Double Taxation Treaties Explained: How Foreign Owners Avoid Being Taxed Twice in the UK
Executive Summary A double taxation treaty, also known as a double taxation agreement or DTA, is an agreement between the UK and another country that determines where income and profits should be taxed. Treaties can prevent the same income from being taxed twice by: However, treaty relief is not always automatic. Foreign owners may need […]
Withholding Tax on Dividends Paid to Overseas Parent Companies: What UK Subsidiaries Must Know
Executive Summary A UK subsidiary can generally pay an ordinary dividend to its overseas parent company without deducting UK withholding tax. This is one of the principal advantages of using a UK holding or subsidiary structure. However, the payment must be a genuine dividend made from sufficient distributable profits and approved under UK company law. […]
UK Subsidiary vs UK Branch: Which Structure Should a Foreign Parent Company Choose?
Executive Summary For most foreign groups establishing a long-term UK operation, a UK subsidiary is usually the preferred structure. It is a separate legal entity, provides stronger liability protection and creates a clearer platform for UK employees, customers, banks and investors. A UK branch may be suitable where the overseas company is testing the market, […]
Could a few pounds today boost your State Pension for life?
If you’re self-employed, now is the perfect time to check your National Insurance (NI) record. HMRC is contacting around 800,000 individuals who may have gaps in their NI record between 2015/16 and 2023/24. In many cases, these gaps arose because Class 2 National Insurance wasn’t correctly recorded, despite tax returns being submitted. The good news? […]
Permanent Establishment Risk in the UK: When Does a Foreign Company Become Taxable in Britain?
EExecutive Summary A foreign company can become subject to UK corporation tax even if it is not incorporated in the United Kingdom. This usually happens when the business creates a Permanent Establishment (PE) in Britain through employees, directors, offices, warehouses, or agents carrying out business activities in the UK. Understanding PE risk is essential for […]
UK VAT Registration for Foreign Businesses in 2026: Thresholds, Risks and Common Compliance Mistakes
Executive Summary Many foreign businesses trading in the UK incorrectly assume they can rely on the standard UK VAT registration threshold of £90,000. In reality, overseas businesses often have to register for UK VAT from their first taxable sale. Whether you are importing goods, operating an ecommerce business, storing inventory in the UK or selling […]
UK Statutory Audit Thresholds in 2026: Does Your Foreign-Owned UK Company Need an Audit?
Executive Summary Not every UK company requires a statutory audit. In 2026, many foreign-owned UK companies can claim audit exemption if they meet certain size criteria. However, group structures, shareholder requirements, regulated activities and lender conditions can still trigger an audit requirement. Understanding these rules is essential to avoid unnecessary costs and ensure compliance with […]
Safeguarding Client Money in the UK: FCA Rules and Compliance Guide for Foreign-Owned Businesses
Executive Summary If your business receives, holds or processes customer funds in the UK, you may be subject to FCA safeguarding or client money rules. These regulations require firms to protect customer funds through segregation, reconciliations, record keeping and independent oversight. Failure to comply can lead to FCA investigations, fines, licence restrictions and reputational damage. […]
Moving to the UK – Could You Qualify for Split Year Treatment?
If you’ve recently moved to the UK after living overseas, you may be able to reduce your UK tax bill through Overseas Workday Relief (OWR). From 6 April 2025, the UK introduced a new Foreign Income and Gains (FIG) regime, replacing the previous non-dom rules. One of the key reliefs available under the new regime […]
UK Lease Accounting in 2026: FRS 102 Changes, IFRS 16 Requirements and What Overseas Companies Need to Do
Executive Summary From 1 January 2026, major changes to FRS 102 lease accounting will require many UK businesses to recognise lease liabilities and right-of-use assets on their balance sheets. The changes bring UK GAAP closer to IFRS 16 and will affect foreign-owned UK subsidiaries, branches and groups operating in the UK. If your company leases […]