.png)
.png)
HMRC has reached an agreement with Jersey about the interpretation of ‘company residence tie-breaker’ (1952 Jersey-UK double tax agreement (DTA)). Further, after a review of other agreements, including identical or very similarly worded provisions, the department has decided that the equivalent provisions in these DTAs must include a tie-breaker clause to decide where a company is to be treated as resident. Sixteen DTAs are affected.
Previously, a dual-resident company was not a resident of either jurisdiction under the terms of the provisions and so was outside the scope of the DTA. The change in policy means HMRC considers a dual-resident company is a resident of the jurisdiction in which it is managed and controlled, for the purposes of applying the DTA. Where the company is managed and controlled in both the UK and the other jurisdiction, it will remain outside the scope of the agreement.
HMRC policy paper: tinyurl.com/CompanyResidence
