Corporation Tax Act 2009 section 18

Companies treated as non-UK resident under double taxation arrangements

Section 18 deals with the tax residence status of companies that are treated as resident outside the UK under a double taxation agreement, even though they might otherwise be considered UK resident.

• A company treated as resident in an overseas territory and non-UK resident under a double taxation agreement is regarded as non-UK resident for all corporation tax purposes.
• This applies even if the company would otherwise be UK resident because it is incorporated in the UK, has historically established UK residence, or is treated as UK resident under any other legal rule.
• The double taxation agreement's "tie-breaker" residence provisions take priority over all domestic UK residence rules.
• For the purposes of this test, it is assumed that the company has made a claim for relief under the relevant double taxation agreement and that, as a consequence of the claim, the question of its treaty residence falls to be determined.