lithuanian banking firm ConnectPay, cited the examples of Revolut and Yapily which have both announced they are expanding their operations to Vilnius, the capital of Lithuania.
Galdikas put the trend down to fintechs wanting to leave the UK following Brexit and said some are moving to Lithuania due to the nation’s ability to issue licenses quickly, and its innovation-friendly regulation.
At the end of October, the Bank of Lithuania gave the green light to establish a new Centre of Excellence in Anti-Money Laundering, an initiative uniting finance market players, regulators and the government with the aim to further refine anti-money laundering controls.
DT5910 - Double Taxation Relief Manual: Guidance by country: Denmark: Notes
You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.
Hired out employees (Article 15)
‘Hired out’ employees are those whose services are hired out by their employer to another employer who effectively directs and controls the activities of the employee, the first employer having no responsibility for carrying out the work on which the employee is engaged. Article 15(3) of the convention, which was introduced by the 1991 amending convention, denies the employee any exemption from tax in the country in which they are working they might otherwise have obtained under Article 15(2).