Back to basics: Corporate tax residence

The concept of residence is important because it typically determines where a company is subject to tax. In the UK corporation tax is chargeable on the worldwide profits of any company which is resident in the UK. CTA 2009 s 5 provides that:

• a UK resident company is chargeable to corporation tax on all its profits wherever arising; and
• a non-UK resident company is within the charge to corporation tax only if it carries on a trade in the United Kingdom through a permanent establishment in the UK.

Although legislation provides that UK resident companies are subject to corporation tax it does not give the term residence an exhaustive...