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HMRC internal manual

International Manual

Double taxation agreements: residence: Companies

A company is resident in the UK if either

  • it is incorporated in the UK


  • the central management and control of its business is in the UK.

Where a company is both resident in the UK and resident in another country under its domestic law, it is called a dual resident company. From 30 November 1993, CTA09/S18 (formerly FA94/S249) provides that where such a company is resident in a country with which the UK has a Double Taxation Agreement containing a residence tie-breaker for companies which, on the facts, would award residence to the other country, then the company is treated as not resident in the UK. Typically the tie-breaker awards residence to the country in which the effective management of the company is located.

Refer to INTM120070 onwards for detailed guidance on the application of the 1994 legislation. Contact CTSD Business, Assets & International, Tax Treaty Team, in cases where a company claims that Section 249 applies and that the business is controlled in one country while the bulk of the business activities take place in another, or where the company refuses to provide details of the business. In cases where it is claimed that Section 249 applies and the company is said to be treaty resident in a country not shown on the list at INTM120070, contact CSTD Business, Assets & International, Tax Treaty Team.