Corporation Tax Act 2009 section 15

Continuation of residence established under common law

Section 15 ensures that a non-UK-incorporated company which was previously UK resident continues to be treated as UK resident even after it stops carrying on business or comes under the control of a foreign liquidator during a winding up.

• This section applies only to companies that are not incorporated in the United Kingdom and are not UK resident by virtue of sections 16 or 17 (which deal with companies transferring their registered office to the UK).
• A company that has ceased carrying on business continues to be UK resident if it was UK resident immediately before it stopped trading.
• A company being wound up outside the United Kingdom continues to be UK resident if it was UK resident immediately before any of its activities came under the control of a foreign liquidator — that is, a person performing functions equivalent to those of a UK liquidator.
• The purpose of the rule is to prevent a company that was UK resident through central management and control from losing that residence status simply because management and control moved outside the UK upon cessation of business or an overseas winding up.